Our clients have forwarded us letters they have received from T-Mobile and MD7. It looks like MD7 has mailed out letters to landlords in an effort to secure more favorable business terms for their client T-Mobile. Below is an example of one of the letters our clients have received.
Should You Be Worried About T-Mobile Sprint Merger?
The answer is typically no you should not be worried. According to T-Mobile the merger was completed as of April 1, 2020, however, as history has taught us in previous telecom mergers (Sprint/Nextel, AT&T/Cricket, etc.) it typically takes years to sort out which cell sites to keep and which cell sites to shut down.
If you have a T-Mobile cell tower, or cell site lease it is likely your tenant is not going anywhere. T-Mobile’s contractors may argue otherwise, but you must remember that they are trying to achieve a pay day. If you don’t take any action with them, they don’t make any money.
If you have a Sprint cell tower, or cell site lease, you still may be fine, but the future of your lease is a bit more uncertain. Currently the way Sprint cell sites are being reviewed is first T-Mobile reviews the site to see if they want to keep it. If they do not want to keep the Sprint site they then forward the opportunity over to DISH for review. If DISH want’s to keep the site, the site will stay on-air and they will continue to pay you rent. In the event DISH also does not want to keep the site, it will likely be shut down.
In regards to when the site will be shut down, as mentioned above it could take a few years for T-Mobile to get everything organized enough to execute a decommission.
As of October 21, 2020, six months after the announcement of the closure of the merger, Airwave Advisors is not aware of one site being decommissioned as a result of the merger.
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About Nick G. Foster
Since founding Airwave Advisors® in 2014, Mr. Foster has added value to over 400 clients ranging from the State of Nevada, City of Beverly Hills, to Habitat For Humanity. Mr. Foster focuses on cell tower lease renewals, buyouts, new lease negotiation, and cell site lease management. Prior to starting Airwave Advisors® Mr. Foster founded and led the Cell Site Services Group within nationwide commercial real estate services leader Cassidy Turley (now known as Cushman & Wakefield).