How Would a Sprint and T-Mobile Merger Affect Your Cell Tower Lease?

Cell Tower Leaseholders who have had cell tower leases long enough understand the risks associated whenever news of possible wireless carrier mergers surface. In this article, we take a closer look at why this is so, focusing our attention to a merger already looming on the horizon – that of T-Mobile and Sprint’s.

More importantly, we’ll discuss whether the merger – if it does take place – will in fact affect the tower on your cell tower lease.

Sprint and T-Mobile possible merger

Early in the second week of March 2011, rumors of a possible merger between Sprint and T-Mobile began to gather steam. While this story has been going around for some time, it hasn’t been generating a bigger buzz than it has now. Analysts who think the time is ripe for this deal to take place anyway further fuel the rumors.

The contention is that these two carriers are way behind the top two leading industry giants, AT&T and Verizon. Hence, a merger can put them in a better position to provide a truly competitive third force – a role neither one (Sprint or T-Mobile) could perform alone.

Effects of merger talks on the cell tower industry

What does this mean for the cell tower industry? First of all, merger talks are always understandably bad for cell tower companies. On March 8, when news of the merger started to escalate, tower stocks traded lower. American Tower, Frontier Communications Corp, SBA Communications and Crown Castle all took hits during that day.

The reason is because when mergers happen, some cell sites will become redundant.

Redundancy risk

Redundancy happens when say a Sprint cell site and a T-Mobile cell site are located close enough so that it is feasible to eliminate one of them. Carriers view each site as a sunken cost so the actual cost of the cell site does not factor in. The rents they are paying on the cell site are the largest factor. If they can eliminate a cell site, they will. They will transfer all cellular equipment (antennas, base stations, etc) from that tower to the one that will remain standing, and still be able to serve the combined subscribers of the two carriers in the area.

Thus, once a merger between these two carriers pushes through, it is expected for them to sift through their tower inventory and to knock off towers that are deemed redundant and obsolete in order to save on costs.

Some also fear that because certain cellular equipment can be merged, there would be no need to retain two-sets of co-located equipment (equipment installed on the same tower) at all. One has to go. This would thus reduce the rented space on a tower and bring down its revenue.

Is redundancy or merger risk real?

But just how real is this risk? Oh it’s real all right. After the merger of AT&T and Cingular, the merged company started phasing out redundant cell towers. This also happened after Sprint merged with Nextel. AT&T eliminated 10’s of thousands of sites when they merged and Sprint is talking about eliminating over 50,000 Nextel sites in 2011.

However, since T-Mobile and Sprint are using totally different technologies (T-Mobile uses GSM, while Sprint uses CDMA), the case of redundancy – particularly for equipment co-located on the same tower – may not apply as much. On the other hand, it will be a totally different story altogether if the two decide to go for only one kind of technology and get rid of cell sites bearing the other kind.

To make things even more complicated, the influx of different kinds of mobile and portable devices like feature phones, smartphones, Pocket PCs, laptops, netbooks, and – more recently – tablet PCs (like the iPad) has brought a constantly dramatic rise in the demand for better wireless coverage. Consumers want bigger bandwidths and ever-wider coverage.

The only way to satisfy their demands is to increase the number of cell sites and capacity to existing cell sites. So while some factors (like redundancy) are pushing for the elimination of certain cell sites, other factors (like increased wireless demand) are pushing for their continued existence. And these are just a few of the many factors that need to be considered.

So the question really is, will redundancy apply to the cell tower on YOUR specific location? If you ask someone from the companies mentioned below, the answer will always certainly be a big “YES”.

What agents from Unison Site Management, Communications Capital Group, Landmark Dividend and APWIP will tell you.

I won’t be surprised if you already received a friendly letter from any of these companies warning you of the merger risk your tower is facing. They’ll even offer you a way out. They’ll offer to purchase your cell tower lease… albeit at a not-so-attractive price.

Should you succumb to a cell tower lease buyout?

Once you start receiving those cell tower lease buyout proposals, which is expected due to the rumored upcoming merger, always remember that: while there are many factors that can make a tower vulnerable to a merger risk, there are also as many that make it resistant to such.

If you want to be on the safe side, we strongly advise you to seek assistance from a highly experienced cell tower lease consultant who can give you the facts based on the actual specifications of your property and the tower standing on it. If you do decide to sell, then it would be prudent to seek advice to get the best possible price.

HP Pavilion 570-P045xt Review – A Durable, Compact Desktop With Good Graphics Technology

You can always count on HP to shake up the computer industry. This eye-catching, redesigned Pavilion is proof of that. If you’re looking for a budget desktop tower that comes with quad-core processing power, 8GB of memory, a wide port selection, and a 7200RPM hard drive, then you can’t go wrong with the HP Pavilion 570-p045xt. It comes with all of these and more – all available at an affordable price.

Thanks to Bluetooth 4.2 M.2, you can wirelessly pair the desktop with your Bluetooth-enabled devices, such as speakers, smartphones, printers, etc. For wired connections, there are multiple I/O external ports, including 3 USB 3.0, 1 USB Type-C 3.0, 2 USB 2.0, a headphone / microphone combo, and 1 RJ-45 connector. Use the USB 3.0 ports for superfast data transfers. Since you’ll obviously need to hook the tower up to a monitor, there are three video connectors: 1 HDMI, 1 DVI, and 1 DIsplayPort.

This is a nice looking tower available in Natural Silver, and looks great with any display. It’s compact compared to the traditional desktop tower and weighs just 12.57-lbs. Measurements in inches (W x D x H) are as follows: 12.4 x 6.42 x 12.09.

Whether you’re watching movies, playing games, or listening to music, you can get excellent audio out of the HP Pavilion 570-p045xt with its 5.1 channel surround sound

Get an Intel Core i5 processor that is capable of up to 3.5GHz with turbo boost. As mentioned above, it’s a quad-core CPU. There are dedicated graphics to provide an extra boost of power to your games and other entertainment. The machine comes with 2GB GDDR5 dedicated AMD Radeon RX (460) graphics as well as 8GB of system memory. The memory can be expanded as an additional empty DIMM slot is included.

Storage Capacity of HP Pavilion 570-p045xt Desktops

The hard drive has a 1TB storage capacity. At 7200-RPM, it’s fast for a SATA. The optical DVD drive gives you the ability to watch and rewrite DVDs. Windows 10 Home Edition (64) is the OS that comes with the Pavilion 570. With the 3-in-1 memory card reader, you can access files and data on an SD card, SDHC card, and MMC card.

Don’t underestimate the durability of this compact desktop: every single HP tower is put through 100+ rigorous tests to ensure its trusted reliability.

The HP Pavilion 570-p045xt is easy to set up and you can get everything up and running in no time. It’s a versatile machine that can be used for just about anything, from playing games to doing research and editing documents.

Save big when using HP desktop coupons online. Don’t think for a second that this PC is out of your budget range. With an HP Pavilion 570-p045xt discount, you can really get a great computer at a low price.

Will Computer Hardware and Technological Innovation Leave ATC Workers Unemployed?

If you will recall back in Ronald Reagan’s day as President, there was a showdown between his administration and the air traffic control workers. He warned them not to strike or they’d be fired – they did, and they were. End of story, or is it. That is to say will history repeat in the future if we bring forth Artificial Intelligent Computers, New Computer Hardware, and the third phase of NextGen ATC equipment and technologies? I believe so, and thus, we were having a conversation about these potential future eventualities at our Think Tank recently.

Consider if you will some of our comments here – think about what Troy Laclaire is saying and some of the points of contention I bring up, and I’d like to start this dialogue out with reminding folks that anytime human beings develop better tools to do their jobs, there will be fewer jobs to do, thus, some folks will be let go. The jobs that remain will be lower skill levels and much higher skill levels but those in the middle will disappear.

Now then, when it comes to the latest and greatest air traffic control systems being introduced one must ask why will we need humans in the process. After all, most of the near misses or runway incursions are due to human error, either air traffic controllers or the pilots themselves. So, let’s remove them from the situation. Yes, both the pilots and the controllers. But today, let’s talk about air traffic controllers, as future UAVs will surely tell all the pilots; “You’re Fired!” but that’s for another article.

If we use the recording and data from the best air traffic controllers to program the AI system, then the controllers will inevitably be worked out of a job right? So, I said jokingly; Train the computers, and let the Air Traffic Control B.A.S.E. jump off the tower to grow some balls? But seriously, what will we use all those old control towers for, as the computers will most likely be underground in air-conditioned rooms with full electronic security, no one goes in or out unless they have clearance as the official IT personnel for the system?

Now then, we may as well some of those control towers for something, but they are many stories tall, so should we dismantle them instead? Troy notes; “If this type of system was put in place, you wouldn’t have a need really for a control tower, and could put everyone below ground.” Right, which was another point, namely; what to use them for – restaurants, observation decks, tours, lounges, bars? BASE Jumping locations? Sniper towers to get the bad guys – what?

Troy wonders; “well, there are many different uses you can use the current towers for. Heck, why not setup homeless shelters or lease the building out to companies to use as remote data centers since they already have communications capabilities?” And really he’s onto something there, it’s a great place for antennas, and all those control towers are fully wired.

Well, out with the old computer hardware, in with the new, but indeed, this does change everything, fewer jobs, less human error, and more systems. Please consider all this.