Leap: This decommission is only in the very early phases. The network has 9,900 cell sites and has contributed roughly $63M and $22M of site leasing revenues to AMT and SBAC at the time that the AT&T/Leap transaction closed. Our research suggests that AT&T plans to keep (i.e., pay rent on) <250 of the acquired Leap transmission locations.
MetroPCS: T-Mobile is in the midst of the MetroPCS decommission, having turned off the Philadelphia, Las Vegas and multiple California markets. It is still paying tower rent on a portion of sites because of the time lag between network shutoff and equipment removal. Despite aggressive network synergy goals related to the shut-off of the MetroPCS network, we believe TMUS is keeping more legacy MetroPCS sites than originally intended. Our analysis assumes that TMUS keeps 2,000 of the 12,700 acquired MetroPCS transmission locations. MetroPCS contributed an estimated $46M and $18M in site leasing revenues to AMT and SBAC, respectively, at the time of acquisition by T-Mobile.
Clearwire: Sprint is in the very early phases of the Clearwire decommission. As Sprint has decided to keep roughly 13,000 of the 15,000 legacy Clearwire sites, we consider in our churn analysis primarily the revenue contributions of Clearwire to AMT and SBAC in site locations that overlapped with Sprint. These contributions are an estimated $25M and $11M, respectively.
Jonathan Atkin is a managing director of RBC Capital Markets.