{"id":1004360534,"date":"2019-10-16T08:36:38","date_gmt":"2019-10-16T16:36:38","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004360534"},"modified":"2020-02-14T07:18:52","modified_gmt":"2020-02-14T15:18:52","slug":"dishs-entry-means-growth-for-wireless-tower-reits","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/dishs-entry-means-growth-for-wireless-tower-reits\/","title":{"rendered":"What Could Dish\u2019s Entry Mean for Wireless Tower REITs?"},"content":{"rendered":"
\"\"

Dilara Sukhov Photo courtesy of Moody’s<\/em><\/p><\/div>\n

On July 26, the U.S. Department of Justice conditionally approved the proposed merger between T-Mobile U.S. Inc. and Sprint Corp., and said the deal could proceed if the combined entity, among other conditions, agreed to sell certain assets to Dish Network Corp., which would allow Dish to become a fourth facilities-based national wireless competitor. The settlement calls for the combined entity to sell certain assets to Dish, lessening the overall credit negative effects from the merger on tower real estate investment trusts.<\/p>\n

In Moody\u2019s view, by accelerating the roll-out of Dish\u2019s wireless network, the amended merger terms would benefit tower REITs American Tower Corp., Crown Castle International Corp. and SBA Communications Corp. Moody\u2019s believes that the tower REITs’ growth opportunities would likely expand, their wireless tenant roster would include four nationwide wireless carriers vs. three, and lease non-renewal from the T-Mobile\/Sprint merger would likely be lower than without Dish as a fourth national wireless network carrier.<\/p>\n

Moody\u2019s believes that Dish\u2019s accelerated deployment of  its existing and newly acquired spectrum will likely be an additional driver of revenue growth for tower REITs. According to the new deal terms, Dish would acquire Sprint\u2019s prepaid businesses including Boost Mobile, Virgin Mobile, and the Sprint-branded prepaid service, which serve about 9.3 million customers in total. In addition, Dish would buy 14 megahertz of Sprint\u2019s 800 MHz spectrum and gain access to the new T-Mobile network for seven years.<\/p>\n

De-risking Lease Non-Renewals<\/h2>\n

Additionally, Dish has committed to the Federal Communications Commission that it would deploy a facilities-based 5G broadband network covering at least 70 percent of the U.S. population by June 2023. In Moody\u2019s view, this commitment indicates that the new entrant into the U.S. nationwide wireless sector will have sustained growth for the next four years. Dish will also have an option to take on leases on at least 20,000 of the 35,000 wireless sites that are planned for decommissioning under the combined T-Mobile\/Sprint merger integration plans, de-risking the lease non-renewals for tower REITs in the two to three years following the merger.<\/p>\n

However, Moody\u2019s believes that the effect of the T-Mobile\/Sprint merger, in and of itself, is credit negative for wireless tower  REITs, as the credit agency noted in a July 2018 CPE article<\/a>. In Moody\u2019s view, the merger would lead to a decline in lease renewal rates because of merger-related equipment decommissioning, among other negative effects.<\/p>\n

According to Moody\u2019s, favorable market trends will likely mitigate some of the credit negative effects from the merger on tower REITs. Moody\u2019s believes that rising data consumption, wireless carriers’ ongoing investments in their networks and investments in 5G network deployment will continue to support revenue growth for tower REITs.<\/p>\n

Dilara Sukhov, CFA, is an assistant vice president & analyst with Moody’s Investors Services<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

According to Dilara Sukhov of Moody\u2019s, the accelerated roll-out of Dish\u2019s wireless network will lower but not eliminate T-Mobile\/Sprint merger\u2019s negative effects for tower REITs.<\/p>\n","protected":false},"author":1041,"featured_media":1004360537,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21684],"tags":[33033],"class_list":["post-1004360534","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-viewpoint","tag-moodys-investors-service"],"acf":[],"yoast_head":"\nWhat Could Dish\u2019s Entry Mean for Wireless Tower REITs? - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/dishs-entry-means-growth-for-wireless-tower-reits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Could Dish\u2019s Entry Mean for Wireless Tower REITs?\" \/>\n<meta property=\"og:description\" content=\"According to Dilara Sukhov of Moody\u2019s, the accelerated roll-out of Dish\u2019s wireless network will lower but not eliminate T-Mobile\/Sprint merger\u2019s negative effects for tower REITs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/dishs-entry-means-growth-for-wireless-tower-reits\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-16T16:36:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-14T15:18:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/10\/Dilara-Sukhov.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Dilara Sukhov\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/dishs-entry-means-growth-for-wireless-tower-reits\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/dishs-entry-means-growth-for-wireless-tower-reits\/\",\"name\":\"What Could Dish\u2019s Entry Mean for Wireless Tower REITs? 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