Shares of American Tower (NYSE:AMT), along with other U.S. tower building telecom companies, fell on Monday, as AT&T’s $39 billion deal to buy T-Mobile USA raised concerns that telecom consolidation will reduce the demand for infrastructure.In the past, when two U.S. wireless companies merged, there has not been an immediate impact on cell site rentals due to the remaining life on 5 to 10 year leases. But the impact is felt on future growth rates farther down the road.The merger would almost certainly eliminate some demand, reducing the number of major wireless carriers to 3 from 4. It would effectively eliminate an entire 4G network from being built, as T-Mobile would share the network At&T has already started building out.Shares of American Tower are trading down 8.59% at $46.27.
If you are a new American Banking & Market News reader, we would like to welcome you to our website. American Banking & Market News provides daily coverage of analysts’ ratings for some of the largest publicly traded companies in the world. We cover news surrounding large-cap U.S. financial companies, including Citigroup, Bank of America, Wells Fargo and JPMorgan Chase and discuss the fledgling industry of peer to peer lending. American Banking & Market News publishes hundreds of press releases per day and is part of the American Consumer News, LLC network. We would invite you to consider following our ‘AmericanBanking’ account on Twitter and subscribing to our RSS Feed. You can always view our latest articles and video content by visiting our home page.
