8-KRegulation FD

CROWN CASTLE INC. 8-K Report, Regulation FD Disclosure (Nov 10, 2016)

Filed November 10, 2016For Securities:CCI

Summary

Crown Castle International Corp. (CCI) filed an 8-K on November 10, 2016, to address investor inquiries regarding its business with T-Mobile US, Inc. and Sprint Corporation. The report clarifies that as of Q3 2016, T-Mobile and Sprint collectively represented a significant portion of Crown Castle's consolidated site rental revenues, accounting for approximately 23% and 18% respectively. This disclosure is important for investors to understand the concentration of revenue from these two major wireless carriers. The filing also provides insight into the revenue derived from towers where both T-Mobile and Sprint are present, highlighting an approximately 8% contribution from each carrier on such co-located sites. This figure includes a minor impact of 1-2% from anticipated non-renewals due to network decommissioning by both T-Mobile (MetroPCS) and Sprint (Clearwire). The company also noted the remaining lease terms for these key customers, with an average of approximately six years for T-Mobile and five years for Sprint, offering a degree of revenue visibility.

Key Highlights

  • 1T-Mobile represented approximately 23% of CCI's consolidated site rental revenues as of Q3 2016.
  • 2Sprint represented approximately 18% of CCI's consolidated site rental revenues as of Q3 2016.
  • 3T-Mobile and Sprint together constituted a substantial portion of CCI's customer base.
  • 4Approximately 8% of consolidated site rental revenues came from each carrier on towers where both were present.
  • 5A small impact (1-2%) from expected non-renewals related to MetroPCS and Clearwire network decommissioning was disclosed.
  • 6Average remaining current term on lease agreements: approximately 6 years for T-Mobile and 5 years for Sprint.
  • 7The disclosure was made in response to recent investor inquiries.

Frequently Asked Questions

The main purpose of this 8-K filing is to provide investors with information regarding Crown Castle's business relationship and revenue concentration with T-Mobile and Sprint, following recent investor inquiries.

T-Mobile and Sprint are very significant customers. As of Q3 2016, T-Mobile accounted for about 23% of Crown Castle's consolidated site rental revenues, and Sprint accounted for about 18%.

The company anticipates a minor impact of approximately 1% to 2% on its consolidated site rental revenues from T-Mobile and Sprint due to the expected non-renewals related to the decommissioning of portions of T-Mobile's MetroPCS and Sprint's Clearwire networks.

On average, there are approximately six years of current term remaining on lease agreements with T-Mobile and approximately five years remaining on lease agreements with Sprint.