The consolidation of AT&T and T-Mobile USA could lead to a decline in cell tower revenues generated from site leases. This could have cash-flow implications for wireless tower ABS bonds. AT&T said earlier this week that it entered a definitive agreement with Deutsche Telekom to acquire T- Mobile USA in a cash-and-stock transaction valued at approximately $39 billion.
AT&T will pay $25 billion in cash and up to $14 billion in AT&T stock, subject to adjustment. Deutsche Telekom will receive an approximate 8% interest in AT&T.