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  "documentTitle": "American Tower (AMT)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2013-07-17 00:00:00",
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  "notes": "Includes a quote from Jay Brown (Crown Castle) regarding international market risk/reward.",
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      "text": "In practice when AMT's overseas above market leases have come up for renewal, the carriers have usually negotiated the rents downward.",
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      "text": "EBITDA Growth: -17.6%",
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      "text": "the YOY changes in Year 11 revenue and EBITDA, assuming in Year 11, the tenants per tower ratio grows by 0.1 (to 2.0).",
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      "text": "AMT will likely respond to the foregoing by pointing out that its leasebacks provide for renewal rates at the above market rates. We understand that it is rare that a carrier renews above market. The carriers understand that they have repaid the loan, and are reluctant to pay more than market.",
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      "text": "Overseas, the leverage is firmly on the carriers' side. This is an important point for US investors to understand not only in the context of the de facto lending business, but in all aspects of the international business. The third party tower operator came into being in the US right at the transition from analog to digital, and before the cell phone became ubiquitous. The transition to independent operators happened quickly, and in their haste, the US carriers ceded too much leverage to the tower operators. As we discuss infra, this pendulum is now finally swinging back the other way. However, we believe that foreign carriers have learned valuable lessons at the expense of the US carriers about how to work with the tower operators and not lose the advantage. Jay Brown of Crown Castle, Inc. (NYSE: CCI) hit the nail on the head when he talked about overseas moats:",
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      "text": "In practice when AMT's overseas above market leases have come up for renewal, the carriers have usually negotiated the rents downward. AMT might get some build to suit business in return for ignoring the specified renewal rate. AMT cannot muscle the overseas carriers around - it has too few towers in these markets, and is dependent on a limited number of customers. That factor is particularly acute with Telefónica and American Movil, which are its customers in multiple markets. If push really came to shove, we have no doubt that the carriers would win, and we believe AMT knows that. Cellular phone service is a utility, and particularly given that most carriers in AMT's markets are struggling, consumers and governments recognize that if costs are high,",
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      "text": "\"...as we look at emerging markets, we just have not gotten comfortable that the moats around the business are anywhere close to as good as the U.S. and the credit quality of the tenants who are willing to co-locate or to sell their assets in those markets, at least up until this point has not been, to us, has not had the right risk reward ratio there.\"",
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      "text": "…as we look at emerging markets, we just have not gotten comfortable that the moats around the business are anywhere close to as good as the U.S. and the credit quality of the tenants who are willing to co-locate or to sell their assets in those markets, at least up until this point has not been, to us, has not had the right risk reward ratio there. — Jay Brown, CFO, SVP Crown Castle International",
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      "text": "54 Jay Brown, CFO, SVP Crown Castle International at Deutsche Bank Securities Inc. Media and Telecom Conference, Palm Beach Apr 11, 2011.",
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      "text": "Year 11 Revenue Growth: Market 8.4%, 1.25x Market -4.2%, 1.5x Market -14.2%. Year 11 EBITDA Growth: Market 9.9%, 1.25x Market -5.8%, 1.5x Market -17.6%.",
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