Communications Sales & Leasing, Inc. (NASDAQ:CSAL) Q4 2016 Earnings Conference Call - Final Transcript
Feb 23, 2017 • 08:30 am ET
Thank you [Operator Instructions] Our first question comes from Frank Louthan with Raymond James. Your line is now open.
Great, thank you. Looking at a couple things on the towers on the Hunt transaction going forward, what makes you expect to be selling off after the Hunt assets of lead versus dark fiber? And you mentioned that you expect to be expanding some of your tower portfolio in the US and give us an idea of kind of what you're thinking there. What's the opportunity and looking at that the number of towers you might be able to have over the next 12 months in the in the US versus in Mexico. Thanks.
Good Morning, Frank. So with regard to your first question, I think it's hard to say exactly what the mix will be between light and dark. But we do think the trend of both erase and backhaul moving from light to dark continues and we expect to see that we're certainly seeing that in the unity fiber footprint and we would expect to see that in the hunt footprint as well. And we definitely see that in the backlog -- of the sales backlog there so hard to know exactly what the mix is. And we do think that'll be an increasingly part of the pie going forward.
And with respect to towers in the US, we've said repeatedly that we think that's an attractive opportunity for us. For several reasons, one, towers are really nice compliment to our fiber business and they're certainly a nice compliment to our customer relationship. So we think that's an important, distinguishing characteristic of our strategy relative to others.
Secondly, we definitely believe that in Mexico and certainly in the US, there is going to be another wave of new towers builds particularly as we here in the US build out, 5G and also with with FirstNet coming with There's going to be opportunity there. But then thirdly, as it relates to us, we do think as being a new entrant in that in the tower space and not having an embedded base, we do have a lot of flexibility on how we can structure transactions versus others, particularly given our restructure, and our fiber business.
So when you put all that together, we think it's a very attractive opportunity. As Mark mentioned, in our guidance remarks, we have included some capital related to that through the balance of the year and I think that's a good indication of what we think the activity could be. And as we move forward and continue to evaluate this, over the course of the of the year, we'll have more say when, when more of this materializes. Since they're active RFP that you're that you're bidding on here and for towers in the US at the moment. We're in very active discussions with some of our existing customers related to towers.
Great. Okay, thank you very much.
Our next question comes from Greg Williams with