Anterix Inc (NASDAQ:ATEX) Q1 2021 Earnings Conference Call - Final Transcript

Sep 16, 2020 • 04:30 pm ET

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Anterix Inc (NASDAQ:ATEX) Q1 2021 Earnings Conference Call - Final Transcript

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Presentation
Executive
Timothy Gray

to complete these transactions. Through August, we have agreements with approximately 20% of the nationwide 900 megahertz incumbents.

While much of our spectrum clearing work is focused on targeted territories with potential near-term customer opportunities, we continue to clear incumbents opportunistically around the country. Our clearing costs to-date continue to run in line with those of our total clearing cost estimates of $130 million to $160 million, which will mostly be spent over the next five years. As mentioned in the past, following the FCC's issuance of the Report and Order, we are now capitalizing all spectrum-clearing investments, which will increase the value of our intangible asset over-time.

Finally, I want to mention that the FCC's final rules allow us to get a credit for license exchanges with the American Association of Railroads or AAR. And in June, we began that transaction resulting in a $4.7 million loss we recorded in the quarter ending June 30, 2020. Post Report and Order, we moved forward with canceling the channel licenses necessary for the relocation of AAR existing operations so that the AAR is now able to move their operations outside of the 900 megahertz broadband segment. Due to this cancellation, we recorded the loss. However, going forward, we do expect to record gains as we turn in our narrow-band channels to the FCC to receive a broadband license. These gains will vary in size based on several factors, including the value of the licenses we are turning in, the value of the respective county and the amount of any anti-windfall payments associated with the license.

That concludes our prepared remarks. I'll now turn it back over to the operator for questions.