SBAC
#Yep.
Yes, we are certainly watching and studying and working on all of that.
And if we can find something that we think is a good allocation of capital in that regard we definitely will do it.
I think 5G, in terms of our portfolio, which again is primarily a non-urban residential highway corridor to rural portfolio, I think you're going to see further equipment on the towers, but a continued reliance on macro sites.
The high-frequency spectrum that people are talking about, really most people do not think that will work outside of a dense urban environment.
And actually there was some good commentary on that from Neville Ray on T-Mobile's call is to what he thought about 28 GHz spectrum outside of dense urban markets, and he had some pretty negative things to say about its feasibility.
So we're watching it all very carefully, but I think for as long as there has been wireless, the laws of physics and how radio waves promulgate kind of drives and dictates things, and you just aren't going to get that outside of urban markets; any good promulgation with these high frequencies that folks are talking about.
So I think the true economically viable prospects there, you're not going to have 5G out along the highway corridors that runs only on 28 GHz.
And will not be economically feasible.
We think our towers will continue to be extremely important; more so as fiber hubs, as allocation points for back haul.
So we are actually pretty optimistic about where all of that takes us, and we definitely do not believe that systems and networks that run on 28 GHz or even some of the higher stuff that they've talked about is going to replace or even dilute the macro networks that is the bulk of our portfolio.
Our first preference, <UNK>, is to continue to flesh out the markets that we are in, and potentially expand into new countries in the Western Hemisphere.
There is plenty of opportunities to do that and build towers relatively easily at 5% per year portfolio growth.
So that is our first and foremost focus, and I will continue to be that for a while.
We will look and have looked on the other side of the ocean, keeping in mind though that our plan as it exists today, we're very confident will produce midteens AFFO per share growth compounded.
We want to see assets that are at least that good.
And historically the European assets have been lower growth yield-type assets that don't necessarily, or not even necessarily, that don't fit a higher capital appreciation-type model.
Yes, probably.
Probably.
Yes <UNK>, we have actually been operating we believe in alignment with all of the requirements of being a REIT already.
We just haven't made the formal election as of yet.
So in terms of structuring our operations, having what would be taxable REIT subsidiaries properly cordoned off and making sure that we meet all asset tests and income tests that would be required as a REIT, we have been doing all of that now for the last two years, actually, in order to allow us the flexibility to choose to convert whenever we would like.
And so it really is a matter of pretty much just making the election on the tax return.
So we could effectively do it even retroactively if we chose to, so long as we haven't yet filed our tax returns.
So the flexibility remains.
In terms of the PLR, we do not expect to look for a PLR.
We think it has been will determined, and there's plenty of president for tower companies as REITs.
You said it right up front.
It is around the ENT calculation.
We basically ---+ I think we disclosed on the last call that our current estimates around our accumulated earnings and profits, which are currently in a deficit position, is that they would move into a positive position in the latter part of 2017.
Most people say no.
It takes eight to 10.
And I'm not sure we necessarily would agree with the 20% mark.
You got me there, <UNK>.
I don't know the answer to that.
Yes, but we've been told by the equipment manufacturers that if they do that they are going to leave some performance on the ground, so to speak.
Performance will not be optimized by running AWS-3 through AWS-1 antennas.
Yes.
A fair number of internet of things players, machine-to-machine, I don't know if we've had any of the big guys who I think you're talking about on the fiber side.
But definitely there is some every day.
There's some interest from folks that are outside the traditional wireless world.
I would say it is probably spread, with Telephonic probably being the most steady and active, and any changes really as a result of the combined activity of the other three.
We are actually, and we're not projecting this, but it is logical to think that OIA, who is being watched closely by Anatel through all of this and now has a whole lot of better cash flow, actually picks up.
They certainly have the network needs for that.
So it's certainly possible.
We will be watching all that.
First, Mike, on the second one, some of that is driven by other things.
So for instance, our AFFO per share growth year-over-year was 10.5%, which is lower than last quarter.
But our services margins were very, very high last year.
And if you just adjusted for that one item alone and said it was flat from last year, the growth would have been 14%.
So I think when you take out ---+ there are other items of noise that perhaps could be adjusted out of there, and we're very confident that there's not a steady drop.
It is just an accumulation over the trailing 12 months.
And then the first question ---+
Sorry.
Discretionary CapEx.
We raised the discretionary CapEx by $35 million, I believe, at the midpoint.
Or maybe it was $40 million at the midpoint.
That is primarily made up of new acquisitions that we put under contract.
We did also have some decline in new tower build spending, but not a lot because a lot of the new tower build reductions that we are assuming are really just timing, and we're still incurring much of those costs.
So it's mainly new acquisitions put under contract offset by a little bit of decline in new builds.
You never, never say never, <UNK>.
But right now with Claros forming tele-sites ---+ although none of their Brazilian, or none of their the South American assets of gone into that yet.
And Telefonica's formation of Telsius, you're probably looking all carriers other than those for the most likely opportunities, and I don't want to get into rumors.
But there are definitely some rumors, some of which we think are more real than others, that there are some carriers down there that are looking to monetize their assets.
But it's really like it is everywhere else, where carriers, they need the money and they believe that the terms of the deal that they get and the additional OpEx that they take on is outweighed by the capital that they take in.
And that is really a different recipe for everybody.
So more will happen.
Do I think any of it is like next quarter.
No, I don't think that.
But I do think over time there will be additional carrier portfolios available.
Tony, we have time for one more question.
Great timing.
We appreciate everyone joining us this evening, and we look forward to reporting next quarter's results.
Thank you.
