FiberTower Receives Termination Notice
The Company recognizes that it is normal course of business for customers to make decisions to take down service based on their own particular circumstances or requirements. For this reason, the Company includes early termination liability in all of its contracts. The locations being terminated and being reviewed for termination represent a portion of the total FiberTower service contracted by this customer. Upon termination of all the services mentioned above, the customer's early termination charges will be approximately $2 million payable immediately.
FiberTower does not believe that these early terminations will have a material impact on the company's cash position in 2011.