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Terms of Use | Privacy Policy © Copyright 2007 McLaren LLC |
Maximize Your Cell Site Value |
In recent years, consolidation of both the tower and carrier industries has reduced the field to a few large players. |
The net result of consolidation is that the combined companies are larger, more sustainable, and most importantly more profitable. Consolidation creates efficiencies by reducing overlap and overall operating costs; it also reduces competition in the marketplace, allowing for price increases. Many site owners have received letters citing this industry consolidation as a reason to sell their sites. For example, the Sprint/Nextel merger will result in the "decommissioning " of thousands of sites and now is the time to sell your site. In most instances, it is possible for the carrier to terminate the lease with relatively short notice. But will they actually do it? |
The tower industry, in particular, continues to attract sophisticated investors - hedge funds and venture capital firms. These investors expect high returns, and their extraordinary investment in the tower industry indicates that they have great confidence in the growth of this sector. There are over 200 million cell phone accounts in the United States. This large and growing market, coupled with the introduction of new services, will equate to additional revenue steams for the carriers and the need for greater capacity - more towers and more rooftop leases, not less. Wireless telecommunications is a constantly evolving market, and while the current optimistic outlook may not be permanent, serious consideration of the terms of any offer is warranted, to ensure the maximum benefit to the site owner. This is true if you are selling your lease or renegotiation an existing one. Realtel helps owners evaluate and fully capitalize on opportunities presented to them. What is a cell site worth? |
Trends |
Growth and Investment |
Consolidation |
There are a number of publications that report on trends of the wireless telecommunications industry. At this time we do not endorse a specific publication. Our intention is to offer some thoughts on the industry's future trends and the implications for leaseholders and property owners. |
Carriers |
Tower Companies |
Is there a risk of having your lease terminated? Yes, there is risk. But the major factors in determining site location, such as zoning, population density, and topograghy, do not change overnight. The overall outlook for the industry's future is bright. New technologies, new business models and more services are on the way. So along with risk, there are also opportunities. |