Where will we be investing once we just can focus on competing with American Tower etc and not incinerating cash on fiber and small cells? Hurdle rate for a tower co is higher? So what makes the cut?
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There is no growth in towers. The international play is late, AMT and SBA already cornered those markets decades ago. New towers will increasingly not be needed, ultrawide band and other technologies like 6G that cover more pops per tower means you won’t need more. The idea that fiber was a distraction is insane, same as saying that towers was a distraction when it was getting off the ground (my 2 cents), maybe poorly managed from a margins perspective. And the talk about buying more land…please…you will be getting growth, just a higher valuation because of dilution and that’s it.
Do you really believe that a business that many companies depend on for their private connections lose $$$? Wait till you find out how much tower been cooking their books.
Fiber not managed by a real estate company will thrive again under more competant monkeys.
Sipping on my tea watching it burn.
They will invest in towers for 2-3 years in order to eventually sell their tower assets to a Private Equity firm then the PE firm who buys will do a mass layoff.
I see only three possible paths for growing the Tower business once Networks is gone: Go international (again), acquire other domestic tower operators, or be acquired.
Other thoughts out there?
Not just fiber and small cells is gone but venues are also going away. Venues should have been a part of the Tower portfolio. Stable long term users that are very sticky too us.
Buying half of the portfolio once the leases expire.