Friday, April 11, 2014
Volume 2 | Issue 70
$350 Million Possible Price for American Tower and Richland Deal
Earlier this week, we reported that a former employee of Richland
Towers had shared information concerning a deal between American Tower and Richland. Tom Taylor’s NOW, a daily newsletter
about the radio industry, reported that the price tag for Richland
Towers might be about $350 million. According to Tom Taylor,
“That would mean that American Tower now owns the towers serving Clear Channel stations in markets such as Cleveland and West
Palm Beach, because Richland bought them from Clear Channel
just over a year ago. Richland has specialized in tall towers located
in large markets – and apparently that portfolio now belongs or will belong to American Tower.” Neither company has confirmed this deal.
More Bars in More Places
Citing the “insatiable demand for data,” AT&T’s Sonny Pieper advised attendees at the South Wireless Summit on Wednesday about the company’s plans for small cells. They are targeting 40,000
small cells by 2015. The smartphone evolution has placed enormous demand for high-speed connectivity (Smartphones use 30x to 40x more data than non-smartphones). Small cells are an indoor
solution (largely in response to the data needs of iPhones) in a tool kit, which includes DAS and
WiFi. AT&T utilizes the technology for small to medium sized venues and businesses. AT&T recently
entered into an exclusive arrangement with Disney to provide a “robust wireless experience” in the
Orlando and Anaheim theme parks. The technology uses boxes smaller than a Domino’s box, 9.5
inches square weighing 4.5 lbs. The boxes utilize AT&T licensed spectrum exclusively, and an IP
backhaul. Good cell coverage has become a “must” for office tenants and small cells are a solution
for office building owners. One drawback: there is still work to be done on the handoff back to the
macro site when leaving a small cell environment.
New Jersey Radio Towers Demolished for American Dream Project
It’s sad to see such large structures being taken down but three 500-foot cellular
radio towers are being demolished in East Rutherford, New Jersey to make room
the long-delayed American Dream project at the Meadowlands Sports Complex.
The tower site will become the location of a 639,000 square-foot indoor water and
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amusement park. The demolition took place Tuesday night.
Hikers Voice Concerns About Possible Cell Tower
Hikers in New Milford, Connecticut are concerned that a cell phone tower will negatively affect their
views from the Appalachian Trail in Kent. AT&T submitted the proposal under the name Cingular
Wireless. A field review was conducted last week where a test balloon was flown from the proposed
site. The proposed 150-foot, monopole tower would be constructed on property owned by FirstLight
Hydro Generating Company. Panel antennas would allow for up to three additional carriers on the
tower. A trail guide from Danbury, Michael Cunningham, said "Amy's Lookout on the Herrick Trail
overlooks the proposed site for the cell tower. The Appalachian Trail is a federally designated national scenic trail. I ask that the council consider that in reaching its decision." (Source: News Times)
Some residents suggested that if the tower has to be built there then it should be painted a subtle
color to blend in with the surroundings or disguise it as a pine tree.
Seeking Alpha: Add Some Infrastructure to Your Portfolio
With consumers owning multiple wireless devices the need for wireless infrastructure is skyrocketing. The analysts at Seeking Alpha wrote about how you should add some infrastructure developing
companies to your stock profile. They explained that, “The investment thesis for infrastructure companies is hardly new. Basic services such as electric and water utilities, roads, ports, and communiInside Towers
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cations are vital to any economy, developed and developing alike, growing or contracting. It's true
that companies involved in the business of owning and operating such businesses can be capital
intensive, and rarely fall into the fast-growing category, often rendering them boring to many investors. But on the flip side, they typically have relatively low competition due to high barriers to entry,
experience no imminent threats to their business models, sometimes enjoy various government support and subsidies, and usually generate predictable cash flows and with them steady profits, which
are often returned to the shareholders in the form of dividends. In today's investment world dominated by the surge of ETFs, you can probably expect any reasonable investment thesis to be covered, especially if it's not new. Paraphrasing an early iTunes adage, there's an ETF for that. So
when it comes to infrastructure, unsurprisingly, a number of ETF choices are available. There are a
large number of MLP funds, popular for their high dividend yield, as well as utility funds regarded
also as a defensive sector.”
California Residents to Get Improved Coverage Thanks to New Tower at Airport
The Tehachapi airport in California has been around for quite some time,
since 1929 to be exact. So as you could imagine, it could use some renovations. One such improvement is a proposed 38-foot cell tower from AT&T.
The City of Tehachapi is in the process of finalizing negotiations with AT&T to
lease 566 square feet of property at the airport to build the new tower. The
tower will generate $2,000 a month for the airport and will be placed in their
Enterprise Fund. City Manager Greg Garret and Airport Manager Tom Glasgow anticipates that the construction of the new tower will begin by summer.
According to Glasgow, the project, which has been in negotiations since May
of last year, has already received approval from the Federal Aviation Administration. The contract between the City of Tehachapi and AT&T will be finalized after an on-site visit sometime this spring. Garret said "We're looking forward for better coverage for AT&T customers.” An additional cell tower will be placed in Cummings Valley, which is within
the county's jurisdiction and was approved by the Board of Supervisors a month ago.
Planning and Zoning Chairman Poses Question to AT&T and Verizon
Recently, the Planning and Zoning Commission in Shelton, Connecticut tabled a request by SAI
Communications to mount a cell tower with 12 antennas on the roof of a local building. Planning and
Zoning Chairman, Ruth Parsons, questioned why wireless carriers such as Verizon and AT&T are
putting up separate cell sites near each other, instead of sharing the same locations. “I prefer to see
them side by side,” she said of putting the equipment on the same tower. One of the easiest reasons
for not sharing towers is the original tower in question not being large enough. Towers are built to
certain specifications, you can’t just go loading them up with equipment and not expect them to fail.
So, as a result of their decision, Planning and Zoning Administrator Rick Schultz is compiling a list of
all cell sites in Shelton, with at least three new proposals in the works. In Shelton, roof-mounted towers are controlled by the city and the stand-alone towers are controlled by the state.
Local Arizona County Planners Approve Cell Tower
Planning and zoning commissioners gave their approval on Wednesday for a permit for a cell tower
north of Bullhead City, Arizona. The proposed 100-foot tower would be built on property that is currently zoned as multiple residential. Despite the multiple residential zoning, if you look at a satellite
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map of the location, houses are few and far between. It’s a lot different
image than you would think of when you hear “multiple residential area.”
The District 2 Board of Adjustment will be having a meeting on possible
drawbacks of the tower. There has been no word on the cost of the
tower or what company or carrier has submitted the proposal.
Australian Government Funding Prompts Call for Blackspot Info
The Australian Federal Government has set aside $100 million to build new mobile towers. Because
of this, users in remote and rural areas are being asked to register their blackspots on a national
register. Already 800 locations have been reported as problem areas but the Australian Communications Consumer Action Network believes the list is far from complete. ABC Australia said, “The network's CEO, Teresa Corbin, says with the areas of need far exceeding the money available to fix
them, it's vital government and the telecommunications sector get a complete picture before the rollout of new towers starts.” It’s a pretty interesting concept for dealing with blackspots and knowing
where towers will be added to help with the coverage problems.
CCI Announces First Quarter 2014 Earnings Release and Conference Call Schedule
Crown Castle International Corp. announced its plans to release its first quarter 2014 results on
Wednesday, April 23, 2014, after the market closes. In conjunction with the release, Crown Castle
has scheduled a conference call for Thursday, April 24, 2014, at 10:30 a.m. eastern time. The conference call may be accessed by dialing 480-629-9835 and asking for the Crown Castle call at least
30 minutes prior to the start time. The conference call may also be accessed live over the Internet
at http://investor.crowncastle.com. Any supplemental materials for the call will be posted on the
Crown Castle website at http://investor.crowncastle.com.
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