The wireless tower market has exhibited sustained growth, good operating leverage, and strong cash flow. The tower companies generate a majority of their turnover from leasing space on their towers. With most of the operating expenses of a tower being fixed, additional customers result in high cash flow for the tower companies.
Growth of tower industry is being driven by increase in wireless subscriptions. Subscriber demand of increased network coverage, improved voice quality, and non-voice services, has led to increase in revenues of wireless tower companies. The industry has been going through a phase of consolidation. Strategic acquisitions have given tower companies the capability to reduce operating costs and also offer a wide range of sites to the wireless carriers.
The three major tower companies are American Tower, Crown Castle, and SBA Communications. Many wireless companies also own and operate their towers. In this industry, the focus of competition is more towards acquiring customers for new site locations.
The report analyzes the wireless tower market. Apart from providing a competitive landscape of the market, the report also profiles the major tower companies, with a discussion of their key business strategies. It also analyzes the major market drivers and issues prevalent in the tower market.