When I mention “TowerCos” (Tower Companies), real estate companies that are like an apartment building landlord… but for towers, I can see the confusion in people’s eyes. Essentially, the tenants (renters) are antennas that get mounted to the tower (apartment building). What’s the best way to visualize what one looks like? Well, just look at their advertising – they have towers for rent! Here’s an advertisement showing that they have acquired new towers in the following USA geographic locations.
The TowerCo industry itself comprises many companies across the globe. TowerCos already own 2/3rds of the world’s 3 Million towers. In the USA TowerCos own ~61% of the ~270K towers. In Canada, that figure is less than 5%.
TowerCo ownership, or companies that are exclusively real estate (do not sell telecom services), are a key indicator for broadband costs (e.g. cell phone data plans) since they offer a business model that promotes sharing and reduces costs. More about how the TowerCo business model reduces costs on my slideshare presentation entitled “Broadband Internet – The ‘Railroad of Our Era'”.
In the USA the top 3 tower companies listed on the New York Stock Exchange are:
- SBA Communications
- American Tower
- Crown Castle
All three operate as “Real Estate Investment Trusts” (REITs), further confirming that they are real estate companies. Collectively they own, lease and manage 95,000 towers and are worth $69 Billion. One of these top 3 companies, SBA, has moved into Canada with a subsidiary called SBA Canada. (@ early 2014) The other major TowerCo in Canada is Turris Corp.
Major data source for this post: