Yes. It was a bad decision on CCI's old executive team's behalf to litigate—perhaps just one more reason why CCI has new board members and a new CEO. The public tower companies stopped being carrier-friendly once they stopped chasing US build-to-suit opportunities and focused on trying to maximize the rent at every tower site. Those actions spawned Tristar Investors and Tillman Infrastructure. It started the build-to-relocate tower development business model in the US.
Whether the decision to focus on driving higher rent on existing towers vs. building and operating more towers for the carrier was a good decision or not remains to be seen. But suing your tenants for ticky-tacky crap like this isn't a good part of any business model and will further drive carriers to pursue non-public tower company towers in the future.
Back in the day the major carriers decided to sell off their tower assets. If I remember right, it started when SprintPCS tower division closed down and sold their assets to SBA, American Tower, or CCI ( I don’t remember which) because it was too much work to manage towers. Then Verizon did the same thing. Verizon’s reasoning was, “we are not a tower company, we are a wireless service provider”. And the cash generated by the sale of towers and other wireless infrastructure was then used to fund network expansion. So if carriers are complaining now about ever increasing rents, as they have every right to, it seems that they created this situation by selling their assets to tower companies.
All that for "door swing"
Agreed with the Jury--what about HVACs that stick out beyond the platform? but are not connected to the ground or lease area?
Based on the article's findings, I agree with the jury's decision. Historically, tower companies prefer to avoid public conflicts. Crown’s attitude can seem petty to outsiders, and I don't see any advantage for Crown even if they had won. Dish has co-located on about 3,300 sites, planning to expand to 20,000, which is half of Crown's total towers. This represents a significant potential for new business, something Dish would want to avoid based on this lawsuit. Per the article, even American Tower wanted nothing to do with this dispute, understanding that no good would come from it.
In the past, tower companies consistently increased rents through tenant amendments, ballooning rents everywhere including rural areas. Early MLAs were highly beneficial to tower companies, driving annual growth and
site commitments. A comparison of historic stock prices between AT&T, Verizon, and tower companies over the last 15 years shows how much the tower companies were getting the better of the carriers.
However, things slowly started to change as carrier tower portfolios were sold, securing low market rents with a 2% escalator. Developers like Tillman entered the market, seemingly to gain leverage for the carriers in MLA negotiations. They targeted high-rent rural sites for zoning ease. Carriers could finally start to control rents for seemingly forever at some of these sites that the tower developers built. It also forced the tower companies to offer holistic MLAs which wouldn’t penalize the carrier if they were within their designated tower mount height on any additional equipment installed.
It's rare for tower companies to announce major layoffs due to their historically profitable nature. There are many factors for the decline in tower company stocks but one can’t overlook the carrier’s slowdown in work. Now that might have more to do with the economy but it’s another sign of how the carriers can look to control costs even if unintended.
#celltowerleasing#telecomindustry#celltowerbusiness#wirelessinfrastructure
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11moBack in the day the major carriers decided to sell off their tower assets. If I remember right, it started when SprintPCS tower division closed down and sold their assets to SBA, American Tower, or CCI ( I don’t remember which) because it was too much work to manage towers. Then Verizon did the same thing. Verizon’s reasoning was, “we are not a tower company, we are a wireless service provider”. And the cash generated by the sale of towers and other wireless infrastructure was then used to fund network expansion. So if carriers are complaining now about ever increasing rents, as they have every right to, it seems that they created this situation by selling their assets to tower companies.