tylakewalker

Expecting Big Things from Wireless Infrastructure Stocks

Don't get me wrong. I am bullish on the tower companies. I just don't see SBA Communications as a better pick than Crown Castle or American Tower. Crown Castle also does consulting. I don't think it does them much good.
disclosure; long Crown

Expecting Big Things from Wireless Infrastructure Stocks

"The rest of their revenue comes from consulting and construction services, where they are hired by wireless carriers. This sort of consulting business could be a boon to the company with such aggressive expansion from the carriers."

Nope. Wireless consulting is a very low margin business. You are lucky if you make any money. Tower companies only do consulting to push the carriers on to their own towers. The rent income is where the money is not the consulting fees.

JP Morgan Initiates Coverage on Wireless Tower Companies

I like this business.
I believe demand for tower space will grow as end customers continue with a couple of key trends.
1) ditching the land line and making all calls wireless
2) expanding the role of the wireless phone into web browsing, file downloading and other applications that will increase the need for greater data capacity. carriers will have to add infill sites, add antennas to existing sites.

An infrastructure trend worth mentioning. Some carriers, most notably, Clearwire, are ditching the leased T1 lines and using microwave dishes for data backhaul. That is revenue lost by the local phone company and gained by the tower landlord.
The shift of resources continues to flow into wireless telecom and wireless internet. Just look at the FCC's taking of bandwidth from television broadcasting to wireless telecom.
long cci

Cell-Tower Fatalities: 3G iPhones at Any Price?

Erick

You are well informed on the wireless industry. This is huge problem that I can't talk about because of what I do for a living.