American Tower, along with peers Crown Castle International Corp. CCI and SBA Communications Corporation SBAC have been beneficiaries of the incredibly high growth rate of wireless data consumption.
The growth of wireless data and evolution of carrier networks continues to require large capital commitments by the wireless carriers. The ongoing wireless spectrum auction in the U.S. is a prime example of the type of multi-billion dollar expenditures required by these carriers to remain competitive.
Another Reason Carriers Monetize Towers
One way domestic wireless carriers such as AT&T Inc. T and Verizon Communications Inc. VZ, as well as international carriers like TIM Celular S.A. and Bharti Airtel Limited, can raise sorely needed capital is to sell and lease-back tower assets to companies that understand the complex governmental and operational issues these assets entail.
Why Nigeria?
Why International?
- There is an average of 1.5 customers per tower internationally, compared to 2.5 per tower in the more mature U.S. market.
- In India, 90 percent of Internet traffic is over mobile devices. AMT is adding about 100 towers per month from cash flow denominated in local currency.
- In Brazil, there are approximately 4,000 subscribers per site, compared to a U.S. average of 1,000. There is only a 20 percent smartphone penetration in Brazil -- similar to the U.S. in 2009.
- International portfolios of towers are typically five to 10 years behind the U.S. market.
3 Slides Illustrate - Compelling International Story
Bottom Line - 2014
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