FCC Adopts Infrastructure Order

On Friday, October 17, the FCC adopted an Order to promote the deployment of wireless infrastructure, which had been a multi-year effort spearheaded by PCIA. This Order aims to facilitate the building and upgrading of wireless networks by updating the federal regulatory framework, streamlining regulatory compliance, and eliminating obstacles to rights-of-way access. “The FCC’s action will ease the ‘wireless data crunch,’ accelerate the build-out of world-class wireless networks, create U.S. job and economic growth, and strengthen America’s global competitiveness,” said President and CEO of PCIA Jonathan Adelstein. Continue reading here. 

4G Doesn’t Play Well With Others

With the mad rush to deploy 4G LTE networks, carriers might not have thought of the repercussions this technology could have on the existing equipment. While co-locating has often been a relief for tower companies looking to enhance service in the market without constructing a brand new tower, it might be causing problems. Michael LeClair of Radio World explained that 4G equipment and FM radio equipment aren’t working well together, and the cellular companies are complaining that their signals are experiencing interference. For the past few years, cellular and radio equipment have existed on the same towers in harmony. “That’s why it’s a bit disconcerting to hear about cell companies suddenly telling FM stations they were causing destructive interference to the latest 4G technology, and even requesting these stations be issued a Notice of Violation and fines. Continue reading here. 

Corvex Tells CCI to Hold Off on Verizon Tower Buy

Corvex Management recently wrote a public letter to Crown Castle proposing to change the company’s capital allocation strategy to reduce cost of capital and improve valuation. The management firm told CCI they should put off possibly purchasing Verizon’s tower network for $6 billion until it changes its capital allocation to improve shareholder value. “We are optimistic that many of you share our view that Crown Castle is a great business with exceptional growth opportunities in the years ahead,” Keith Meister, managing partner at Corvex wrote. “However, we also believe many of you share our frustration over the company’s stock price underperformance relative to peers and the market over the past 18 months, and the company’s persistent market discount relative to its peers and its own intrinsic value.”  Continue reading here. 

Crown Castle Potential Buyer for Verizon Towers

Recently, we reported that American Tower was the likely buyer for Verizon’s 12,000 cell towers; although, it’s possible that Crown Castle may make a bid for the carrier’s assets, according to the Houston Chronicle. Crown Castle is already the largest cell tower operator in the U.S. and they hope to keep that position with this potential purchase. The Houston Chronicle reported, “Speculation continued Monday on who would buy the towers, after discussions that began at industry conferences in September. Crown Castle said Monday it was still interested in Verizon’s towers.” Read more stories like this here. 

Au Revoir T-Mobile

Yesterday, Illiad announced that it has dropped plans to acquire a controlling stake in T-Mobile from Deutsche Telekom AG, The Wall Street Journal reported. This ends the four-month pursuit that would have brought the French telecommunications company into the North American market. Illiad’s first offer for 56.6% of T-Mobile, paying $33 per share, was rejected in July as it didn’t interest executives over at Deutsche Telekom. Illiad’s latest offer values T-Mobile shares at $36 apiece, including cash and part of the future value creation, which still didn’t appeal to Deutsche Telekom execs. T-Mobile has really turned the company around under CEO John Legere, but the company’s growth will plateau without the spectrum and scale that a merger would allow. Continue reading here. 

American Tower Likely Buyer of Verizon’s Towers

Seeking Alpha reported that American Tower is considering purchasing Verizon’s tower portfolio, which could net $6 billion for Verizon. This purchase would help American Tower’s scale and increase its exposure to Verizon as an anchor tenant. Jennifer Fritzsche, Senior Analyst at Wells Fargo, and her team spent the past week travelling with Tom Bartlett, CFO of AMT, and Igor Khislavsky, Investor Relations of AMT. She noted, “No surprise, management was asked about its desire to do more M&A. Bartlett indicated the first place it wants to do M&A is in the markets it is already in. The gorilla in the room was clearly AMT’s interest in the VZ tower portfolio (~13K towers). While management would not offer many specifics, they did indicate the company could be interested in the portfolio at the right terms and price but it would come down to math and terms of a potential deal. In our view, there is no question that the addition of this portfolio, which is one of the last carrier portfolios of size left, would add significant scale to AMT’s already large U.S. portfolio. Continue reading here. 

Kentucky Advocates for Public Policy Encouraging Infrastructure Investment

It’s not every day that you hear about agencies lobbying in support of wireless infrastructure. Our Zoning & Moaning section is filled with municipalities and residents who vehemently oppose the construction of towers. However, the Chamber Lea­dership Initiatives for Northwestern Ken­tucky, the West Kentucky Regional Chamber Alliance and the Southern Penny­rile Chamber Alliance are advocating for strong public policy that encourages infrastructure investment. The chambers of commerce in dozen of Kentucky communities recognize that this infrastructure allows for economic growth. The Eagle Post explained, “Just as important as an interstate, the broadband highway is critical to our region’s growth. Broadband technology is rapidly changing every segment of our society and affecting the way we all live and work; therefore, we must move quickly to make broadband capability improvements. Continue reading here.