Commerce Secretary Urges Lawmakers to Pass U.S. Chip Funding

By Leslie Stimson, Inside Towers Washington Bureau ChiefCommerce Secretary Gina Raimondo pushed lawmakers at a Senate Commerce Committee hearing Wednesday to advance legislation to boost U.S. chip manufacturing. She explained the Commerce Department will work with states to streamline broadband infrastructure permitting.  

The administration’s FY2023 budget request includes $11.7 billion for the Commerce Department, an 18 percent increase above the fiscal year 2022 enacted level, according to her testimony. Raimondo said the document calls for $97 million to strengthen domestic supply chains and help small and medium-sized manufacturers improve their competitiveness. It also proposes $16.1 million to augment the Commerce Department’s data tools and expertise to support more secure and diversified supply chains. Continue Reading

American Tower Sees Accelerating Global Expansion

By John Celentano, Inside Towers Business Editor

American Tower (NYSE: AMT) continues to bolster its position as the world’s largest independent tower company. With significant new tower builds during the quarter, along with some small acquisitions and site sales, the company ended 1Q22 with a total of 219,266 towers worldwide. During its quarterly earnings call, AMT reported that total property revenues, including contributions from both towers and data centers, increased 22 percent on a year-over-year basis to $2.6 billion. Adjusted EBITDA grew 13 percent to $1.6 billion while AFFO came in at $1.2 billion, up 7 percent YoY. The company attributes the strong growth to global secular trends for mobile data consumption and continued heavy capital expenditures by its mobile network operator tenants around the world as they install equipment to activate new spectrum. MNOs in the U.S. and Europe are focused on new 5G networks while 4G coverage and densification continues apace among MNOs in developing markets. Internally, AMT is on track with its construction program to build 6,000-7,000 new towers in 2022. The company completed 1,437 new builds in 1Q22 across its global footprint with the majority split between India and Africa. Continue Reading

AT&T Awarded $15 Million Contract to Modernize Army National Guard Network

AT&T announced yesterday it was awarded a task order to modernize GuardNet, the command and control network that allows Army National Guard soldiers to access the internet, connect with other networks and databases, and support training and mission planning and execution.

The task order, awarded by the Defense Information Systems Agency’s Defense Information Technology Contracting Organization, is valued at $15 million over 11 years if all options are exercised. It was awarded via the General Services Administration’s Enterprise Infrastructure Solutions contract. Continue Reading

SBA Communications Corporation Reports First Quarter 2022 Results

SBA Communications Corporation (NASDAQ: SBAC) yesterday reported results for the quarter ended March 31, 2022.

Highlights of the first quarter include:

• Net income of $188.3 million or $1.72 per share
• AFFO per share increased 14.7 percent over the prior year period
• Total revenue of $619.7 million, a 12.9 percent growth over the prior year period
• Repurchased 1.3 million shares in the first quarter at an average price per share of $332.00

In addition, the company announced that its Board of Directors has declared a quarterly cash dividend of $0.71 per share of the company’s Class A Common Stock. The distribution is payable June 14, 2022 to the shareholders of record at the close of business on May 19, 2022.

“We are off to a very strong start to 2022,” commented Jeffrey A. Stoops, President and Chief Executive Officer. “We produced double-digit growth in AFFO per share while operationally executing at a very high level. Our cash flows continue to grow, providing multiple opportunities for the creation of additional shareholder value.” Continue Reading 

Carriers Could be Required to Submit WEA Performance Reports

By Leslie Stimson, Inside Towers Washington Bureau Chief

As Wireless Emergency Alerts (WEA) celebrate their tenth year, the FCC proposes to strengthen their effectiveness through carrier reporting after each alert, similar to the kind of reporting that radio and television stations are required to provide for the Emergency Alert System (EAS). Currently participation in the WEA system is voluntary. However, Commissioners last Thursday voted on a Notice of Proposed Rulemaking, that if approved as proposed, would require carriers to provide public reports to the FCC on the alerts’ reliability, speed, and accuracy. From a National Weather Service warning about an approaching hurricane, to AMBER alerts that bring a child home safely, in the past decade emergency managers have sent nearly 63,000 alerts aimed at keeping the public safe and informed, note FCC officials. Continue Reading

Crown Castle’s Long Growth Runway

By John Celentano, Inside Towers Business Editor

Crown Castle (NYSE: CCI) sees a long, steady growth ramp in site leasing revenues. The company anticipates that its mobile network operator tenants will continue to expand their network coverage and capacity in major markets with towers, small cells, and fiber for years to come. CCI points out that its MNO customers have invested about $200 billion between acquiring spectrum licenses and investing in 5G network infrastructure over the last four years.  The company expects MNO investment and expansion activity to continue at a high level through 2025, as each MNO builds macrocells on towers, then densifies their networks in urban centers with small cell deployments. Continue Reading

Owners Must Keep Tower Lighting Updated Until Structure is Dismantled

By Leslie Stimson, Inside Towers Washington Bureau Chief

The FCC issued an order and citation to Massey, Wood and West, Inc. and MWW Realty Corp. concerning several tower lighting violations. The case began on May 12, 2020 when a consumer complained about an unlit tower for antenna structure number 1020743 in Mechanicsville, VA. Finding that no Notice to Air Missions (NOTAM) had been issued for the tower, the FCC Operations Center asked the FAA that same day to issue a 30-day NOTAM for the structure. An agent from the FCC’s Enforcement Bureau’s Columbia, MD field office investigated and extended the NOTAM three times. During a visual inspection on November 23, 2020, the agent saw the tower, which was above 200 feet AGL, was located at the ASR coordinates mentioned above. It was painted and had a lighting system installed. But on February 2, 2022, another agent from the field office saw that the lights were not lit after sunset. Continue Reading

Chipmaker Warns Shortage Could Extend into Next Year

By Leslie Stimson, Inside Towers Washington Bureau ChiefTaiwan Semiconductor Manufacturing Co., which says it’s the world’s largest contract chipmaker, says the global chip shortage is likely to continue, with tight production capacity for all types of chips. TSMC (NYSE: TSM) expects manufacturers to stock up more than usual on chips and other components after recent events disrupted the global supply chain, Chief Executive C.C. Wei said Thursday during its Q1 2022 quarterly earnings call, according to The Wall Street Journal.

Russia’s invasion of Ukraine and the COVID-19 lockdown in Shanghai, a semiconductor production hub, are the latest factors pressuring the global supply chain. TSMC’s suppliers are struggling with labor, component and chip constraints due to the pandemic, the company said. That includes its chipmaking equipment suppliers, which have had trouble delivering tools to TSMC since the beginning of this year, Wei said. Continue Reading

Tower Climbers at QualTek Petition for Union

Tower Climbers at QualTek filed a petition late last week with the National Labor Relations Board for a union election in Henderson, NV. The filing is for admittance into the Communications Workers of America (CWA) union. Inside Towers was sent an internally-circulated letter from the desk of Yonah Diamond, CWA’s Organizing Coordinator. 

“This is a huge deal,” Diamond told his members. “This will be the first shop that moves forward with winning formal union certification. Once they win their election, they will be able to sit down with the company and bargain their first collective bargaining agreement.”

Diamond said the CWA will be reaching out to QualTek management to give them a chance to address its tower workers, although, he said, the vote was “near unanimous.” 

A QualTek representative said the company would provide no comment on the announcement. Continue Reading

T-Mobile Sues Florida School Board Over 2.5 GHz Licenses

By J. Sharpe Smith, Inside Towers Technology Editor

T-Mobile, through its subsidiary NSAC LLC, has sued the School Board of St. Lucie County, FL for breaching provisions of a spectrum lease agreement for frequencies in the Educational Broadcast Service at 2.5 GHz by attempting to sell them to another company. The school system holds two licenses to use eight channels of spectrum in the Fort Pierce, FL area. In November 2021, the Board informed NSAC that it had received an offer for the licenses from a third-party competitor to NSAC, WCO Spectrum LLC (WCO), for $6,795,000. Three months later, in February 2022, the Board informed NSAC that it had received another offer from WCO for $7,550,000. Continue Reading

Global Tower Company Rankings Update

By John Celentano, Inside Towers Business Editor

Year-end 2021 tallies of independent tower companies around the world reflect the demand for wireless infrastructure as their carriers respond to secular tailwinds of mobile data demand, IoT and coverage in urban and rural markets. Tower counts among all companies have grown year-over-year in high single-digit or low double-digit range through organic growth, acquisitions, and build-to-suits.  Some acquisitions are from other tower companies but mainly from MNOs divesting passive tower assets to raise capital for network modernization and expansion. Towercos become the landlords while MNOs remain as tenants. Tower tenancies are in the 1-2 per tower range, higher in some markets like North America. Continue Reading

Deutsche Telekom Buys More T-Mobile US Shares for $2.4 Billion

Deutsche Telekom  (OTCMKTS:DTEGY) announced it has bought additional shares in T-Mobile US yesterday from Softbank for $2.4 billion. According to Reuters, the move brings CEO Tim Hoettges closer to his goal of securing direct control over the U.S. telecom operator. The acquisition of the 21.2 million shares was made via a call option that raises Deutsche Telekom's stake in T-Mobile US to 48.4 percent, the German company said on Wednesday.

In 2020, Deutsche Telekom agreed to pay Softbank a fixed price of $101.46 per T-Mobile US share for 11.8 million of the shares. The rest of the deal would be based on the stock's weighted average price. The average price for the deal was $113 per T-Mobile US share, compared with Tuesday's closing price of $131.44. Reuters said Deutsche Telekom used part of the roughly $4.3 billion it received from the sale of its T-Mobile Netherlands business to pay for the shares.

Beyond Greenwashing: Wireless Industry Leaders Choose Sustainability

By Martha DeGrasse, Inside Towers Contributing Analyst

Sustainability is quickly morphing from a compliance issue to a strategic advantage for companies across industries, including wireless. Employees, customers, and shareholders are all telling corporations to protect the planet, and they’re choosing to do business with those that listen. The home page of Verizon’s investor relations site features a 50-minute video on the company’s climate action focus, presented by CFO Matt Ellis. AT&T CEO John Stankey named sustainability ahead of equity, education and universal internet access when listing AT&T focus areas in his annual letter to shareholders. And T-Mobile US recently announced it has already offset 100 percent of its annual electricity use with investments in renewable energy. Continue Reading

Fixing “Rip & Replace” Funding Shortfall is Key Talk at CCA Show

 

By Leslie Stimson, Inside Towers Washington Bureau Chief

CCA President/CEO Steve Berry talks to IT as the Mobile Carriers Show opened yesterday in Tampa   Sessions begin and the exhibit floor opens today at CCA’s Mobile Carriers Show in Tampa, FL. Tampa is a new location for the conference and pre-registration looks to be “one of the largest” since 2019, according to CCA President/CEO Steve Berry. The $3.7 billion funding shortfall for the “Rip & Replace” reimbursement program is a big topic to be discussed at several events, Berry tells Inside Towers in an interview from Tampa. CCA members have been to Capitol Hill, explaining to lawmakers why more money is needed for smaller carriers to remove untrusted gear from Huawei and ZTE while keeping their networks operational at the same time.  “We have a lot of support,” Berry says, hoping the House and Senate quickly find a way to get more funding passed. However, “We’re getting close to an election year, and there’s only a few vehicles” that would work for funding of this size, he explains. Failure to receive the rest of the needed funds would mean some small carriers will need to leave the business, Berry fears. Continue Reading

t Will Be A “Long-Haul” Before Automated 18-Wheelers Are Road Ready

Self-driving vehicles are coming at some point, helped along with 5G and AI technology. Unions representing the trucking industry cite studies showing that autonomous 18-wheelers could eliminate up to 50,000 jobs, reported Fortune. Conversely, supporters of automated trucking technology claim it’s a remedy for growing shipping demands, greater safety on the road, and overall efficiency.

Unions believe automation means a negative impact on the job market, but experts say truck drivers won't be put out of work by robots. According to Fortune, human drivers will still need to be behind the wheel in cities and urban environments. What will change are the types of industry jobs available to workers. 

Advocates say if the tech is “good enough,” it could mean trucks will operate 24/7 as they criss-cross the country. Today, regulations limit human truck drivers to eight hours of work before taking a break and a maximum of 11 hours of daily drive time. 

Recruiting long-haul truckers has become increasingly difficult in recent years due to the "high-stress nature of the job, hours away from home, and safety hazards," notes the author. In 2021, there were 80,000 fewer drivers than would ideally be available to meet demand, according to the American Trucking Associations. Continue Reading

U.K. Trial Delivers Fiber to the Home Using Water Pipes

By J. Sharpe Smith, Inside Towers Technology Editor

A trial deploying fiber optic cables via drinking water mains was launched this week in pipes in England with potential to connect up to 8,500 homes and businesses, as well as 5G antennas, according to the U.K. Department for Digital, Culture, Media & Sport.  Negating the need to dig up roads, the trial promises to accelerate the rollout of broadband as fiber-optic cables are deployed through 10.5 miles of live drinking water mains between Barnsley and Penistone in northern England.   “Civil works, in particular installing new ducts and poles, can make up as much as four fifths of the costs to industry of building new gigabit-capable broadband networks,” Digital Infrastructure Minister Julia Lopez said in a press release. “The Fiber in Water scheme will demonstrate what could be a greener, quicker and more cost-effective way of connecting fiber optic cables to homes, businesses and mobile masts, without the disruption caused by digging up roads and land.” Continue Reading

House Gives Bipartisan Support to Two Telecom Bills

By Leslie Stimson, Inside Towers Washington Bureau Chief

The House voted overwhelmingly Tuesday to pass two bills to strengthen communications networks and improve public health data. The measures now go to the Senate. Rep. Gus Bilirakis (R-FL) introduced H.R. 2501, the “Spectrum Coordination Act.” It would require the National Telecommunications and Information Administration and the FCC to update their two-decade-old memorandum of understanding on spectrum coordination. According to the text, the legislation is meant to “(1) improve the process for resolving frequency allocation disputes in shared or adjacent spectrum bands, (2) ensure the efficient use of spectrum, and (3) establish reasonable timelines for information exchanges between the Administration and the Commission.” The House passed the measure by a vote of 418 to 6. Continue Reading

Ukrainian People Fight Isolation Without Cell Towers

By J. Sharpe Smith, Inside Towers Technology Editor

Kyivstar, a mobile and internet service provider in Mariupol, located in southeast Ukraine, had 148 cell towers up and running when the Russians invaded the eastern European country. The wireless signals they transmitted were a critical lifeline, connecting loved ones and providing information to citizens. But working cell towers are becoming scarce. “One by one all these base stations went down,” Volodymyr Lutchenko, Kyivstar’s chief technology officer, told Wired Magazine. “First of all, because of the power connection, then because of the physical damage.” Now, with a death toll that stands at 5,000, and 90 percent of buildings damaged, 170,000 people in Mariupol are trapped, with no way to communicate to the outside world through traditional methods. But if the Ukrainians have taught the world anything, it is that they are a resourceful and resilient people. Using apps downloaded from the internet, they are communicating using the bluetooth signals on their cell phones to create mesh communications networks. Continue Reading

FCC Settles Verizon, PEPCO Pole Attachment Fight

By Leslie Stimson, Inside Towers Washington Bureau Chief

Verizon Maryland and electric utility Potomac Edison Company (PEPCO) asked the FCC to review certain aspects of a November 2020 ruling. Back then, the Commission granted part of a complaint that Verizon filed concerning a Joint Use Agreement containing rates, terms and conditions for each party’s use of the other’s utility poles. Under the JUA, PEPCO charges Verizon rates that are “significantly higher” than the rates PEPCO charges competitive local exchange carriers and cable providers to attach to the same poles, according to the FCC. The carrier alleged the pole attachment rates it pays to PEPCO are unjust and unreasonable. The Commission agreed and prescribed a maximum rate PEPCO can charge Verizon in Maryland. It also said Verizon was due for a refund for a three-year period and told both to negotiate that. Verizon sought clarification on two points and PEPCO filed a Petition for Reconsideration. The agency granted part of what Verizon wanted but denied other portions of Verizon and all of PEPCO’s requests. Continue Reading

Tower Leasing Drought Ends as Spectrum Flows Out

By J. Sharpe Smith, Inside Towers Technology Editor

The tower industry went through a number of years from 2014 to 2019, where leasing and tower builds were pretty slow, Bob Paige, Vertical Bridge Executive Vice President of Mergers and Acquisitions and Corporate Development, said during the Tower Panel presented by Vogue Towers at last week’s South Wireless Summit in Nashville. But that is over now. “Last year, we and the public tower companies had a record year.  We're certainly off to a good start this year as well,” Paige said. The formula for this uptick is simple, according to Paige. “When the carriers spend $120 billion on spectrum, which they did over the last three years, they are going to put the 180 MHz of spectrum that they acquired to work,” Paige said. Continue Reading

New FCC Broadband Maps Coming This Fall

By Leslie Stimson, Inside Towers Washington Bureau Chief

FCC Chairwoman Jessica Rosenworcel told lawmakers Thursday new agency broadband coverage maps will be ready this fall. The maps are key to NTIA’s distribution of $42.5 billion in broadband infrastructure grants. Rosenworcel and fellow Commissioners Brendan Carr, Geoffrey Starks and Nathan Simington testified before the House Communications and Technology Subcommittee. It was the first FCC oversight hearing in a year and a half, and the first since Rosenworcel was able to remove “interim” from her title.   Ranking Member Bob Latta (R-OH), asked Rosenworcel about the timing of the maps, noting that she told the Senate in March 2020 the agency could improve the maps within six months. Now, he said, the FCC says providers have been asked to submit their coverage information to the Commission by September 1. Continue Reading