While many independent tower companies grapple with the issue of whether to offer construction
services as part of a one-stop shop, one company believes it can succeed purely in the tower construction
arena.
Formed by a 1994 merger between Burnup & Sims and Church & Tower, MasTec Inc. has a nearly 75-year
history constructing infrastructure. The company works in the telecom/cable, network services, energy and wireless
arenas.
MasTec did a patchwork of installations for wireless carriers during the early stages of the cellular buildout,
mostly in small clusters. Within the last four years, however, MasTec has consolidated its wireless activities into a unit
that will focus purely on the wireless industry-primarily personal communications services and emerging
technologies.
Wireless activities accounted for about 10 percent of MasTec’s 1997 revenues of $703.4 million, and
that percentage is expected to grow.
“Prior to the inception of MasTec Wireless Services, wireless activities
hadn’t been in a central and focused line of business,” said Jerrad P. Jasper, vice president of MasTec Wireless
Services. “We wanted to be prepared for the influx of PCS technology by consolidating talent and expertise as it
relates to wireless buildout.”
MasTec Wireless provides a range of services, including construction
management, site acquisition, program management, equipment installation and tower maintenance to carriers and
tower companies. The company has completed 25 acquisitions since 1996 and has formed partnerships to bolster its
core strengths. For instance, MasTec has a teaming agreement with Arcadis, one of the nation’s largest engineering
firms, to provide for the design and construction of the most cost-effective facilities possible.
Although the
company considered expanding into the build-to-suit arena early on, it opted instead to focus on its core
strengths.
“We thought it would be a natural for mitigating the industry’s need for infrastructure capital-a
commodity desperately needed by most wireless carriers today,” said Jasper. “Real estate developers and
investors have done it for years, so why not tower owners?
“The principals of the deal are the same-reduce
infrastructure cost by leasing rather then owning,” continued Jasper. “Today it seems like everyone with a
checkbook and a group of investors is involved in built-to-suit.”
While not involving itself directly in build-to-
suit, MasTec felt it still could provide a service to the companies that were becoming involved in build-to-suit, in
addition to its traditional carrier clients.
“We were not interested in it for the investment opportunities, but
rather for its tremendous opportunity to build and maintain more towers,” said Jasper. “Rather than
compete with the many companies we call clients, we elected not to get into build-to-suit as a ‘built-to-suit’
vendor.
“Our rationale was that these BTS companies still need construction and site development
services,” continued Jasper. “I don’t think many of them are prepared to self perform these services because
they are ultimately in it to own and manage towers.
“Our primary clients are still wireless carriers, but we
expect that our client profile will change to more built-to-suit companies and tower owners as the industry shifts from
own to lease,” he said.
MasTec believes another strength is its approach to the difficult zoning process, which
has plagued the industry during the last few years.
“We pride ourselves as specialists in our particular
field,” said Jasper. “We as a company steered clear of the ‘jack-of-all-trades’ role.”
For example,
MasTec employs attorneys and certified planners that perform zoning and leasing services for the company. Wireless
carriers often don’t have room in their budgets to keep attorneys or certified planners on staff, he said.
“When
siting issues escalate, as they often do, they are in the hands of a more seasoned and savvy person,” said Jasper.
“It levels the playing field.”
Jasper said MasTec recognizes demand for new towers will begin to decline
domestically in the future, and the company plans to shift its focus to providing upgrade and maintenance services. For
example, when new equipment-such as a cable or antenna products-comes out, MasTec hopes to be the company
carriers and tower companies look to for upgrading that equipment.
“You can’t be everything to
everyone,” said Jasper. “We want to focus on what we do best and find ways to do it better.”
