Tower companies look internationally for diversity, growth opps

While the U.S. market remains the tower industry’s bread and butter, a number of the top tower infrastructure providers are expanding overseas as growth opportunities present themselves in less-developed markets.
SBA Communications Corp. (SBAC) has tower operations in the Western hemisphere, noted SBA CFO Brendan Cavanaugh, during a panel discussion at PCIA’s Wireless Infrastructure 2010 show. The company has a presence in Canada, owns towers in Panama, and is working in Costa Rica as that country prepares to auction wireless licenses. In order for SBA to enter a country, it must have solid land-use protections in place and it must be a growth industry with multiple operators. “The main reason to look internationally is it expands the playing field a bit. … We look for a greater return outside the U.S. to balance the increased risk.”
Costa Rica is required to open its telecommunications market as part of joining CAFTA (Central America Free Trade Agreement), said SBA CEO Jeffrey Stoops. SBA has been in the country for two years doing site acquisition and zoning work in anticipation of the country opening its wireless sector to private competition. Stoops noted that having a solid partner in the market, is key to success.
Crown Castle International Corp. (CCI) was one of the early international tower companies, owning properties in Australia. CEO W. Ben Moreland said Crown will expand internationally in countries that are financially sound.
American Tower Corp. (AMT) has tower assets in seven countries, including 7,400 in India, 2,800 in Mexico, 1,600 in Brazil and is pursuing opportunities in Chile and Peru. Steven Marshall, president of U.S. operations, said political stability, a good rule of law and free movement of capital are requirements for Amerian Tower to enter a country.
Mobilitie L.L.C. also is moving into Latin America, partnering with America Movil, said Gene Beall, executive VP, strategy and services.