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The Big 5G Winners: Tower Companies



As such, Boingo's business model lines up relatively closely to those of tower companies like Crown Castle, which build and manage macro cell towers and small cells for cellular network operators like AT&T and Verizon.




The big 5G winners: Tower companies



Byrne acknowledged that there are a few communications infrastructure companies with global ambitions. For example, American Tower has been purchasing cell towers in Africa, while SBA has been active in Brazil recently. And ExteNet's Digital Colony is allied with Colony Capital, and those two investment firms have backed telecom deals stretching from UK to Canada to Brazil.


Philipp Nattermann: These are towers or smaller cell sites that you see on the side of buildings. On 5G, again, it depends on the take-up. It depends how much spectrum you get as an operator, et cetera. But we could talk an order of magnitude, so [up to] hundreds per square kilometer of cell sites.


The United States should also work with its partners to develop the nascent open radio access network, or Open RAN, architecture. While Huawei offers a full 5G stack, Open RAN allows multiple companies to supply different parts of a modular 5G network. The hope is that 5G networks built on an Open RAN architecture can better compete with Huawei on price. In addition, while no U.S. company offers an end-to-end 5G solution, they can better compete by specializing in individual components of a modular network, like end-user devices.


Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you touch, read, or hear about everyday, impact its stock price. Surprisingly, the founders of Trefis discovered that along with most other people they just did not understand even the seemingly familiar companies around them: Apple, Google, Coca Cola, Walmart, GE, Ford, Gap, and others. This might include you though you may have invested money in these companies, or may have been working with one of them for years as an employee, or have consulted with them as an expert for a long time. You can play with assumptions, or try scenarios, as-well-as ask questions to other users and experts. The platform uses extensive data to show in a single snapshot what drives the value of a company's business. Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals.


There is strong reason to believe that 2022 will be a pivotal time for American enterprises to take advantage of 5G opportunities as part of a horizontal business foundation. This paper explores the six opportunities companies can act on today to ensure their place among the 5G winners of tomorrow.


But no matter how fast or slow 5G rolls out, it's all good news for cell tower companies. Why? Because these firms act as the onramp for network coverage, no matter what generation. It's effectively an oligopoly that drives strong returns for the participants. Even better, the likelihood of future tower growth is slim; most 5G tech will use much of the same tower real estate as the existing 4G network.


"The biggest winner from 3G to 4G were the towers," says Reaves Asset Management's Weeks. "You didn't even have to pick the right one, you just had to throw a dart. It's one of the best business models ever. The existing inventory of towers in the U.S. is the inventory in the future. You can't really build new towers because of zoning and regulatory issues."


"Thousands of companies across the world are applying NVIDIA AI to create cloud-connected products with AI services that will transform the world's largest industries," CEO Jensen Huang said in a release.


Remember: This isn't a one-and-done event. A study (opens in new tab) by Cambridge's Edward Oughton and the Universidad Politécnica de Madrid's Zoraida Frias estimates that 5G won't even reach 90% penetration until 2027. No matter how long the rollout takes, that leaves a long runway for companies benefitting from the trend, and a company selling products to suppliers of mobile devices on a royalty basis will likely continue to be a big winner, even if the market has already realized it.


The widespread use of cell phones in recent decades has led to a large increase in the number of cell phone towers (also known as base stations) being placed in communities. These towers have electronic equipment and antennas that receive and transmit cell phone signals using radiofrequency (RF) waves.


Cell phone base stations can be free-standing towers or mounted on existing structures, such as trees, water tanks, or tall buildings. The antennas need to be high enough to adequately cover a certain area. Base stations are usually from 50 to 200 feet high.


Cell phones communicate with nearby cell towers mainly through RF waves, a form of energy in the electromagnetic spectrum between FM radio waves and microwaves. Like FM radio waves, microwaves, visible light, and heat, they are forms of non-ionizing radiation. This means they do not directly damage the DNA inside cells, which is how stronger (ionizing) types of radiation such as x-rays, gamma rays, and ultraviolet (UV) rays are thought to be able to cause cancer.


RF waves from a cell phone tower antenna, like those from other telecommunication antennas, are directed toward the horizon (parallel to the ground), with some downward scatter. Base station antennas use higher power levels than other types of land-mobile antennas, but much lower levels than those from radio and television broadcast stations. The amount of energy from RF waves decreases rapidly as the distance from the antenna increases. As a result, the level of exposure to RF waves at ground level is much lower than the level close to the antenna.


At ground level near typical cellular base stations, the amount of energy from RF waves is hundreds to thousands of times less than the limits for safe exposure set by the US Federal Communication Commission (FCC) and other regulatory authorities. It is very unlikely that a person could be exposed to RF levels in excess of these limits just by being near a cell phone tower. 2ff7e9595c


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