We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Crown Castle (CCI) Planning to Expand Small-Cell Operations
Read MoreHide Full Article
Leading wireless tower operator and real-estate investment trust Crown Castle International Corp. (CCI - Free Report) has decided to double its existing small-cell network within the next two years. According to a report by Guggenheim Equity Research, the company will spend around $1.2 billion to deploy 25,000 new small-cell nodes over the next 18-24 months. At present, small-cell networks are in high demand from wireless service providers to improve coverage and increase capacity.
Recently, Crown Castle acquired privately held Wilcon Holdings LLC., a premier service provider of dark fiber, which will augment the wireless tower operator’s small-cell backhaul. Management is gradually developing small-cell networks to supplement the macro site tower business. After the Wilcon acquisition, Crown Castle will attain ownership rights of over 28,000 route miles of fiber.
Crown Castle is a leading wireless communication tower operator in the U.S. It has approximately 40,000 towers and 29,000 route miles of fiber supporting small cells. More than 90% of its quarterly revenues come from wireless service providers like Verizon Communications Inc. (VZ - Free Report) , AT&T Inc. (T - Free Report) and T-Mobile US Inc. (TMUS - Free Report) . It has acquired 9,700 wireless towers from AT&T and taken over 7,200 wireless towers of T-Mobile US.
Crown Castle’s ongoing efforts in repositioning itself from a tower company to a fiber provider (focused on small cell opportunity) appear impressive. In the last few years, the company has purchased three fiber operators – FPL FiberNet Holdings, LLC (in Jan 2017), Quanta Fiber (called Sunesys, in Apr 2015) and 24/7 Mid-Atlantic Network (in Sep 2014).
In accordance with the current market scenario, Crown Castle is pursuing small cell deployments for its wireless customers. The company is making this move in order to enhance its networks to meet robust demand for high-speed, high-capacity wireless services. Using small cells in unlicensed 3.5 GHz band will significantly reduce cost of operations for wireless operators. The 3.5 GHz radio frequency is being considered in many parts of the world for the upcoming 5G wireless standard.
Price performance of Crown Castle
So far, 2017 has turned out highly successful for Crown Castle. Year to date, the stock price has surged 14.45%, outperforming the Zacks categorized REIT-Equity Trust industry’s gain of a mere 3.88%. Nevertheless, high customer concentration, foreign currency exchange rate risks, stiff competition, integration risks, rising operating expenses and a highly leveraged balance sheet are near-term concerns for the company. We believe that these are primarily responsible for the stock currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Crown Castle (CCI) Planning to Expand Small-Cell Operations
Leading wireless tower operator and real-estate investment trust Crown Castle International Corp. (CCI - Free Report) has decided to double its existing small-cell network within the next two years. According to a report by Guggenheim Equity Research, the company will spend around $1.2 billion to deploy 25,000 new small-cell nodes over the next 18-24 months. At present, small-cell networks are in high demand from wireless service providers to improve coverage and increase capacity.
Recently, Crown Castle acquired privately held Wilcon Holdings LLC., a premier service provider of dark fiber, which will augment the wireless tower operator’s small-cell backhaul. Management is gradually developing small-cell networks to supplement the macro site tower business. After the Wilcon acquisition, Crown Castle will attain ownership rights of over 28,000 route miles of fiber.
Crown Castle is a leading wireless communication tower operator in the U.S. It has approximately 40,000 towers and 29,000 route miles of fiber supporting small cells. More than 90% of its quarterly revenues come from wireless service providers like Verizon Communications Inc. (VZ - Free Report) , AT&T Inc. (T - Free Report) and T-Mobile US Inc. (TMUS - Free Report) . It has acquired 9,700 wireless towers from AT&T and taken over 7,200 wireless towers of T-Mobile US.
Crown Castle’s ongoing efforts in repositioning itself from a tower company to a fiber provider (focused on small cell opportunity) appear impressive. In the last few years, the company has purchased three fiber operators – FPL FiberNet Holdings, LLC (in Jan 2017), Quanta Fiber (called Sunesys, in Apr 2015) and 24/7 Mid-Atlantic Network (in Sep 2014).
In accordance with the current market scenario, Crown Castle is pursuing small cell deployments for its wireless customers. The company is making this move in order to enhance its networks to meet robust demand for high-speed, high-capacity wireless services. Using small cells in unlicensed 3.5 GHz band will significantly reduce cost of operations for wireless operators. The 3.5 GHz radio frequency is being considered in many parts of the world for the upcoming 5G wireless standard.
Price performance of Crown Castle
So far, 2017 has turned out highly successful for Crown Castle. Year to date, the stock price has surged 14.45%, outperforming the Zacks categorized REIT-Equity Trust industry’s gain of a mere 3.88%. Nevertheless, high customer concentration, foreign currency exchange rate risks, stiff competition, integration risks, rising operating expenses and a highly leveraged balance sheet are near-term concerns for the company. We believe that these are primarily responsible for the stock currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>