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Crown Castle (CCI) Acquires Wilcon to Enhance Fiber Assets
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Crown Castle International Corp. (CCI - Free Report) has concluded the acquisition of privately-held Wilcon Holdings LLC.
A premier service provider of dark fiber, lit transport, Internet access and colocation services in Southern California, Wilcon currently owns 1,900 route miles of fiber in Los Angeles and San Diego. With this acquisition, Crown Castle will attain ownership rights of over 28,000 route miles of fiber.
Crown Castle is U.S’s leading wireless communication tower operator. It has approximately 40,000 towers and 29,000 route miles of fiber supporting small cells. The new acquisition is expected to contribute nearly $40 million to its gross margin and $10 million to general and administrative expenses in the first year.
Crown Castle’s ongoing efforts in repositioning itself from being a tower company to a fiber provider (focused on small cell opportunity) looks 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 the whooping demand for high-speed, high-capacity wireless services. Using small cells in unlicensed 3.5 GHz band will significantly reduce cost of operations for the wireless operators. The 3.5 GHz radio frequency is being considered in many parts of the world for the upcoming 5G wireless standard.
Wireless services are rapidly gaining ground based on technological advancements and network upgrades. Much of the infrastructure and upgrades require effective site management of cell towers and equipment. Crown Castle successfully addresses this opportunity as over 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) . The company has acquired 9,700 wireless towers from AT&T and taken over 7,200 wireless towers of T-Mobile US.
Shares of Crown Castle have outperformed the Zacks categorized Reit- Eqty Trust Other industry’s gain in the last three months. The stock has gained 6.61%, while the industry gained 5.63% over the same time span.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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Crown Castle (CCI) Acquires Wilcon to Enhance Fiber Assets
Crown Castle International Corp. (CCI - Free Report) has concluded the acquisition of privately-held Wilcon Holdings LLC.
A premier service provider of dark fiber, lit transport, Internet access and colocation services in Southern California, Wilcon currently owns 1,900 route miles of fiber in Los Angeles and San Diego. With this acquisition, Crown Castle will attain ownership rights of over 28,000 route miles of fiber.
Crown Castle is U.S’s leading wireless communication tower operator. It has approximately 40,000 towers and 29,000 route miles of fiber supporting small cells. The new acquisition is expected to contribute nearly $40 million to its gross margin and $10 million to general and administrative expenses in the first year.
Crown Castle’s ongoing efforts in repositioning itself from being a tower company to a fiber provider (focused on small cell opportunity) looks 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 the whooping demand for high-speed, high-capacity wireless services. Using small cells in unlicensed 3.5 GHz band will significantly reduce cost of operations for the wireless operators. The 3.5 GHz radio frequency is being considered in many parts of the world for the upcoming 5G wireless standard.
Wireless services are rapidly gaining ground based on technological advancements and network upgrades. Much of the infrastructure and upgrades require effective site management of cell towers and equipment. Crown Castle successfully addresses this opportunity as over 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) . The company has acquired 9,700 wireless towers from AT&T and taken over 7,200 wireless towers of T-Mobile US.
Zacks Rank & Price Performance
Crown Castle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Crown Castle have outperformed the Zacks categorized Reit- Eqty Trust Other industry’s gain in the last three months. The stock has gained 6.61%, while the industry gained 5.63% over the same time span.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>