Frank Viquez, a senior wireless analyst at ABI, says tower companies could struggle to meet growing demand for tower space, which in turn could affect carriers' ability to offer next-generation services on time. Still, tower managers are having trouble keeping up when it comes to deploying new tower sites, Viquez says. Besides 3G considerations, other factors slowing down tower companies include the possibility that the tower market will further consolidate. There's also continued public opposition to cell site construction. In the United States, zoning laws and grassroots organizations that oppose tower construction for health and aesthetic reasons can delay site acquisition and tower construction for years.
Wireless carriers install antennas on towers and other hardware in base stations under the towers.
Therein lies the advantage. In the United States, however, where several wireless standards are in place, carriers seem more cautious, watching their competitors and weighing their options. I think they are trying to ascertain the implications of 2.5G in the United States. DeRussy says carriers' migration toward 3G will provide tower companies with new collocation revenue as well as new sources of income from designing, engineering and installing new equipment. Fixed-wireless providers and other players also will add new sources of income.