“The Fiber business is doing well for itself, but it can’t keep going on the business model of the Tower company. It is that simple.”
Sure buddy, it’s doing so well it is currently under review and has been called out to be sold by various firms. There is no doubt it has been a huge drain on the company and they are absolutely looking to sell it. The only way it stays is if they cannot find someone to take it at a reasonable price.
You are pretty crazy to think that someone like ATT or Verizon is gong to come in and buy the fiber business. This is going to be an investment firm at best. There is NO way any of these companies out there will give out 10-15 billion for this company. Most have overlapping networks; most can take that money and build out where they need to be.
The Tower Model is not for the Fiber model. You have two different types of companies that need each other to run but yet different business models. It was poor business that the EMT’s didn’t keep them separate from the start.
The Fiber business is doing well for itself, but it can’t keep going on the business model of the Tower company. It is that simple.
@2tlc+1qJZS1pq, what are you talking about? AT&T has been building their own fiber and small cell poles for years. Crowns biggest contract for small cell has been TMO because TMO doesn’t have their own fiber.
BTW, AT&T and Verizon continue to build their own fiber and small cell poles to this day. Nothing about union contracts is stopping them.
This is why Crown is failing. People who work here don’t know the industry and what our customers are doing.
The only carriers that have their own fiber are AT&T and Verizon. They have no desire to build out anymore or else they'd do it. The wireline side, which maintains the fiber, is union. Which is why they turned to companies like Fibernet, Sunesys etc. From my experience with AT&T, their union contract stipulates that at the 49th hour, they go into double time. Fiber cuts are routinely lengthy so their maintenance personnel do very well come winter.
@2ilc+1qJZS1pq The same reason they don’t build towers. You put the cost into the Opex budget and don’t have to spend millions in capex Rather you spend $500 a month.
@2gzw+1qJZS1pq I'm talking about the cost to lease DF per mile.
Nothing they do that as well
@2lme What's to stop the carriers from building the SC themselves too and just cutting Crown out completely?
Sc does not need fiber. You build the site with no fiber and carrier builds fiber to the node. We did it before and can do it again. No point in holding onto fiber to build out to some random business for 12 months for $300 while paying thousands to build it.
You're in the dark when it comes to fiber my friend. Thanks to towers our bonus will be less than 100% for the first time in years. Crown will never meet their SC numbers if they don't have fiber in house. Time for the tower folks to get a reality check.
MRC on small cells isn't market specific. We have multi year, nation wide, volume based contracts. We don't make more money on small cells in urban areas vs suburban areas. There's not such thing as premium rates.
You're very off base in your assessment, I'm going to assume you haven't actually reviewed ROIs for these services.
@1emt+1qJZS1pq That's for low demand areas. SC is in urban and metro areas that have premium rates. Which is why Crown bought fiber companies. It's not as cut and dry like Towers people think...oh wait, that's right. There's a lot less of these folks.
lol a small cell bills a couple hundred a month. It takes years and multiple tenants to get any ROI. Meanwhile to lease 1 strand/route mile of dark fiber it will cost at least $500. The purple cow can't afford to split fiber and small its all or nothing
I am going to guess the keep it too, but de-emphasize small cells. Too much work and permitting, and too much volume necessary for the profit. Time will tell.
I honestly don’t think they are selling anything. I do think they will stop building enterprise fiber moving forward, kinda like how they stopped with tower construction services in July. The business of connecting hospitals and schools just isn’t profitable enough to justify building it for potential future small cells that may never come.
1ttk+1qJZS1pq It’s called a demark point. The good crown keeps the actual small cell asset from the demark point and the precious fiber keeps the silly wire. Most sc go back to the carriers hub. It’s a win Crown keeps the sc asset and its revenue and pays amazing fiber llc $5 a month. While offloading the unprofitable enterprises business.
Guess that "exhaustive nationwide search" for a new Tower COO is starting to get... exhaustive. At least Kavanaugh looks better for the sake of the brochure. But you're still not allowed to ask DS about his personal life.
The enterprise services are riding in the same sheath as the small cell fiber. You can’t just split off enterprise and sell it.
My gosh, have to explain the simplest things to the d-mb tower people.
@1rkr+1qJZS1pq Exactly lots of long term revenue there why give that away. Just dump the costly fiber.
Enterprise fiber may be going but small cell is not going anywhere.
Ding ding the witch is D E A D