Google continues its path toward a larger entry into the wireless service industry, and, with that, the tier-one wireless carriers (AT&T, Verizon, T-Mobile and Sprint) are starting to get more and more nervous as to what this will mean to them.
However, as recently reported by CNBC, the big three cell tower companies (Crown Castle, American Tower and SBA Communications) are looking like they may be the biggest winner if Google continues its current plans to be more and more involved in the wireless world. Why? It is simple – the more wireless carriers in the market, the more potential revenue sources for these companies.
“In the most simplistic sense, if a new competitor comes in even through what is called MVNO or virtual operator status. That means there are more antennas on the towers to support more usage. And the tower companies like American Tower, Crown Castle International Corp (NYSE:CCI) and SBA are paid and more kind of junk being on the tower themselves,” said Mrs. Fritzsche.
Google’s current plan is not to build its own wireless network, but to piggyback off others. But it won’t build its own wireless network so much like TracFone and Virgin Mobile have done to build their business. This will also allow Google a cheaper entry into the wireless market and will allow it to take some risks that the other carriers won’t, such as the following:
• Presently, AT&T, Verizon, T-Mobile and Sprint all use Wi-Fi networks, but Google states it is going to expand the Wi-Fi database it uses so it can choose the best one to provide its customers the best services at the lowest possible expense.
• Google has plans of implementing systems that will allow a wireless customer to avoid dropping phone calls and when a call does drop, the call will be automatically reconnected.
• Google has big plans to use its wireless network to create an advantage over its continual battle with Apple. The development of a Google wireless network will be a huge step in distinguishing itself and, more particularly, its Android applications to a level that will surpass those of Apple.
Google plans to commence its entry into the wireless market on a small scale and only presently plans to cover up to 10% of United States homes.
However, even with this initial small footprint into the wireless market, there will be both a definite impact on the wireless carriers and the cell tower companies that provide them with space to operate.
Contact us today to learn how developments in the wireless industry impact you and your cell tower lease.