How TowerCos Can Drive Value In A Difficult Economic Climate

Telco tower companies (TowerCos)—those that build, manage, and lease the cellular towers and infrastructure that network operators rely on—have enjoyed more than a decade of favorable conditions driven by low interest rates and advantageous M&A activity. But in this current economic climate, value creation and enhanced efficiency are growing in importance.

Cost improvements are crucial from a valuation perspective. Depending on location, an EBITDA uplift of $1M can lead to industry multiples of 15-25x. By achieving cost leadership through operational effectiveness and footprint optimization, companies can offer unmatchable prices. American Tower Corporation is already using this strategy to gain customers in Latin America and Africa.