Crown Castle Essay

Crown Castle
Crown Castle operates as a real estate investment trust (REIT) for federal income tax purposes. At the end of 2016, Crown Castle’s customers include Sprint, Verizon Wireless, T-Mobile, and AT&T, accounting for 90% of the company’s site rental revenues. Additionally, site rental revenues comprised of 82% of the company’s consolidated net revenues and site rental gross margin comprised of 89% of consolidated gross margin. Crown Castle’s site rental revenues is a result from initial terms of 5-15 years, renewing multiple tenant periods of 5-10 years, limited tenant termination rights, and contractual rental price escalations. Furthermore, Crown Castle’s tenant leases have a subjective standard of 6 years life expectancy, representing

Wireless service has become an important part of our daily lives. More and more people are texting, posting, streaming, and getting directions to places utilizing wireless services. Crown Castle, as the United State’s main source of wireless infrastructure, has been operating and leasing their infrastructure with wireless providers, public safety organizations, governments, property owners, and M2M businesses since 1994. In today’s society, technology and information access is essential in our daily lives. Due to increased demands for wireless services, coverage and capacity needs to be increased to meet the service demands and expectations of consumers. This is the main reason why Crown Castle utilizes an all of the above strategy, combining towers, rooftop antennas, and small cell solutions. In addition, Crown Castle follows a shared model, enabling multiple service provider equal access to every site. This is more cost effective than building and owning infrastructure, which enables the company to efficiently allocate its capital and focus on the needs of the

In addition, Crown Castle has greater financial resources than their competitors. Crown Castle has not experienced any work stoppages, such as strikes. Crown Castle’s management and employee relations are satisfactory. The company is not part of any collective bargaining agreements. In addition, Crown Castle has never experienced any material adverse effects as a result of any domestic or international regulations and has never incurred any material fines or penalties. Crown Castle’s primary weakness is that the company depends on the demand for wireless infrastructure, driven primarily by demand for wireless connectivity, and may be adversely affected by any slowdown. In addition, a reduction in the amount or change in the mix of carrier network investment may materially and adversely affect the company’s business, which includes reducing demand for tenant additions or network