We Know Values
With years of experience, we understand the various factors that create market value for communications tower assets.
Valuations can vary widely. Factors affecting valuation range from the total size of the transaction, competition from adjacent towers, loading capacity, geographic area of the United States (Many small buyers purposefully focus on regional clusters.), and the number of carriers currently in the market or entering the market.
We work with around fifty unique buyers. We are in monthly contact with these groups to be aware of their available capital and can provide “real time valuations” given our position as a major market maker in this industry. Outsiders can only judge values from publicly announced transactions and “estimates” they extrapolate for historical deals. We know what companies made what types of offers for assets in real time, what contractual and related issues are non-negotiable, the number of transactions in their “pipeline” at any given time, and which buying groups will meet not only the financial expectations but other important variables.
That means that new buyers seek us out as a market maker and sellers seek out our industry with specific real-time knowledge.
We Have Buyers
With over fifty buyer relationships, we have the ability to manage significant deal flow in the communications tower marketplace.
We Have Experience
Nations Media has been in the spectrum business since 1999. We completed transactions with virtually ALL the companies in America when there was a “musical chairs” game going on as to how each individual company wanted to seize market share first. The same individuals we dealt with in 1999 are now almost 15 years older and you just can’t replace 15 years of working with a company/individual.
Tracking Market Changes
The market has changed DRAMATICALLY since the AWS auction of 2014. Buyers scooped up spectrum the wanted to extend their service areas and those purchasers have heavily discounted the value of PCS spectrum – only using it for additional capacity in markets they already serve, limiting the pool of buyers. AWS prices were all highly erratic 2014 Auction 97 dependent upon a buyers desired geographic with values ranging from $0.04 per pop to $2.68 per pop. The same is true today in the secondary market. In March of 2015, Nations brought offers on a PCS spectrum license from three of the four big carriers and the range of valuation from lowest to highest was 228%!
In the remaining urban areas, there still remains a drought of spectrum. In the rural areas, the band is of the greatest concern due to propagation characteristics. 700 MHz is much cheaper to construct as opposed to the mid-band areas.
The old adage is land is a good investment because they are not making any more of it used to hold true with spectrum. Not anymore. The Broadcast Incentive auction to begin on March 29th will be a land rush for most of the carriers. The anti-collusion-quiet period is likely to begin January 29th, 60 days before the auction begins. The auction will last at last up to five months, creating a black-out period into August. Once the auction is completed, the appetite to purchase additional spectrum traditionally has dropped dramatically as carriers are once again taking inventory of what they bought and prioritizing where to build out networks first.
and Data Centers
We Know Data Deals
As our technology and communications practices have merged into past buyer relationships that want to enter the cloud computing space, our data center practice has exploded. And the investors/clients are long-term clients of Nations Media. In almost every secondary or tertiary city in America there are four to eight independently owned data centers for consolidation, all growing at 15-30% in revenue per year.
We Know the Growth
Is the cloud getting smaller? Every tenant will require more and more storage as their data needs grow. Every new incremental growth from new sales further enchance growth. So we have an industry in it’s infancy still for smaller health care providers, financial institutions- any business with multiple locations that NEED backup and a centralized database. The sky really is the limit.
We Know the Demand
The amount of capital pouring into the industry is very similar to the land rush in Cable TV, mobile phone systems,, communications towers and DIRECTV licensees. And Nations has past relationships with almost all the new equity players entering the market. Our other VERY strong buyers are our core client relationships with the 1,200 independent telephone companies looking to diversify that have ample capital to invest in diversification.