Colocation, the process of adding tenants to a tower with an existing anchor tenant, is a critical component of efficiently expanding wireless networks. While the big three tower companies dominate the landscape, private tower companies like Harmoni Towers play a significant role in providing high-quality infrastructure for wireless carriers, ISPs, and non-traditional telecom players.
Harmoni Towers, one of the largest private tower companies in the U.S., operates over 2,000 towers nationwide and markets an additional 1,200 towers through partnerships. Harmoni is a pure play towerco. They exclusively build and manages macro towers, ensuring its assets are built to last and optimized for multiple tenants.
According to Chas Peterson, Harmoni’s Chief Commercial Officer, colocation is at the heart of their strategy. “Our business has grown exclusively from us building towers for anchor tenants,” Peterson explained. “We didn’t buy those 2,000 towers. We built them. And we work hard to secure the second or third tenant.”
Multi-Tenants In Mind From the Get-Go
Adding a second or third tenant to a tower isn’t as simple as just attaching new equipment. Site selection, structural integrity, power availability, and access to fiber infrastructure all play a role in ensuring a successful colocation process.
Aaron Bloom, SVP of Business Development, said preparing for colocation starts before a tower is even built. “You have to have a tower that’s very robust structurally,” Bloom explained. “You must have enough space within the compound to accommodate multiple users.”
To facilitate colocation, Harmoni Towers ensures that utilities and infrastructure are in place from the outset. “We bring in an 800-amp service, set up a four-gang meter bank, and establish fiber infrastructure with conduit and handholes,” Bloom said. “That makes it plug-and-play when a new tenant comes in.”
By proactively designing towers with colocation in mind, Harmoni eliminates many of the challenges that arise when retrofitting older towers to accommodate additional users.
Navigating the Colocation Process
Concealed tower in Moscow, ID
For large national carriers, the colocation process follows a structured and standardized approach. Harmoni has master agreements in place with major wireless providers, allowing them to quickly onboard new tenants through a rinse-and-repeat method.
However, not all tenants are traditional wireless carriers. Wireless Internet Service Providers (WISPs), IoT providers, utilities, public safety agencies, and private network operators are increasingly looking to lease space on towers. However, many lack experience with the colocation process.
“One of the most important things when engaging with these tenants is open and clear communication,” Bloom said. “They don’t always have a consultant guiding them through the process, so my team walks them through every step.”
For companies unfamiliar with colocation, Harmoni takes a hands-on approach. “Sometimes a new tenant will come in with a vague idea of what they need,” Bloom explained. “They’ll send us a list of equipment, and when we provide a site application, it means nothing to them. So, we sit down and help them fill it out, taking them slowly through the process.”
Plus, not all tenants align with a one-size-fits-all lease structure. While large carriers have well-defined colocation agreements, non-traditional tenants often have unique business models that require customized lease terms.
“Every potential tenant has different needs,” Bloom emphasized. “We take the time to understand their business and craft agreements that work for them. Some clauses are non-negotiable, but we try to be flexible where we can.”
This approach has helped Harmoni turn small opportunities into long-term partnerships. “We’ve had small customers start with just one site, and now they’re at 50 or 60 sites with us,” Bloom said. “That’s only possible when you take the time to support them from day one.”
Educating the Market and Attracting Tenants
Despite their efforts to streamline the process, tower companies can’t rely on tenants simply finding them. Proactive engagement is key to building relationships with potential customers.
“Every site we build gets registered with the FCC,” Bloom said. “That means sometimes customers find us. But more often, we have to go out and engage in their ecosystem.” Harmoni actively participates in industry groups like WISPA (Wireless Internet Service Providers Association) and the Rural Wireless Association to connect with potential tenants. Attending conferences, hosting exhibit booths, and engaging in direct conversations help bridge the knowledge gap for companies unfamiliar with tower leasing.
Areas of Opportunity
Looking ahead, Harmoni sees major growth opportunities in public safety, fixed wireless, and private networks.
“Public safety is one area where we’ve seen a lot of traction,” Peterson said. “We’ve even had some anchor tenants from that sector. These towers serve an important purpose, and they’ve also been great assets that attract additional interest.”
The Broadband Equity, Access, and Deployment (BEAD) program is also expected to drive new demand for towers. Many rural providers have been waiting for BEAD funding to expand their networks.
“A lot of rural carriers have been quiet, waiting on BEAD and their rip-and-replace programs,” Peterson said. “We’re hoping that will stimulate growth and bring activity back to where it was a few years ago.”
Beyond traditional telecom, utilities are increasingly leasing tower space. “Utilities are doing more private 5G projects, and they need vertical assets,” Peterson explained. “They don’t have to build their own towers if they can colocate on ours.”
Local Expertise and Support
A stealth pencil tower build. It’s situated in the parking lot of an elementary school –
a unique location to connect students and residents in the Chicago suburb of Cicero.
Harmoni’s regional business development team plays a crucial role in identifying potential tenants and guiding them through the process.
“This kind of growth isn’t concentrated in one area. It happens wherever we have assets and people on the ground,” Peterson said. “Aaron’s team has to know who the potential customers are and how to nudge them in the right direction.”
In the end, successful colocation is about education, flexibility, and proactive engagement, according to Peterson. “Often, it’s really about reaching out and having a conversation.” For those new to colocation, Harmoni recommends a visit to their website, publicly available geo-spatial resources like Google and Bing, as well as data from the FCC (https://www.fccinfo.com/fccinfo_google_earth.php) to help identify nearby towers and tower companies.
To learn more about Harmoni Towers, visit https://harmonitowers.com/. To learn more about this specific topic, listen to a recent episode of Tower Talks featuring Harmoni Towers here.
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