Looking Good for 2016

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Colby Synesael of Cowen and Company the 2015 DAS (Distributed Antenna System) And Small Cell Congress in New Orleans, Louisiana this week and noted that carrier spending and DAS operations are setting up for a compelling 2016. “Management has seen no meaningful changes in carrier behavior in recent months as Verizon continues to lead in LTE deployment (and dominating the DAS spend) followed by continued activity from T-Mobile,” Synesael explained. “Sprint has remained very quiet with mild amendment activity (Crown has not had new colo activity from Sprint in years), and while 2015 iDEN churn may be disappointingly in-line (we were hoping for upside to churn guidance), Crown is seeing the very beginning of Sprint application activity for new sites as part of its recently approved aggressive densification plan.” Since the beginning of the year, analysts predicted more activity in the second half of the year, and Synesael believes that activity in the third and fourth quarter will translate into 2016 growth. “Meanwhile AT&T is being ‘very predictable,’ tightening its capex ahead of the DirecTV acquisition and prior dividend coverage concerns. The carrier seems to have taken a breather after heavy spending in 2013/2014 and focusing attention elsewhere, but will need to play catch-up in 2016. All said, 2016 looks to be a year of elevated carrier spending across the board and management remains highly encouraged with the operating leverage that DAS will (finally) bring to the table.”

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