Will Google Impact Tower Companies?

As Inside Towers recently reported, Google confirmed reports that the company is planning to launch its own wireless service as a mobile virtual network operator (MVNO). Google is reportedly working with Sprint and/or T-Mobile to use their networks to provide the wireless service. Jennifer Fritzsche, Senior Analyst at Wells Fargo, was featured on CNBC March 3 to discuss how exactly this new endeavor would impact the tower world. “In the most simplistic sense, if a new competitor comes in, even through what’s called a MVNO or a virtual operator status, that means there’s more antennas on the tower to support more usage,” Fritzsche said. “And the tower companies, like an American Tower, Crown, SBA, are paid on more kind of junk being on the towers themselves.” Right away there wouldn’t need to be an influx of towers to be built to accommodate Google’s needs, but as they grow there would be a need for additional infrastructure. Just like there is for the other four carriers, when looking to move into a new area, increase capacity, or coverage more towers are required.