SellTower Signals

Is It Time to Sell Your Cell Tower?

According to Tom Engel, Director at Strategic Tower Advisors, now is a good time to sell your cell towers.  What is his reasoning and what do the experts at SellTower Consulting recommend?

Engel asserts that the market for cell tower assets has reached it peak, and can valuations can only drop from these lofty levels.  Here are the reasons that valuations will head lower:

  1. Interest rates are rising and expected to continue rising as the economy continues to grow.
  2. Wireless carriers are experiencing shrinking margins and have decided to reduce their rent expenses by leaving high rent towers.
  3. The T-Mobile+Sprint merger appears headed for approval.  Overlapping cell sites will be eliminated by the combined company.
  4. Industry consolidation – Both few wireless carriers and fewer tower companies will push valuations down.
    1. Less carriers equals less Demand for space on new and existing towers.
    2. The remaining tower companies are much more picky about buying new towers – especially where they already own a tower nearby.
  5. 5G network architecture appears heading towards a small cell platform instead of a tower based platform.

So, what has SellTower found in the tower market?

With the caveat that every tower has its own Supply & Demand factors, SellTower sees strong evidence that valuations are dropping for all network infrastructure assets.

If you own a tower or two, there is no need to panic…yet!  However, if you own a tower with both T-Mobile and Sprint on the same tower, the value of your asset has already dropped by over 30%.

If you find yourself in this situation, contact SellTower today to learn about your options for monetizing your network assets.

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