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Technology Stocks : Towers: Wireless, Broadcast, Microwave and Teleports -- Ignore unavailable to you. Want to Upgrade?

To: Joe Tokarz who wrote (4)	10/26/1999 11:49:00 AM
From: p friend	Read Replies (1) \| Respond to of 22

AMT is buying the existing microwave towers from AT&T, as AT&T no longer needs the microwave capacity. They are probably using fiber now. AMT's plan is to sell microwave capacity on the towers to others in some cases. More prevalent, AMT will be selling wireless antenna space on the towers to other wireless companies. Generally, I am reading that 2 to 3 wireless antennas (one each for different carriers/companies) are the capacity limit on one tower. This is the business plan that drives the consolidation business for the tower industry. A tower company can market to all wireless carriers a portfolio of tower locations, where in the past the wireless companies were finding and securing sites and building and operating their own towers. It would appear that AT&T agreed to let AMT build and lease to AT&T some (not all) of the new towers they are going to need over the next 5 years. AT&T got rid of the surplus microwave towers and AMT solidified an already existing relationship with AT&T. AMT will buy or master lease the sites, and then lease antenna space to AT&T and others on the towers they build on the sites. The leases are straight leases, rates are not traffic related. The industry lease rates have been around $1,500 per month, including electricity, regulatory maintenance, etc.