abu_penny
05-01-2003, Sun 4:04 PM
Wireless tower companies, battered by weak balance sheets and slow demand, are not likely to pull out of their slump for some time because companies that lease their antenna space are spending less, Standard & Poor's said on Friday
The weak business profile of the U.S. wireless tower industry is unlikely to improve in the next
24 - 18 months
S&P analyst Michael Tsao said in a report. Without an infusion of equity capital, wireless tower companies will have a tough time reducing debt and some may have to restructure, he said
AMT
AWE
CCI
PCS
SBAC
SITEQ.PK
Two tower companies, SpectraSite Holdings Inc.(Other OTC:SITEQ.PK - News) and Pinnacle Holdings Inc., filed for Chapter 11 bankruptcy last year, although Pinnacle emerged from bankruptcy in November after restructuring its debt
When tower companies went public in the late 1990s, many observers expected them to be able to generate enough cash to reduce their heavy debt loads
S&P said it does not expect wireless carriers to increase their spending because some are facing their own financial challenges and are certain to limit network expansion plans. Moreover, cell phone usage in the United States is expected to grow at a slower rate, hurting demand for cell antenna sites
Companies facing "liquidity challenges"
S&P said. All three carry "junk" ratings and are on review for downgrade
AMT
SBAC
CCI
regards
The weak business profile of the U.S. wireless tower industry is unlikely to improve in the next
24 - 18 months
S&P analyst Michael Tsao said in a report. Without an infusion of equity capital, wireless tower companies will have a tough time reducing debt and some may have to restructure, he said
AMT
AWE
CCI
PCS
SBAC
SITEQ.PK
Two tower companies, SpectraSite Holdings Inc.(Other OTC:SITEQ.PK - News) and Pinnacle Holdings Inc., filed for Chapter 11 bankruptcy last year, although Pinnacle emerged from bankruptcy in November after restructuring its debt
When tower companies went public in the late 1990s, many observers expected them to be able to generate enough cash to reduce their heavy debt loads
S&P said it does not expect wireless carriers to increase their spending because some are facing their own financial challenges and are certain to limit network expansion plans. Moreover, cell phone usage in the United States is expected to grow at a slower rate, hurting demand for cell antenna sites
Companies facing "liquidity challenges"
S&P said. All three carry "junk" ratings and are on review for downgrade
AMT
SBAC
CCI
regards