A Project Finance Approach to TowerCos: Rating Independent Wireless Infrastructure Providers

This article was produced by DBRS Morningstar, a member of IPFA. 

Wireless infrastructure providers, more commonly known as tower companies, can be either captive entities that are majority owned by Mobile Network Operators (MNOs) or they can be independent pureplay entities (TowerCos) that focus on managing, maintaining, and building passive telecom infrastructure (towers) to host multiple tenants. TowerCos can take the form of corporations or special purpose vehicles (SPVs) formed exclusively to own and operate telecom tower (and rooftop) sites. TowerCos have seen continued growth in recent years, as MNOs see the many benefits of outsourcing and sharing passive wireless infrastructure. This commentary focuses on the risks and credit considerations in the rating of TowerCo entities.

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