{"id":43495,"date":"2013-08-02T13:07:46","date_gmt":"2013-08-02T11:07:46","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=43495"},"modified":"2013-08-02T13:09:26","modified_gmt":"2013-08-02T11:09:26","slug":"atc-sees-big-returns-on-cell-c-acquisition","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/43495\/atc-sees-big-returns-on-cell-c-acquisition\/","title":{"rendered":"ATC sees big returns on Cell C acquisition"},"content":{"rendered":"<p>American Tower Corp says the towers it purchased from Cell C is\u00a0generating return on invested capital of approximately 20%, in local currency.<\/p>\n<p>In second quarter results published on Wednesday (31 July)\u00a0American Tower Corp. (ATC) reported a profit of $99.8 million, or 25 cents a share, up from $48.2 million in 2012.<\/p>\n<p>Operating revenue increased 16% to $808.8 million.<\/p>\n<p>In 2010, ATC formed its South Africa unit,\u00a0providing wireless and broadcast towers.<\/p>\n<p>In November of that year, ATC and Cell C announced that they had entered into a definitive agreement for the sale of up to 1,400 of Cell C\u2019s existing towers, and up to 1,800 additional towers that are either under construction or will be constructed over the next two to three years.<\/p>\n<p>In March 2011, the company completed the purchase of 959 existing communications sites through its local South African subsidiary, for an aggregate purchase price of $149.1 million.<\/p>\n<p>In July 2011, ATC completed the purchase of an additional 329 existing communications sites from Cell C for approximately $51.5 million.<\/p>\n<p>Announcing the groups results on Wednesday (31 July),\u00a0James Taiclet, chairman, president and CEO said upon\u00a0acquisition of towers from Cell C, &#8220;the portfolio had on average just over one tenant equivalent per tower.&#8221;<\/p>\n<p>&#8220;Within just three years of integrating these assets, we have grown the occupancy rate to nearly two tenant equivalents per tower, and today are generating return on invested capital of approximately 20% in local currency.&#8221;<\/p>\n<div id=\"attachment_559\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2011\/12\/Jim-Taiclet.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-559\" class=\"size-full wp-image-559\" alt=\"Jim Taiclet\" src=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2011\/12\/Jim-Taiclet.jpg\" width=\"600\" height=\"400\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2011\/12\/Jim-Taiclet.jpg 600w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2011\/12\/Jim-Taiclet-300x200.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-559\" class=\"wp-caption-text\">Jim Taiclet<\/p><\/div>\n<p>The group reported an increase of eight towers during the quarter in South Africa, to\u00a01,629.<\/p>\n<p>At the end of the second quarter of 2013, American Tower managed 56,193 communications towers in all its markets, of which 55,720 were for Wireless network and 473 for Broadcasting.<\/p>\n<p>Geographically, the company operates 22,720 wireless towers and 274 broadcast towers in the US. along with 33,473 wireless towers and 199 broadcast towers outside the US.<\/p>\n<p>The group lead said that\u00a0depending on whether it\u2019s a rooftop, or whether it\u2019s a ground-based tower, it costs in the range of around\u00a0$150,000 to build in Africa, with average rental rates in SA is in the $2,500 range.<\/p>\n<p>&#8220;As overall internet usage continues to expand in South Africa, we anticipate that the vast majority of this growth will continue to be captured in the mobile network, given South Africa\u2019s very low wireline penetration of 9%,&#8221; Taiclet\u00a0said.<\/p>\n<p>&#8220;Already, the strong subscriber ramp up in data is fueling significant need by the carriers to invest in 3G capacity builds. MTN and Vodacom, for example, have recently reported plans to increase their 3G deployment activity. This is resulting in leasing activity across our South African sites well in excess of our original expectation,&#8221; he said.<\/p>\n<p>The CEO believes ATC still has substantial upside to grow in South Africa. &#8220;Today, smartphone penetration is only 20%, so there\u2019s significant upside to data adoption as handsets become cheaper and more accessible for those consumers.&#8221;<\/p>\n<p>&#8220;Further down the road, we view LTE deployments as a longer term growth driver in the South Africa market, and anticipate that carriers will largely use the spectrum they have been allocated to provide more advanced services such as mobile video,&#8221;\u00a0Taiclet said.<\/p>\n<h3 class=\"my-4\">More on\u00a0American Towers Corp<\/h3>\n<p><a title=\"Tower Corp. cheers new business in SA\" href=\"http:\/\/businesstech.co.za\/news\/mobile\/37141\/tower-co-cheers-new-business-in-sa\/\"><strong>Tower Corp. cheers new business in SA<\/strong><\/a><\/p>\n<p><a title=\"MTN and ATC in tower deal\" href=\"http:\/\/businesstech.co.za\/news\/mobile\/558\/mtn-and-atc-in-tower-deal\/\"><strong>MTN and ATC in tower deal<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>American Tower Corp says the towers it purchased from Cell C is generating return on invested capital of approximately 20% in local currency.<\/p>\n","protected":false},"author":9,"featured_media":4840,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[6424,42,26,6423,525,28,27],"class_list":["post-43495","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-american-tower-corp","tag-cell-c","tag-headline","tag-james-taiclet","tag-lte","tag-mtn","tag-vodacom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/43495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=43495"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/43495\/revisions"}],"predecessor-version":[{"id":43589,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/43495\/revisions\/43589"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/4840"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=43495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=43495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=43495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}