3 Businesses to Invest in Due to Mobile Phone Growth

02/20/2017 06:45 pm ET
WikiMedia

With the advent of mobile phones and numerous innovations, you can attest that the businesses that come to mind when you think of a tech firm, are those like Facebook and Apple, which make huge chunks of money. You probably have never heard of a cell tower lease company. American Tower is one such company that leases over 27,000 cell towers to wireless devices providers. A common network provider, Verizon Communications is inclusive.

This company plays a huge role in cell phone network delivery to your homes. American Tower has set up plans to buy out existing cell tower leases. The company's motivation is driven by the need of the company to secure the time it requires at the site. This will benefit American Tower because it secures its revenue streams. The venture itself is also advantageous to the investors because of the financial gain expected.

For you the property owner, the cell tower lease buyout will help in realizing the value of the cell tower lease. Moreover, the cell tower lease is advantageous because most existing tower leases have favorable tenant termination provisions. Realizing these rents eliminates the risks of this revenue stream ceasing to exist in the future.

The only possible way to determine the fair value of the investment is to consult a telecom expert who can review your lease, and the expected returns of the tower situated on your property. The true value of any cell tower lease buyout is not based on what your current rent is, rather the utility and value of that site are to the party leasing it.

Similarly, when presented with an offer to increase your current lease, a cell tower lease buyout is an important negotiation that stems from the true value of the lease based on multiple factors that not only describe the actual lease but also the physical site location and telecom equipment.

The lease company, American Tower, will not provide you with all the information that you could use to make a decision that could translate to hundreds of thousands of dollars. The company is mostly looking after its benefits. In case you wish to sell your cell tower or rooftop lease, consultancy companies such as Vertical Consultants can help you optimize the net value you receive.

It is imperative that you ensure you have all the necessary information and proper counsel whenever such a deal is put on your table. Vertical Consultants provide you with all the expert advice that you may need concerning the negotiations for a cell tower lease buyout for your cell tower.

Secondly, there are Standard Setting Organizations (SSOs) like 3G Americas. These are multisided platforms which help members come to an agreement over set standards. This is another business platform that you need to realize has flourished since the mobile phones came into play; for example, mobile carriers and chip providers have to agree on a common standard such as 4G set by SSOs.

The SSOs usually publish a standard and disseminates it at a low cost, and at times free. They comprise a massive, yet almost unnoticeable industry. You should know that SSOs are responsible for a significant amount of economic growth.

Every generation of mobile phones from the 1990s followed years of efforts by an SSO to create standards. You tend to give a lot of credit to platforms such as Apple for developing great software platforms; you forget that Android and the IOS wouldn't have been possible, and probably wouldn't have been created, had the SSOs failed to create technology platforms for providing fast broadband.

The third set of businesses is those that deal in microprocessor intellectual property such as ARM. Without ARM, there is a chance that the iPhone or Android phone that you own would not work. ARM's chip designs are utilized in every iPhone and any other modern smartphone.

The business has spread its roots to most areas of the technology that you use from day to day.

The first iPhone contained a Samsung-manufactured ARM-design chip. Apple led the market, and other smartphone designs followed suit. The iPhone that you use right now has in it installed an ARM chip.

The company works with other manufacturers to make the chip. The company provides you with the best processors and processing units for your mobile phone.

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