Winners of the 2016 TowerXchange Industry Award for best build to suit towerco, Atlas Tower have continued their impressive growth throughout 2017. At the time of the 2016 awards and Meetup their tower count was 160 sites, by the 2017 Meetup this will be 372. TowerXchange speak with Atlas Tower’s CEO, Nate Foster to learn more about the company’s impressive organic growth and understand their vision for the future.
TowerXchange: Please can you introduce Atlas Tower to TowerXchange readers.
Nate Foster, CEO, Atlas Tower:
Atlas Tower started operations in the US in 2007 and expanded into Africa in 2014. We have owned and operated over 500 communication towers worldwide. Currently, we are the fastest growing tower company in South Africa, with more than a 3000% increase year on year over the past three years.
We are midsize, manager-owned company that facilitates nimble operations and simple office processes. This results in high speed tower development. We use thoughtful and strategic siting methodologies, coupled with a quick lease process to turn a dot into a structurally sound tower in record time. We hire the grittiest professionals in the market and offer a dynamic work environment where people are free to be creative and successful.
TowerXchange: Atlas Tower have grown rapidly in South Africa, what do you think has been the secret behind this success?
Nate Foster, CEO, Atlas Tower:
We strive to be more aggressive and innovative. The MNOs need the best networks, at record speeds to compete for subscribers. We understand this need and run a little faster building infrastructure quickly.
TowerXchange: As densification of urban networks becomes increasingly important in South Africa, what role do Atlas see themselves (and other parties) playing in supporting this through the deployment of HetNet solutions?
Nate Foster, CEO, Atlas Tower:
We have already built what we consider to be “small cells”; 10-15m smart sites in ultra-urban locations. Although this percentage of our portfolio will grow, we remain more focused on the macrosites that are still needed for 2G and 3G growth. Our long term, portfolio diversification and asset creativity is key to revenue diversification and cash flow stability.
TowerXchange: What do you see as some of the biggest challenges that towercos are experiencing in the South African market at the moment?
Nate Foster, CEO, Atlas Tower:
Land values are increasing whilst ARPU is decreasing. This is creating board level pressure on opex in all of our markets. We are seeing a constriction in cash flow for single tenants, and therefore, our cash flow success relies more and more on fast lease up rates and same tenant- same tower cash flow levels.
TowerXchange: What does Atlas have planned in terms of geographic expansion and what kind of business model do you foresee in such markets?
Nate Foster, CEO, Atlas Tower:
We’ve looked at most African markets and will say confidently, we are investing in other countries and will be developing small portfolios worthy of disclosure soon. We know this business as well as anyone and feel that our organic build model will work in selective African Markets.
TowerXchange: What is Atlas Tower’s long term vision for the company? Do you foresee yourselves participating in tower transactions? Do you foresee yourselves as having a large pan-African footprint? Is there a roadmap towards a sale?
Nate Foster, CEO, Atlas Tower:
We sometimes buy towers or smaller tower cos. This however, is not our core value, but rather a strategic add on. As far as sale leaseback transactions, we can offer a unique solution to the seller and a strong local option for a selling MNO.
The Atlas Tower long term plan is to continue to develop the business only where we can build short-term positive cash flow in a geographically efficient market. We have effectively proven that the tower industry narrative in Africa is not limited to the drama of the enormous sale and leaseback deal.
Atlas Tower are silver sponsors of the 5th Annual TowerXchange Meetup Africa & Middle East. Join Nate and his team on 3-4 October 2017 at the Sandton Convention Centre, Johannesburg. For more information please click here.
