Valmont is one of the global leaders in the tower design and manufacturing industry – a sector undergoing radical changes in light of the advent of 5G and its urban densification requirements. In this exclusive interview, Jeff Syslo, Valmont’s Business Line Manager for its Engineered Support Structures unit, shares with our readers unique insights into what 5G means for the infrastructure industry, new types of collaboration and partnerships required to succeed and considerations on the evolution of the site sharing business model.
TowerXchange: Please introduce Valmont and yourself to our readers.
Jeff Syslo, Business Line Manager, Global Communication Systems, Engineered Support Structures, Valmont Industries, Inc.:
Valmont is a public company (traded on the NYSE, ticker symbol VMI) founded in Valley, Nebraska in 1946 and operates in four primary business segments, namely:
- Engineered Support Structures
- Protective Coatings
- Irrigation
- Utility Support Structures
Valmont has been providing antenna structures to the global wireless communications industry for the past 70 years. The range of products we offer include all types of structures such as macro-towers, rooftops, monopoles and camouflaged sites. We also supply a full line of network infrastructure components and hardware through our SitePro1 business.
I began my career in the wireless industry over 25 years ago with Valmont and my current role is Business Line Manager, Global Communication Systems. My primary responsibility is growing our telecom segment through developing new markets, new products and expanding our global reach within the industry.
TowerXchange: What’s the company’s footprint and key business areas?
Jeff Syslo, Business Line Manager, Global Communication Systems, Engineered Support Structures, Valmont Industries, Inc.:
We manufacture products in over 85 different facilities spread across six continents and do business in over 25 countries.
We are a leading producer and distributor of products and services for the infrastructure and agricultural markets. The Engineered Support Structures segment is our key division, which includes products for the wireless, traffic/lighting and transportation businesses. The other three segments are utility structures for the electrical industry, our protective coatings business and irrigation systems for agriculture.
With annual revenue of US$3bn, we currently employ 12,000 people worldwide and generate 65% of our sales in North America (Canada, U.S. and Mexico) and 35% from other regions around the globe including, Europe, Asia, Africa, South America and Australia.
TowerXchange: How has the demand for traditional macro-towers evolved to new site typologies over the years?
Jeff Syslo, Business Line Manager, Global Communication Systems, Engineered Support Structures, Valmont Industries, Inc.:
Every region has its own characteristics and challenges based on population, topography, regulations, et cetera.
North America was one of the first regions to adopt infrastructure sharing and this practice is now very common, but 30 years back, towercos didn’t exist and MNOs used to invest in building their own networks. The region is very towerco-centric, but this cannot be said of other markets where we operate, which are just now starting to embrace sharing initiatives. In those markets such as North America, where site sharing is common, we typically see larger structures due to having multiple operators on the same sites.
4G has been a great testbed for this change as antennas got larger and the capacity increase was great. We’ve performed many structural analyses, upgrades, reinforcements and, when required, complete replacements. In fact, sometimes it’s simply more economical to just replace a site rather than re-engineer it. The increased loading requirements has also led to new products such as heavy-duty antenna mount systems and network infrastructure components.
The aptitude of our customers has definitely changed too. Years back, no one used to build with the idea to future-proof their sites to new technologies and requirements. Now we are working with a different mindset and are fully aware that larger loads are and will be needed.
Nowadays, we are starting to ship 5G structures to China and across North America. These new sites are much stronger to support extra equipment and we are doing everything for the very first time as there’s no blueprint for 5G structures.
TowerXchange: What are some of the most innovative sites your clients are requesting these days?
Jeff Syslo, Business Line Manager, Global Communication Systems, Engineered Support Structures, Valmont Industries, Inc.:
We have done all types of custom structures depending on the site location and requirements. Local zoning requirements and regulations dictate what type of structure may be allowed at a particular location.
Our Valmont-Larson division has been providing camouflaged site solutions for over 25 years. Some examples include structures disguised as cacti, all types of trees, highly decorative lamp-posts and architectural solutions on buildings including decorative cupolas, working clock towers and church steeples.
We continue to see increased demand for innovative and creative site solutions. We say if you can dream it, we can build it.
TowerXchange: How do you foresee the advent of 5G to change the demand for your products?
Jeff Syslo, Business Line Manager, Global Communication Systems, Engineered Support Structures, Valmont Industries, Inc.:
We are already seeing a demand for new and innovative solutions with the initial rollouts of 5G in Asia and North America.
5G technology, especially in the mmWave frequency bands, creates new challenges and opportunities. This is the biggest business opportunity we’ve seen in the past 25 years and have a dedicated team solely focused on developing and implementing 5G site solutions.
The volume of new sites will be quite large and we see the need for all types of site solutions. Urban areas will require a high density of sites, with the majority of them being innovative designs such as lampposts, rooftops, street works, et cetera.
We have extensive experience and knowledge with all types of engineered structures such as lampposts, traffic signalling, street works, rail and tramway structures. Many of the 5G sites will be implemented using this existing infrastructure and we have great know-how in these areas.
TowerXchange: Are you seeing synergies between utility towers, lighting sites and telecom towers?
Jeff Syslo, Business Line Manager, Global Communication Systems, Engineered Support Structures, Valmont Industries, Inc.:
5G is forcing the wireless industry and other infrastructure-driven sectors to converge.
With so many sites required, especially in urban areas, MNOs and towercos are looking to utilise as much of existing infrastructure as possible. This includes lampposts and power distribution structures.
At Valmont, we have a very large global footprint of utility, wireless and traffic sites and decades of experience in planning and analysing complex networks of infrastructure. We are also aware of the existing infrastructure available across multiple markets.
Our knowledge and experience in the lighting and utility structures industry certainly give us an advantage. We are able to analyse the existing infrastructure to determine if it is suitable to accommodate a 5G site. If it is, we have products we offer to allow MNOs and towerco to add their equipment.
In cases where the existing infrastructure may be overstressed due to the proposed 5G equipment, we can offer a replacement solution that will match the existing design and aesthetics required.
The level of coordination required among all parties involved in 5G rollouts and planning is great. MNOs, municipalities, towercos, utility companies and system integrators and more all need to come together. Certain 5G tests currently running across Europe are involving as many as seven different companies at a time… And these are just tests!
Other parties that can come into play include security firms, police units and edge computing companies, as a result of all the different functionalities that 5G enables. In summary, the traditional business model that worked in the past simply won’t work with this complex environment.
TowerXchange: Are towercos starting to deploy small cells and DAS? Are they finally positioning as neutral hosts?
Jeff Syslo, Business Line Manager, Global Communication Systems, Engineered Support Structures, Valmont Industries, Inc:
Yes, we are already seeing towercos such as American Tower, Crown Castle and WIG acting as neutral hosts for small cell and DAS networks.
There are several different models that are being utilised and the approach many times is on a case by case basis. I think ultimately the main driver that will continue to push more and more towercos into pursuing opportunities within this space is economics. MNOs simply won’t be able to bear the cost of rolling out, managing, owning and operating such networks, especially with the substantial investments required for 5G. There may be new models employed such as consortiums with various stakeholders. The main driver however will be how to decrease and manage costs through neutral hosting.
