As the largest telecom carriers continue to advance their network initiatives, many tower companies are noticing an alarming trend that they need to adjust to quickly and succinctly. Instead of new tower construction, many providers are opting to add equipment to existing network towers.
It seems as though most of the new tower construction is moving internationally. Companies like AT&T have their eyes on expansion and tower construction in Mexico. American Tower is continuing its expansion in India.
So what is a US tower company supposed to do to continue to not only get the bids but be able to turn a profit? Below are some ideas and risks to keep in mind.
Many tower companies are choosing to follow the work they know into places unknown. Besides being in a new area and having to locate local resources, many firms have experienced financial loss by taking on a job not backed by a multinational client sponsor. Before growing your business internationally, you need to be aware of a myriad of things.
Local government laws may have immigration restrictions, political risks, and complicated tax laws. You may have to obtain a permit to work in most countries, just as you do in the United States. This can create another set of hurdles to overcome as you deal with potential delays in customers, imports, expenses, and material fees.
Striking out on your own to gain international work can be expensive, time-consuming and risky. But does choose to avoid the risk exposure mean you’ll be left behind as the telecom industry expands?
Not necessarily, those unwilling to take on the risk of moving their business overseas can still benefit from international work by finding a multinational company to sponsor the job. Getting a contract from the U.S. government will also help mitigate expense, risk and financial loss. The U.S. Department of State offers several resources and updates on the latest international projects being invested in and the other companies backing them. If you’re already a prime contractor for some of these multinational companies, you may be able to solicit the work overseas with little to no expense to your company. They already know you and the great work that you do, so it makes sense for them to bring you along as they expand. Make sure everyone has a passport and is ready to travel.
Be sure to remember TCI Business Capital is your partner in your telecom company’s growth. We have many resources available to assist you with that towering decision.
For those who choose to keep work close to home, fear not, the industry still needs you, but you’ll have to adjust the day-to-day functions of the services you provide. As in an expanding industry, remaining flexible as a service company will not only get you those jobs, but it will continue to allow you to turn a profit. Staying informed of industry updates and continuing education will keep your company towering above the rest.
So, don’t be afraid to move with the work, but maintain some savviness as you negotiate heights of international tower construction.
TCI Business Capital is a leading invoice financing company. Since 1994, TCI Business Capital has provided cash to 1000’s of companies involved in telecom. trucking, oilfield services, staffing, and other industries. For a free, no-obligation invoice financing consultation and quote, call (800) 707-4845.
Author: Angelique C.