In Play with a World Leader
- $3.31M Market Capitalization
EasTower Wireless Inc. (ESTW.V) announced today that it has entered into a Master Service Agreement (MSA) with one of the world’s largest tower operators. In addition to signing an MSA with the Company, the client has invited EasTower to support them in further mandates in three of their tenancy markets, including Nashville, Louisville, and Knoxville, all of which are situated in Tennessee.
“We are pleased to announce the successful execution of an MSA with a leading telecommunications client, placing EasTower as one of their approved contractors for future developments,” said Vlado P. Hreljanovic, CEO of EasTower.
Earlier this month, on June 2, 2022, EasTower announced that it had won a new site build (NSB) from the largest national tower owner and operator in the United States (US). Just prior, on May 25, 2022, the Company announced a purchase order for a substantial NSB from another major player in the US tower infrastructure market. In the last two months, EasTower has secured multiple NSBs and purchase orders.
Funding 5G Growth
EasTower largely attributes its recent success to the federal government’s $65 billion commitment to broadband infrastructure development. To be specific, the Company is referring to the Accelerating Broadband Connectivity Act of 2021, which was passed in November of 2021. According to congress, this bill established the Accelerating Broadband Connectivity Fund.
Through this fund, the Federal Communications Commission (FCC) will offer additional funding to certain terrestrial telecommunications carriers for specified broadband projects. With this in mind, companies like EasTower, a company responsible for constructing, installing, and maintaining 5G and 4G wireless systems, would naturally benefit.
“The largest capital market transaction this 2022 calendar year was with a very large tower builder and a bulge bracket bank for over $2 billion. This is a prime example of how the 5G market continues to be resilient to risks of inflation and potential economic recession and remains to grow despite the current market uncertainty,” continued Mr. Hreljanovic.
Referring back to EasTower’s latest news, through this MSA, the Company now has a significant foothold in Tennessee. In particular, 5G in Knoxville is still in its infancy, however, major providers such as AT&T and Verizon have already set their sites on the city. That being said, Knoxville’s tower infrastructure is poised for growth, presenting an opportunity for companies like EasTower.
North America Leads the Way
According to Precedence Research, the global 5G services market accounted for USD$64.54 billion in 2021. Looking forward, this market is expected to exceed USD$1.87 trillion by 2030, expanding at a compound annual growth rate (CAGR) of 44.63% between 2022 and 2030. While the Asia-Pacific region is the fastest-growing, North America represents the largest segment of the 5G services market.
In particular, the US leads the North American segment, which is expected to garner more than 270 million 5G subscriptions, accounting for an estimated 60% of all mobile subscriptions. With 5G already deployed in over 1,500 cities across more than 60 countries globally, 2022 is shaping up to be a transformative year for 5G.
Don’t believe me? According to the GSMA, a global organization committed to unifying the mobile ecosystem, the number of 5G global connections is expected to reach one billion this year and double to two billion by 2025. This suggests that 5G connections will account for a quarter of all mobile connections.
EasTower’s share price opened at $0.065 today, up from a previous close of $0.04. The Company’s shares were up 37.50% and were trading at $0.055 as of 1:10 PM EST.