New Cell Phone Towers Are Not The Answer

Published by Seeking Alpha February 10, 2010

Cramer's Stop Trading! AT&T's Towers of Babble

"Cramer prefers Verizon (VZ) over its rival AT&T (T) which has been having too many problems lately with its network. Complaints from Apple (AAPL) iPhone users over lost calls and slow service are too frequent, and Cramer would not be bullish on AT&T until it builds more cell phone towers while not letting an increase in capital expenditures threaten its strong dividend. While Cramer is "not giving up" on AT&T, he thinks Verizon is the superior stock right now."

Cramer has it wrong and he is going to be waiting a long time for new cell phone tower build-outs from AT&T and Verizon because of government bureaucrats who stand in the way.  4G or WiMax is not the answer either as many big companies want you to think. The picture above is just one of thousands of local fights between the city and neighbors who don't want new towers.

The real problem that the industry won't tell you is most people talk on their mobile phone 50% indoors.  So the real solution here is when Verizon and AT&T announce their plans for mini cell phone towers in the home or also known as femtocells.  Other competing solutions include distributed antenna solutions (DAS) but are more more expensive to build out and typically require 2 carriers to make a build-out profitable.  Why the mainstream media has not picked up on this yet is beyond me.  Some expect this to be as soon as February or March of 2010.  

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