Marketing
The Market Competition
Gulf States Towers’ business is targeted at a specific market segment with a small number of key regional players. GST personnel provide reliable, professional work that has allowed the Company to grow rapidly over the past two years. The Company’s continued strategic alliance with its carriers has emerged relationships with other wireless carriers and has helped to make GST the premier wireless infrastructure provider in the Southeast.
GST has signed several ten-year lease agreements with Alltel Communications for previously constructed towers, and Alltel’s future interest in the Company is evidenced by the 25 projects in backlog. Wireless telecommunications and its related infrastructure are promising, high-growth industries, and the Company is positioning itself to be a leader in wireless tower leasing.
GST’s success in garnering attention from larger carriers is based on providing a better service at a better price. By keeping administrative costs low and subcontracting tower construction, the Company is able to service its customers for a lower cost than many competitors. Consequently, management believes that very few significant competitive threats exist for the Company.
Marketing Activities and Pricing
Gulf States Towers’ marketing efforts are conducted primarily through word of mouth and electronic networking. Wireless carriers often seek out wireless tower locations, and the Company’s towers stand out as quality sites. These sites are clearly labeled with GST contact information, and site pictures are displayed on the Company’s website. Company management also uses a focused email distribution list to contact wireless carriers regarding the Company’s services.
GST’s pricing strategy is designed to be more attractive than larger tower leasers. As indicated, they keep administrative and production costs low, enabling us to charge reasonable prices on equipment we own. This model is attractive to the lessee, as it offers them a less expensive leasing option and does not require that they make capital investments.