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Why Capital Asset Management is Essential for Telecom Tower Operations
September 30, 2020 at 6:00 AM
telecom tower capital asset management

Telecom towers are significant, expensive capital assets. Similar to other assets like properties, stocks, or bonds, managing these capital assets is essential to ensuring long-term profit potential. For businesses, capital assets are virtually always not intended for sale within the normal course of that organization's operations. This means that sound capital asset management is key to keeping these assets—like telecom towers—profitable as long as possible.

Here’s how relying on capital asset management benefits your telecom tower operations.

Why capital asset management?

Because telecom towers and associated equipment are often costly investments, managing their proper functionality, longevity, and all other performance-related concerns is central to your bottom line.

Your telecom towers should remain a significant portion of your assets, recorded on your balance sheet, expensed over their lifetime, and inspected and/or updated regularly. Expensing your telecom towers throughout their use period helps ensure you are matching costs with the revenue generated during that same period.

But most importantly, capital asset management reduces your risk of financial loss while increasing benefits and keeping steady service available to your clients or customers. That’s why keeping up with your capital assets can mean the difference between financial growth and a painful loss.

Maintaining towers’ performance

Keeping a watchful eye over your telecom towers’ functionality and structural integrity requires time and dedication—investments that pay off in both the short and long term. The same is true when you’re literally building your towers from the ground up. Investing in quality tower design, construction management, and maintenance means preventing issues and protecting them from problems, like:

  • Poor performance and functionality
  • Weather-related events
  • Failure and collapse

Give yourself insight into your capital assets

Like any other asset, your telecom towers and associated equipment are expected to contribute to your revenue generation over a long period. But to ensure this, you must know exactly how well your towers are performing, as well as any other essential equipment.

Specifically, having easy access to this information helps you avoid unnecessary purchases, inspections, and updates, as well and diverting funds to items that you do not need. Moreover, it allows you to better understand your towers’ condition and performance throughout its lifetime.

Similarly, setting yourself up for easy access to your capital assets’ distribution gives you insight into which towers have space left to perform best and deliver optimal service to clients. Not only does this give you clarity, but it helps you better serve your clients to help ensure they stick around for the long haul because they are satisfied with the towers’ performance.

However, not all clients guarantee money coming in. In some cases, clients do not always pay on time—or at all. If you have a client who rents your tower or other capital assets, management of those assets gives you real-time insight into where they stand on payments. If they are behind, it may be time to cut ties with them and pursue other, more profitable opportunities.

Trust Tower Engineering Company with your capital assets management

Managing your capital assets requires dedication. For 47 years, we’ve helped clients design, build, maintain, and manage their telecom towers, and we’re here to do the same for you. Want to learn more about us? Let’s talk.