After years with astronomical leverage levels and ratings at the lower end of the speculative grade scale, wireless tower companies across the board are looking up, as they are reaping the benefits of currently predictable cashflows and growing demand for services in a market with high barriers of entry.

This newfound favor is attributable in large part to the increased demand from cell phone companies and other providers of wireless services, which now provide tower companies with a very predictable, high gross margin stream of cash flow, explained David Marsh, a senior vice president in high yield research for Friedman, Billings, Ramsey & Co., Inc. "Once you've constructed the asset, there is very little maintenance expense associated with it," he said.

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