All the Waves You Cannot See with David Grain

FEG Insight Bridge

In this episode of the FEG Insight Bridge, Greg Dowling welcomes David Grain, CEO of Grain Management as he discusses the forces shaping our interconnected world. This discussion journeys through the dynamic landscape of the telecommunications space, exploring the evolution of cell towers to the invisible waves of spectrum and the essential role of fiber.

Explore the intricacies of spectrum, raw land in the sky, and why it serves as the fundamental backbone of our ever-evolving communication ecosystem. David unravels a spectrum of opportunities, from cell tower investments to navigating the explosive growth of global mobile data consumption, providing a comprehensive view of the dynamic world of telecommunication investing.

Key Takeaways

• While the U.S. market for cell towers has become less lucrative, due to increased interest, Grain identifies opportunities in spectrum licenses, especially beyond U.S borders.
• Focused on tier two and tier three markets, Grain recognizes the outperformance of regional players in the realm of fiber networks and data centers, leveraging their agility against larger competitors that are often overshadowed in the market.
• Driven by data explosion, AI, and an expected 8x rise in global mobile data consumption by 2030, Grain Management and similar firms are crucial in deploying $6-10 trillion for network improvements from 2020 to 2030.

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Chapters

1. Introduction (00:00:00)

2. Episode Introduction (00:00:30)

3. Background on David Grain and Grain Management (00:01:11)

4. Evolution of Opportunity in Cell Towers (00:05:59)

5. The Intricacies of Spectrum (00:07:04)

6. Determining the Right Value (00:12:35)

7. Carrying Costs on Invisible Waves (00:14:05)

8. Buying Spectrum and Deciding Fair Market Value (00:15:26)

9. Fiber, Data Centers, and Regional Dominance (00:16:43)

10. Navigating the Data Explosion (00:21:55)

11. Locating the Right Portfolio Bucket (00:27:54)

12. Telecommunication Resources (00:30:37)

13. Closing Remarks with David Grain (00:31:54)