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Connectivity '24: Comm Towers

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Bull / Bear Details has the investment thesis and bull/bear points. Overview is monitoring guidance (hiring, forums, second-order trends, search keywords, Google Trends, datasets).

Bull / Bear Details

The current thesis for the communications towers sector, encompassing AMT, SBAC, and CCI, is bearish as of Spring 2025. The sector is facing significant headwin

Thesis

The current thesis for the communications towers sector, encompassing AMT, SBAC, and CCI, is bearish as of Spring 2025. The sector is facing significant headwinds due to increased competition from emerging technologies like satellite broadband and small cells, which are disrupting traditional tower business models. Additionally, regulatory shifts and changing consumer demand patterns are putting pressure on tower valuations. Despite these challenges, there are potential opportunities in urban areas where small cells and ORAN (Open Radio Access Network) could provide new growth pathways.

Bull case

  • Increased competition from satellite broadband is reducing the demand for traditional tower infrastructure.

  • Regulatory shifts are directing funding and attention toward satellite and alternative broadband solutions.

  • Urban small-cells and ORAN are gaining traction, potentially diminishing the need for large tower deployments.

Bear case

  • Urban areas still require robust network infrastructure, providing opportunities for small cell integration with existing tower networks.

  • ORAN may create new revenue streams by enabling network sharing, potentially benefiting tower companies that adapt.

  • Telecom carriers continue to invest in infrastructure improvements, which could stabilize demand for tower-based services.

Key Metrics3 rows
MetricCadenceWhat It SignalsUpdate Source
Small cell deployment rateQuarterlyTracks expansion of small cell networks versus towersGoogle_Sheets
ORAN deployment contractsQuarterlyShows adoption of open standards and impact on towersGoogle_Sheets
Satellite broadband adoptionBiannualIndicates shift in consumer and regulatory preferencesGoogle_Sheets

Constituents

  • AMTT3
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  • CCIT3
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  • SBACT3
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