Tower Companies Report Strong Q1 Leasing Activity
American Tower and SBA Communications are both seeing the strongest activity in years. SBA called Q1 “the best quarter of domestic leasing in several years,” with revenue growth driven primarily by new colocations. American Tower also reported a sequential increase in site applications and service revenues, noting most of their growth came from amendments—but with early signs that colocation activity is picking up.
Crown Castle echoed these positive trends, stating activity levels were solid, though they don’t expect meaningful acceleration over the rest of the year.
Fixed Wireless Fuels Carrier Growth
While Verizon lost nearly 300,000 postpaid phone subscribers and T-Mobile gained almost 500,000—below Wall Street expectations—all three major carriers reported strong growth in fixed wireless subscriptions. Together, AT&T, Verizon, and T-Mobile added more than 900,000 new fixed wireless subscribers last quarter.
This trend is expected to continue. Fixed wireless has emerged as a bright spot for carriers still struggling to monetize their 5G investments. It allows them to serve areas lacking wired broadband and compete with traditional wireless broadband providers.
Market Watch: Industry Shifts That Could Impact Tower Owners
- US Cellular’s Tower Management Strategy Post-Sale: Once T-Mobile’s acquisition of US Cellular closes (expected mid-year), US Cellular will transition into a pure-play tower company. This will likely lead to a more aggressive lease management approach, including increased pressure on rents, potential site decommissions, and a stronger push for colocations to drive profitability.
- Dish Network Faces FCC Scrutiny: In the days following its earnings call, the FCC announced it was undergoing a review into whether Dish was sufficiently utilizing its spectrum to meet its defined coverage requirements. If the FCC finds Dish in violation, it could jeopardize its access to valuable, unshared spectrum—raising new questions about its long-term role in the wireless ecosystem.
- Cable Companies Continue Gaining Wireless Market Share: Comcast and Charter—using Verizon’s network—added over 800,000 mobile lines in Q1, pushing their combined total above 18 million. Comcast’s MVNO agreement with Verizon is up for renewal this year, which could have implications for Verizon’s wholesale revenues and broader market dynamics. Additionally, Charter and Cox announced a post-earnings merger aimed at boosting their performance in both wireless and wireline markets.
Key Takeaway for Cell Tower Owners
The wireless industry is experiencing an upswing. All three major tower companies are reporting their highest levels of activity in years—and this momentum is expected to continue, especially as carriers push to complete their 5G buildouts by 2026. After that, further network densification will be needed to meet rising data demands.
At the same time, industry dynamics are shifting. US Cellular’s pivot to tower ownership may bring more aggressive lease strategies. Dish’s future is uncertain. And new technologies like satellite connectivity are beginning to enter the picture.
The Bottom Line: Tower assets remain highly valuable —but maximizing their long-term potential will require active lease management and staying informed as the industry evolves.
EARNINGS CALL SUMMARIES
Crown Castle reported 5.1% organic growth in the first quarter and reaffirmed its full year projection of 4.5% organic growth, excluding Sprint churn. The company stated that its transaction with Zayo and EQT to sell its fiber and small cell business segments is expected to close in the first half of 2026. Additionally, the company noted that it plans to spend $150-250 million this year on tower capex, purchasing land underneath its towers, and other technology and systems supporting its tower business.
SBA reported a 5.2% gross, 1.0% net domestic organic growth rate year-over-year due to 4.2% churn, of which 2.8% was related to Sprint consolidation. Outsized Sprint churn is expected to continue in 2025 and 2026 before a decrease in 2027. The company stated that leasing activity accelerated in the first quarter for its best quarter in several years, with 75% of the activity coming from colocations, on a revenue basis. The company noted that around 60% of the leases from the three major MNOs have had mid-band 5G upgrades on its sites. Finally, the company expressed optimism that the new administration is more interested in selling additional spectrum in the coming years.
American Tower reported 3.6% net domestic organic tenant billing growth year-over-year, or 5.0% when excluding the impact of Sprint churn. The company is projecting organic growth below 5% for the next two quarters due to Sprint churn, before an increase to 5.5% in the fourth quarter. The company noted that a majority of activity, on a revenue basis, is still coming from amendments but there are early signs of an increase in densification colocations. Finally, the company provided additional color on the mid-band 5G upgrade status of each carrier, estimating AT&T at 50%, Verizon at 65-70%, and T-Mobile at 80%, with the expectation that all the carriers will have upgraded substantially all its networks by the end of 2026.
Verizon Wireless reported a total postpaid phone subscriber net loss of 289,000 for the quarter, driven by a net loss of 356,000 in the consumer segment and gain of 67,000 in its business segment, as well as a fixed wireless subscriber net gain of 308,000. Capex expectations for 2025 remain around $18 billion, and the company still anticipates upgrading 80-90% of planned sites with C-Band by the end of the year. Finally, the company noted that its MVNO contracts are up for renegotiation this year.
AT&T reported postpaid wireless subscriber net adds of 324,000 for the quarter as well as 181,000 subscriber additions for AT&T Internet Air, its fixed wireless service. Capex for the first quarter came in at $4.5 billion, with the full-year expectation still at $22 billion. Finally, the company noted that its continuing network modernization will open new markets for fixed wireless.
T-Mobile reported postpaid wireless subscriber net adds of 495,000 for the quarter and fixed wireless net adds of 424,000. Its 2025 capex is still expected to be $9.5 billion, slightly higher than 2024 levels. Finally, the company noted that its current wireless build focus is on new macro sites.
Dish reported that they added 150,000 wireless subscribers in the quarter, bringing its total mobile subscriber count to 7.15 million, with no breakout between postpaid and prepaid. The company noted that its network now covers over 80% of the US population with 5G from 24,000 sites, which meets its 2025 FCC requirements. Finally, the company stated that it is moving to a more success- based build model for new sites, that is building in the areas where its MVNO roaming costs are highest.
US Cellular reported that its deal with T-Mobile, to sell its wireless operations and a portion of its spectrum, continues to progress with closing still anticipated in mid-2025. The company noted that after the transaction closes it expects AT&T and Verizon to look at the towers where US Cellular was previously a roaming partner. Finally, the company stated that it prefers to sell, rather than lease, its remaining spectrum holdings.
Comcast and Charter reported that they added 322,000 and 514,000 wireless subscribers, respectively, for the quarter, bringing its total combined mobile subscribers to over 18 million. Both companies still see a long runway of subscriber additions as its mobile penetration among its existing broadband customers remains low, and Charter specifically noted that they have deployed CBRS spectrum in 23 markets.
