Tower execs say US 5G buildout is slower but not over

Mobile operators are spending less on their 5G buildouts, but that doesn’t mean that the 5G deployment phase is over. Executives at the big-three tower companies —American Tower, Crown Castle, and SBA Communications — said that the tower leasing business is still thriving because mobile operators are still expanding their 5G networks, particularly in their mid-band spectrum, where much of the 5G traffic will be carried. Along with that mid-band expansion, operators are starting to densify their networks with small cells, particularly in urban areas while filling in coverage gaps throughout the network. Jay Brown, President and CEO of Crown Castle, said that, unlike previous upgrade cycles, all big-three operators started deploying 5G simultaneously, which is why 2022's tower leasing activity was much larger than normal. However, American Tower CFO Rod Smith and Jay Brown noted that they are anticipating 5G data traffic to surge in the coming years, leading both to expect demand for tower space to accelerate.