The big 5G winners: Tower companies

“Telecommunications carriers around the world are busy getting ready to deploy 5G — the wireless technology that will usher in lightning-quick speeds and provide faster access to the cloud,” Paul R. La Monica reports for CNN Business.

“But the companies that stand to gain the most from 5G’s expansion may not necessarily be telecom firms. They might not even be wireless chipmakers like Intel and Qualcomm, or entertainment companies like Alphabet-owned YouTube, Netflix and Electronic Arts,” La Monica reports. “US tower operators Crown Castle, American Tower and SBA Communications are likely to be the big winners in 5G’s expansion.”

“The three stocks, which are near record highs, are each up about 10% so far in 2019 and have outperformed the broader market over the past year,” La Monica reports. “Companies like Verizon and CNN owner AT&T need to lease space from the tower owners in order to install antennas, small cells and other wireless equipment for their networks. The tower companies are already benefiting from increased demand for wireless services thanks to 4G mobile technology. That will continue as wireless companies prepare their 5G networks, which really won’t be fully deployed until 2020 at the earliest.”

Read more in the full article here.

MacDailyNews Take: Of course, the same goes for international tower companies, as well.

[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]

3 Comments

  1. This has almost always been the case even going back to the early 2G days and before.

    Getting a tower (or antenna authorization on the sides/top of buildings) has always been a pain as there are so many federal, state, and local authorizations to get it done, but once all the authorizations are in place and the antennas are in place and operational, these towers and building implementations have been huge money makers.

    With the 5G micro cell implementations, more towers will be required, so the cell tower providers will be making even more profits once those new towers are in place. Micro cell installations won’t be everywhere, think high population density areas and high traffic areas like the 405 around LA or the LIE east of NYC, but they will be enough places to make a significant, positive impact on cell tower companies’ bottom lines.

    I expect this to be true for the foreseeable future.

    1. Indeed the patchwork of inconsistent regulations across the USA is a mess in most industries. The solution is NOT deregulation, which in the end results in 50 or more different state approaches, but consistent federal regulation that is EFFICIENT. Too bad the current administration has abandoned wise oversight and is literally appointing no-nothing industry lobbyists to dismantle the very organizations that were put in place to protect the consumer from unscrupulous corporate graft and greed. Now without a federal cop on the beat, you’ll see a flood of uncoordinated state and local regulations come online that will be more painful that the worst federal regulation (which by the way unlike local regulations is always enacted with public inputs, including industry representatives).

      Those trumpanzees and brainless extreme liberarians who hate civilization and federal government act as if they don’t understand the effects of balkanization.

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