Big 3 TowerCos Show Growth in Q1

The first quarter of 2025 proved to be positive and productive for the three public tower companies – American Tower (NYSE: AMT), Crown Castle (NYSE: CCI) and SBA Communications (NASDAQ: SBAC). These companies saw organic revenue increases as their mobile network operator tenants continue to build out their 5G networks. At the end of 1Q25, these towercos together reported 99,707 registered, unregistered and master-leased towers in the U.S., accounting for over 70 percent of towers across the country, according to Inside Towers Database. 

The Big 3 tower companies provide support infrastructure and site services primarily to the national MNOs – AT&T (NYSE: T), T-Mobile US (NASDAQ: TMUS) and Verizon (NYSE: VZ). In terms of site leasing revenue sources, T-Mobile is the biggest customer among each of the tower companies, followed by AT&T, then Verizon. The balance of leasing revenues comes from a handful of smaller wireless service providers. The tower companies have master lease agreements with each of its MNO tenants, giving them a predictable line of sight on future revenues. 

Towerco revenues and organic growth increased in the quarter as each of the Big 3 MNOs are expanding their 5G network coverage. MNOs are deploying spectrum that they own but have not yet activated, particularly in suburban and rural markets with mid-band frequencies, namely C-band, 3.45 GHz and 2.5 GHz. They are also boosting their network capacity in existing markets as mobile data usage continues to increase. Towerco executives expect this activity to continue through 2025, and for the next several years.

That activity is reflected in the tower company financial results in the quarter. Organic site leasing revenue was up across the board by around five percent compared to 1Q24 levels. Moreover, services revenue has increased in response to more MNO activity on towers.

American Tower indicated that leasing trends evident in 2024 carried into the first quarter of 2025. In the U.S., it added that accelerating broad-based mid-band deployments and the early indications of capacity-driven new site demand supported American Tower’s highest quarter of services revenue since 2021.

Crown Castle reported its organic contribution to site rental billings was up 5.1 percent from first quarter 2024, excluding an unfavorable impact from Sprint cancellations. Having sold its fiber and small cells business in March, as Inside Towers reported, the company is focusing on streamlining and growing its business as “the only pureplay tower company in the U.S.”

Similarly, SBA indicated that carrier activity levels in the U.S., represented by both new leasing sign ups and services volumes, continued to grow in the quarter. The company also saw its U.S. leasing and services application backlogs increase from year-end, and it expects sustained activity levels throughout 2025.

While the Big 3 towercos reported increases in their services revenues, construction activity tends to be limited. The towercos support their MNO tenants with site acquisition, and permitting and licensing services along with site planning and structural engineering services.

By John Celentano, Inside Towers Business Editor