Since the beginning of 2025 through the end of March, the average stock prices of the three public tower companies – American Tower (NYSE: AMT), Crown Castle (NYSE: CCI) and SBA Communications (NASDAQ: SBAC) have increased 13 percent. By comparison, the average combined stock prices of the other 11 companies – fiber companies, data centers, cable companies and diversified infrastructure companies – that make up our Digital Infrastructure Value Index have declined 15 percent.
The main reason for the tower companies’ positive performance is that their mobile network operator tenants have stepped up their own network expansion activities. The Big 3 MNOs have more spectrum to deploy, particularly in mid-band frequencies, to extend their 5G network coverage and capacity to small town and rural markets across the U.S. Inside Towers Intelligence forecasts the U.S. wireless capex will grow at a low to mid-single digit CAGR for the next 3-4 years.
The towercos report that MNO activity is manifested with requests for new colocations outpacing the demand for amendments on existing sites. Their guidance for 2025 reflects organic tenant billings growth of 4-5 percent along with increased activity in their site services business. Inside Towers has reported that the Big 3 towercos have taken steps to revamp their portfolios and improve their balance sheets, setting the stage for continued growth.
The chart shows an inverse relationship between tower company stock prices and 10-year treasury bond yields that serves as a benchmark for various interest rates, including mortgage rates, corporate bonds, and other long-term loans. When bond yield rates are down, towercos have more financial flexibility for financing their operations and undertaking M&A activity. Investors have responded accordingly.
For more information on our digital infrastructure market analyses, visit: insidetowers.com/intelligence.
By John Celentano, Inside Towers Business Editor
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