U.S. Towers New Build Pipeline Is Significant
The U.S. wireless market can expect robust new tower construction activity for the next several years. Our confidence stems from the latest analysis of the Inside Towers Database that is updated daily with data drawn from the FCC Antenna Structure Registration (ASR) and Universal Licensing System (ULS), and FAA Determination of No Hazard (DOB) databases.
We currently show that there are a total of 16,138 tower registrations in the Granted status. Of that total, telecom towers comprise 8,214 registrations among mobile network operators, public and private tower companies. The balance includes 7,924 non-telecom towers used by government agencies, utilities and energy companies, railroads, industrials, education and more. Keep in mind the Granted status does not indicate a timeline as to when these sites may be built, only that they have been registered.
Private tower companies have the largest block with 5,126 Granted towers. This group is led by Tillman Infrastructure with 761 sites, Titan Towers with 454, Vertical Bridge entities with 443, Harmoni Towers with 290 and CitySwitch with 196.
The Big 3 MNOs are also planning for a total of 2,600 sites through various operating entities. Verizon Wireless leads the pack with a total of 1,773 Granted towers followed by AT&T Mobility with 480 and T-Mobile with 347.
Public tower companies are less active but are planning for 488 new sites as well. Crown Castle has 318 Granted sites, American Tower shows 100 followed by Array Digital Infrastructure with 51 and SBA Communications with 19.
“Granted” status does not mean “Constructed.” Rather, it is an indication of the forward-looking activity among mobile network operators, public and private tower companies. “Granted” means the FCC has approved the ASR application (FCC Form 854) and issued an ASR authorization for that structure. This means it is an active registration in the system.
But before being granted an ASR number, a tower owner must obtain several approvals and clearances. First, the tower owner must obtain a valid FAA DOB “no hazard” determination to ensure the structure meets FAA notification criteria, generally based on height or proximity to airports.
In addition, the tower owner also must complete the FCC’s National Environmental Policy Act, or NEPA, notification process, which requires an environmental review for new towers to ensure impacts on ecological, aesthetic, historic, and cumulative effects are considered.
Because ASR is a federal action, the tower owner must complete National Historic Preservation Act (NHPA) Section 106 review, which includes: State Historic Preservation Office, or SHPO, review, Tribal consultation when required, along with the Identification of historic properties and cultural sites.
More importantly, the tower must obtain state or local government approval and permits for the site before construction can begin. The “Constructed” status is applied after the registrant files the required notification that permits were issued and that construction is complete.
Note that some Granted towers may never be built for a variety of reasons – denied permits, lack of financing, change of business plans.
Nonetheless, the Inside Towers Database shows that new tower construction in the U.S. has been on a run-rate of roughly 2,000 new towers a year for the past three years. We expect the industry will maintain that pace as the MNOs continue to densify their networks, and expand both capacity and coverage as more spectrum becomes available to meet steady mobile data demand growth.
By John Celentano, Inside Towers Business Editor
