Cell Tower REITs: Fireworks Abound As Competition Heats Up
- No missed rents here. Amid the coronavirus pandemic, the high-flying cell tower sector is thriving. Cell Tower REITs have jumped 20% this year, one of three sectors in positive territory.
- The cellular industry has seen plenty of fireworks over the last two years, underscored by T-Mobile's now-completed acquisition of Sprint and the emergence of Dish Network as a fourth competitor.
- Dish Network is officially a cellular carrier with this week’s acquisition of Boost Mobile. Questions remain about Dish’s ability to raise necessary capital to fund its ambitious network build-out plans.
- Cellular network usage has surged amid the stay-at-home orders as businesses and individuals stay connected via virtual interaction. Signs of stress in capacity enforce the need for additional network investments.
- Will Satellite REITs emerge? Elon Musk's SpaceX continues to make headway on its ambitious low-orbit satellite network. While unlikely to replace towers, these networks may alter industry competitive dynamics.
