Alex Pettee, CFA
Cell Tower REITs: 5G Is Here
Throughout the coronavirus pandemic, the high-flying cell tower sector has thrived. Cellular network usage has surged as businesses, schools, and individuals stay connected via virtual interaction
5G Is Here. Apple's upcoming iPhone 12 launch represents the true "arrival" of 5G, the much-anticipated next-generation mobile network that promises to usher in a new era of technological innovation.
Cell Tower REITs will be the “hub” of these 5G networks, augmented by higher-speed small cells. High-power macro towers provide the most economical mix of wide coverage and capacity.
Fixed wireless broadband – using a cell network for home broadband - will be 5G’s true “killer app” and will fundamentally disrupt the telecommunications space, likely to the benefit of consumers.
Cell tower REITs continue to benefit from favorable competitive positioning within the telecommunication sector. While these REITs are priced for perfection, low supply and high demand should translate into continued pricing power for cell tower REITs.
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