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.