Crown Castle, a US tower company, has recognized carrier spectrum deployment as a key area for growth in the future. This statement was made prior to the upcoming C-band spectrum event in the US. The FCC has planned to auction 160MHz of upper C-band spectrum by July 2027. – Wikimedia/ParaguaneroSwag at English Wikipedia.
Historically, the introduction of new spectrum has played a crucial role in driving network investments, and we believe that the industry’s spectrum pipeline continues to support long-term infrastructure requirements, according to Chris Hillabrant, CEO of Crown Castle, during the company’s Q3 earnings call this week. While that spectrum will be available next year, Hillabrant is optimistic about the activity in the market that has already occurred.
He cites AT&T’s $23 billion acquisition of 3.45GHz and 600MHz spectrum from EchoStar, Verizon’s acquisition of AWS3 licenses, and SpaceX’s $205 billion acquisition of AWS4, H Block from EchoStar, and 800MHz spectrum from Grain Management. These transactions, he observes, instill confidence in the tower industry that mobile carriers are genuinely committed to network investments. “These transactions signify the wireless industry’s dedication to aggressively investing and securing the necessary spectrum resources to support future terrestrial wireless network expansion,” he said. “The recent spectrum transactions, despite being somewhat delayed with the AT&T acquisition of 600MHz, Verizon’s acquisition of AWS3, and now SpaceX’s acquisition of 800MHz, demonstrate the industry’s commitment to investing in networks.” All of these factors contribute positively to the construction of towers.
Upon inquiry about AT&T’s utilization of EchoStar spectrum, currently being deployed for their 5G network, Hillabrant predicted a faster implementation than the company’s 600MHz section. He mentioned, “The consumer has already spent $23 billion on the spectrum.” It holds great worth.
Hillabrant believes that they should expedite the deployment process, considering the significance of the recently acquired addition to their spectrum portfolio, he said. This relates to the opportunity with the SpaceX carrier. SpaceX, with its recent purchases and discussions about launching a mobile network in the US, was a major topic of conversation during the earnings call.
Currently, the US has three main carriers: AT&T, Verizon, and T-Mobile, and while a fourth carrier didn’t come to fruition with EchoStar’s Dish Network, SpaceX’s Elon Musk is intending to compete directly with the ‘Big 3.’. In this week’s earnings call, Musk stated that the satellite launches and spectrum acquisitions will act as a foundation for Starlink Mobile to evolve into a prominent mobile carrier within the US.
