Crown Castle Jumps on Report of SpaceX Tower Lease Discussions
Crown Castle shares rose 12% after Bloomberg reported that SpaceX is discussing leasing space on its towers as part of a plan to build a nationwide wireless network with at least 80,000 U.S. cell sites. American Tower also gained, while AT&T and Verizon fell on concerns about a possible fourth national carrier. No agreement has been announced, and Crown Castle's 2027 outlook is expected early next year.
Bloomberg reported after Thursday’s close that SpaceX is discussing tower leases with Crown Castle as part of a plan for at least 80,000 U.S. cell sites; the potential deals could reach billions. Crown Castle shares rose 12%, and American Tower gained 7%, while AT&T and Verizon declined.
The talks arrive as Crown Castle has divested fiber and small-cell assets and as DISH and Sprint equipment leaves its towers. Analysts expect revenue to bottom at $4.03 billion this year and reach $4.20 billion by 2028, with management calling 2026 the low point for organic growth. No lease is signed; the 2027 outlook, due early next year, may be the first place to see effects.
If a fourth nationwide network emerges, consumers could see more competition and coverage options, though incumbent carriers may face pressure on pricing and investment. Tower owners and their shareholders could benefit from new lease revenue, while local communities may see more infrastructure siting activity. The outcome remains uncertain because no agreement is signed, so effects on service quality, prices, and deployment pace may take years to become clear.