Yesterday, the nation’s largest provider of wireless infrastructure, Crown Castle, predicted that the current level of investment by U.S. wireless carriers will be sustained if not increased. According to the CEO of Crown Castle, Verizon and T-Mobile have spent the most in 2015 on network spending while AT&T and Sprint were expected to spend the most going forward in 2015.
“The U.S. wireless market has one of the most compelling wireless investment stories in the world. With strong unit economics and relatively high ARPU reflecting U.S. consumers’ demand for mobile data and their willingness to pay for mobile services, U.S. carriers were able to generate positive incremental returns on their capital investments,” Moreland said during Crown Castle’s quarterly conference call with investors, according to a Seeking Alpha transcript of the event. – FierceWireless
Additionally, as New Street Research noted, tower revenue is starting to rise, giving carriers another source of revenue.
- “Last month, telecom lobbyists argued to the FCC that aggressive regulation would slow down the pace of industry investment in network upgrades, to the tune of $45 billion over the next five years.” – Washington Post
- “Internet speed growth would slow down. Capital markets are reluctant to fund highly regulated industries — common carrier reclassification is basically an investment tax that would make it harder to upgrade networks and keep increasing consumer speeds.” – NCTA
- “We do not support reclassification of broadband as a telecommunications service under Title II. Doing so would harm future innovation and investment in broadband.” – Comcast, November 2014 statement
- “Regulating broadband service under Title II … will create unnecessary uncertainty, lead to years of litigation and threaten the continued growth and development of the Internet.” – Time Warner Cable statement
- Title II reclassification “would actually impose barriers to broadband infrastructure investment.” – AT&T, July 2014 statement
This really shouldn’t shock anyone looking at the carriers bottom lines. Verizon had previously admitted to investors that net neutrality would likely have no affect on any future investment.