T-Mobile’s Acquisition of U.S. Cellular: The First Piece to Fall

T-Mobile moved first, announcing in mid-2024 that it would acquire much of U.S. Cellular’s spectrum and subscribers. U.S. Cellular retained ownership of roughly 4,400 towers, while T-Mobile agreed to lease space on about 2,600 of them under a 15-year deal.

For tower owners, the deal was a double-edged sword. On one hand, it preserved lease continuity for sites T-Mobile decides to keep from the U.S. Cellular network. On the other hand, it removed another independent carrier from the market, potentially hindering growth in collocation and amendment activities.

Fortunately, U.S. Cellular focused on owning and building its own towers rather than collocating, so the loss of U.S. Cellular won’t have a measurable impact on future lease-up.

Unfortunately, for tower owners that do have U.S. Cellular as a tenant, there is a higher-than-average probability that they will eventually terminate. While some sites may be kept by T-Mobile if there are no T-Mobile sites in the area, most will not be retained.

The transaction reinforced what many in the industry already sensed: consolidation was accelerating.

DISH’s Exit: There Goes the Bishop

DISH’s path was more drawn out but is likely to end with the same conclusion. After years of struggling to scale its wireless ambitions, DISH (via Echostar) has opted to sell its 600 MHz and 3.45 GHz spectrum holdings—valued at roughly $22.7 billion—to AT&T.

A subsequent deal with SpaceX has Echostar transferring its AWS-3 spectrum to SpaceX. These two deals will effectively end DISH’s run as a facilities-based carrier and transfer valuable mid- and low-band spectrum to AT&T and SpaceX. (There may be more spectrum transfers coming up.)

DISH’s 24,000-site buildout between 2020 and 2024 represented nearly 60%–70% of all new macrocells constructed in the U.S. during that period. In other words, DISH alone accounted for a substantial portion of the “same tower” growth. That surge provided temporary tailwinds for the tower industry.

Many DISH-related leases are vulnerable to termination in the near term, though very few have been terminated to date. The spectrum sales by Echostar are still pending regulatory approval; therefore, most leases continue as is—for now.

Still, tower buyers are already pricing in future risk: DISH leases are valued at a fraction of comparable agreements with AT&T, Verizon, or T-Mobile.

To add insult to injury, DISH has sent letters to some tower owners indicating that they believe they are “excused” from their lease obligations due to “frustration of purpose,” alleging that because the FCC pushed them to sell spectrum, they are no longer obligated to pay lease payments.

AT&T’s spectrum acquisition, once approved, isn’t likely to trigger a surge in new tower builds. Instead, most of that spectrum will be deployed through amendments on existing AT&T sites—offering incremental but modest rent increases for landlords and tower owners.

SpaceX is unlikely to build a significant terrestrial network. The broader impact is one of consolidation and efficiency, not expansion.

Together, T-Mobile’s U.S. Cellular deal and AT&T’s pending DISH spectrum acquisition complete the long-feared contraction of the U.S. wireless market.

What It Means for Tower Owners and Lessors

The move from four national carriers to three fundamentally reshapes the tower business model.

• Less organic growth: With fewer carriers competing for coverage, the number of new colocation opportunities has shrunk. Tower owners can no longer count on new amendment activity from DISH or U.S. Cellular.

• Near-term churn: Expect that many DISH and U.S. Cellular agreements will be terminated in the coming years, especially once FCC approvals are finalized.

• Reduction of valuation: DISH and U.S. Cellular agreements are already being discounted due to uncertainty.

• Shift in leverage: The remaining carriers hold greater negotiating power, which may push down renewal rates and rent escalations.

• Valuation reset: Investors are recalibrating expectations, applying slightly lower multiples for tower asset purchases and prioritizing AT&T, Verizon, and T-Mobile tenancy. Scarcity of available tower assets is helping keep valuations high.

• More predictability: With three major participants left, the risk of further consolidation—and future churn—drops significantly.

For tower owners, the next phase isn’t about adding tenants. It’s about protecting value, optimizing existing leases, reducing costs, pursuing non-traditional tenants, and maximizing amendment opportunities.

Looking at the Chessboard

As the dust settles, 2025 marks a turning point for the tower industry. The sector is shifting from an era of carrier-driven expansion to one of consolidation and strategic management.

Owners who proactively audit their leases, strengthen relationships with core tenants, aggressively seek tertiary tenants, and position their assets for amendment income will fare best.

Let’s be clear: the tower business is still a great business. But the absurdly high-growth years may be behind us, and the margin for error is smaller. Proper site selection is more important than ever, and active site management and marketing are critical.

If you’re a tower owner and want to discuss the state of the industry or how we can help your tower business succeed, we’d be delighted to hear from you.

Time to Take Your Pieces Off the Table?

For tower owners, this consolidation wave isn’t just an industry headline—it’s a signal to reassess strategy. Whether you’re holding assets long-term or considering a sale, understanding how these shifts affect tower valuations and buyer demand is critical.

That’s where SteelTree Partners comes in.

Most brokers put out a memo and step back, leaving you to handle questions, due diligence, and tough buyer conversations. That’s not how we work.

Here’s how SteelTree Partners stands apart:

✅ We stay involved until closing—no disappearing acts.
✅ We visit towers when it makes sense to fully understand the assets.
✅ We help prepare due diligence and review it beforehand to avoid surprises.
✅ No “preferred buyers”—you get full market exposure.
✅ We’ve owned and operated towers and negotiated thousands of leases.
✅ We take time to understand your portfolio and objectives.
✅ We handle everything from single-tower deals to large portfolios.
✅ Two decades of trusted experience.
✅ We help owners even before they formally engage us.