The Shifting Focus of Major US Carriers: Moving Away from 5G Small Cells and Embracing Tower Co-Location

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In the world of 5G infrastructure, small cells, the compact antennas designed to provide fast and reliable service in urban and densely populated areas, have long been seen as the future. However, recent trends indicate a shift in focus as major US carriers such as Verizon, AT&T, and T-Mobile reassess their strategies. Once enthusiastic about expanding small cell networks, these companies are now prioritizing tower co-location and other cost-effective solutions.

Small cells, which are typically the size of a backpack and installed on street signs, light poles, or buildings, have been touted as crucial for 5G rollouts in areas where traditional towers cannot be easily installed. Their ability to provide strong signals in crowded or hard-to-reach places made them a key part of early 5G deployment plans. AT&T initially set ambitious goals, announcing plans to install 40,000 small cells by 2015, but those goals were not met. Interest in small cells picked up again around 2018 as AT&T and Verizon aimed to deploy 5G networks using millimeter wave (mmWave) spectrum, which requires denser infrastructure due to its short-range capabilities.

However, the push for small cells faced challenges. Initially, AT&T and Verizon sought smart city partnerships to install these antennas on municipal infrastructure, but this strategy lost momentum after the Federal Communications Commission (FCC) introduced new rules intended to streamline nationwide deployments by reducing local regulatory barriers. By 2025, the number of small cells in use across the United States has fallen short of earlier forecasts, with the total number of small cells declining to 197,850 by the end of 2024 from 202,100 the year before.

A new report from the Wireless Infrastructure Association (WIA) highlights the cooling interest in small cells, showing a trend towards tower co-location, where multiple carriers share the same cell tower infrastructure. This approach is gaining traction due to its cost-saving benefits and the increasing need for efficient infrastructure utilization. During the pandemic, the shift to remote work led to changes in mobile usage, with a significant decrease in demand for small cells in urban centers. Instead, carriers have redirected efforts towards upgrading traditional towers, particularly in suburban areas, where they continue to serve the growing mobile traffic.

Despite the slowdown, the WIA remains optimistic that small cells will play a larger role again as 5G networks grow and require further densification. For now, however, tower co-location remains the focus. As of late 2024, the number of traditional cell towers in the US rose slightly to 154,800, with many towers now supporting equipment from multiple providers. This trend is seen as a way to optimize network infrastructure while keeping costs and environmental impact under control.

Image illustrating cellular infrastructure
Image by Kabiur Rahman Riyad, Unsplash

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