The T-Mobile 5G slowdown will reduce revenues for tower companies, slowing their research and leading to higher 5G costs:
T-Mobile's spending plans and purchase orders for 2019 were likely made according to this timeline. But with no set date for resolution thanks to factors such as a from 18 US state attorneys general, it's likely the telecom adopted a more conservative spending stance. The Wells Fargo report states the slowdown in investment is extending beyond contractors and to T-Mobile's business with cell tower firms including American Tower, SBA Communications, and Crown Castle.
T-Mobile's delays in 5G buildup will push back the timeline of its own 5G rollout to customers in the consumer and enterprise spaces. The slower 5G rollout will save T-Mobile capital in the near term, but it will also mean that the telecom won't be able to deliver customers the faster data speeds and lower latency in as many areas as competitors will.
A slowdown in tower buildup would also impact the supply chain, and send ripple effects across T-Mobile's competitors as a result. If T-Mobile isn't buying cell towers, that will mean less revenue coming into cell tower firms, which are key partners for every network operator.
With just AT&T to provide a consistent source of purchases and revenue, tower companies might be crunched for cash and forced to scale back on cost-saving research and new product development. That would lead to higher 5G costs throughout the US mobile ecosystem, potentially pushing total capital expenditure from the Big Four telecoms beyond the $47 billion at which Business Insider Intelligence expects it to peak in 2022.
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