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Steve Vondran, chief executive officer of American Tower, said on a conference call with investors that the company is seeing increasing evidence that these catalysts can create overlapping investment cycles
In summary – what to know
capacity expanded – American Tower sees the next phase of 5G increasingly focused on capacity, performance and densification as wireless traffic continues to grow.
Spectrum cycle begins – The company expects that approximately 800 MHz of additional mobile spectrum will be deployed in the coming years, starting with the upper C-band in 2027.
AI adds demand – AI traffic, alongside 6G and new spectrum, could boost wireless investment by increasing capacity, density, latency and uplink requirements.
American Tower sees several overlapping catalysts that will support demand for wireless infrastructure well into the next decade, with the company pointing to four developments: the next phase of 5G, a new spectrum deployment cycle, the transition to 6G, and growing AI traffic.
Steve Vondran, chief executive officer of American Tower, said on a conference call with investors that the company is seeing increasing evidence that these catalysts can create overlapping investment cycles.
The first is the evolution of 5G from an initial focus on coverage towards capacity and performance. “Early 5G deployment is focused on coverage; the next phase is increasingly about capacity, performance and densification as traffic grows,” said Vondran.
He said carriers need to add equipment to existing sites and increase cell site density in areas where demand is greatest, with that activity starting to pick up.
American Tower cited CTIA data showing that Americans will consume a record 159 trillion megabytes of wireless data in 2025, up more than 20% year over year. CTIA projects total wireless demand to grow fourfold by 2032.
New spectrum cycle
A second catalyst is the deployment of additional spectrum. American Tower expects approximately 800 MHz of additional mobile spectrum to become available in the coming years, starting with the upper C-band in 2027 and potentially followed by 2.7 GHz, 4 GHz and 7 GHz bands.
Vondran said new spectrum deployments have historically led to increased change activity and equipment upgrades, and American Tower expects the next cycle to follow a similar pattern. The company presented the spectrum opportunity as an anticipated future deployment cycle rather than a completed development.
6G and AI add to the demand
The third catalyst is the eventual transition to 6G. While commercial 6G deployment remains ahead, Vondran said the industry is increasingly aligned around network architectures that are more intelligent and distributed and rely more heavily on edge computing.
In American Tower’s view, this may lead to increased equipment requirements, greater network density and an expanding role for communications infrastructure.
The fourth catalyst is AI. American Tower said AI could significantly reshape demand for wireless networks. It cites a CTIA expectation that AI traffic will grow three times faster than traditional wireless traffic and may account for nearly a third of broadband traffic by 2034.
AI-powered devices, agents, connected vehicles, robotics, and real-time applications could create traffic that is more persistent, interactive, and increasingly uplink-intensive, according to the company. Supporting these requirements requires additional spectrum and network capacity, as well as lower latency and greater density.
Vondran said AI will therefore extend and deepen the wireless investment cycle beyond traditional traffic forecasts.
American Tower sees the four developments as interconnected rather than isolated trends. “5G capacity, spectrum, 6G, and AI traffic reinforce each other, pointing to greater capacity, density and sophisticated digital infrastructure,” said Vondran. The company said it believes this combination positions it to participate in the resulting wireless infrastructure demand.