Real Estate

Report by Kolytics

Kolytics’ latest Towers sector research, “Poor Signal…!”, analyses the market reaction to EchoStar’s $40bn sale of 5G spectrum to AT&T and SpaceX. While Tower REITs sold off sharply, Kolytics argues this response is misplaced. EchoStar lacked the capital to execute its Direct-to-Device strategy, but AT&T’s spectrum purchase should drive incremental tower investment to improve its lagging mid-band 5G coverage and SpaceX’s spectrum use is complementary, not competitive, to terrestrial networks. Importantly, Tower REITs’ direct exposure to EchoStar revenues is capped at just 2-5% under long-term leases. With data demand still growing at 15-20% p.a., Kolytics sees the sector’s fundamentals as intact - and the sell-off as a market overreaction.

Communications

Report by New Street Research

New Street previously commented that if Trump was elected, Elon Musk would be the most powerful force in telecom policy, elevating satellite priorities over the policy priorities of traditional communications networks. One of the issues they pointed to where that influence might be exercised involved potential SpaceX interference with T’s cellular network. The FCC recently addressed that issue, granting a conditional waiver to SpaceX re. OOBE that will improve the TMUS direct to device service, despite studies from T and VZ providing evidence that doing so will degrade T’s cellular service. In this note, New Street describes the grant and lays out the implications for investors, including how it may impact other spectrum battles.

Communications

The US Space Development Agency (SDA) is launching satellite services that will stimulate the commercial industry, according to leading Space sector analysts, Quilty Analytics. The 60-page briefing summarises the SDA’s plan, highlights sector developments and constellation updates for Amazon, OneWeb, SES, SpaceX and Telesat, and offers in-depth analysis on topics including space sustainability, Viasat/Inmarsat acquisition, and GEO satellite launches.