Towers Remain Crown’s Best Business Despite Outsized Investment in Fiber

Crown Castle's strategy has deviated from that of its two biggest competitors, which focus almost exclusively on towers and have a multinational footprint. Crown operates exclusively in the United States and is aggressively investing in fiber to pursue small-cell communications sites. In our view, Crown Castle has adopted a high-risk strategy. While we acknowledge the potential upside, small cells require heavy initial investment and lack the competitive advantage that Crown has with its towers.