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Verizon, T-Mobile, and AT&T Shift Focus Away from 5G Small Cells to New Strategies

Posted on 25 May 2025

The landscape of wireless communications is evolving, and so are the needs of its users. The emphasis on small cells, once considered a crucial element for enhanced connectivity, is fading. While small cells were designed to provide efficient 5G service in areas beyond the reach of traditional towers, their significance is now being reassessed.

Small cells are low-powered antennas, comparable in size to a backpack, typically mounted on infrastructure such as light poles and buildings. They are essential for 5G technology because it relies on high-frequency signals that struggle to travel long distances or penetrate walls. By addressing coverage gaps, small cells improve the overall quality of the 5G experience.

In the past, AT&T’s ambitious plan to deploy 40,000 small cells by 2015 did not materialize. Renewed interest emerged around 2018 with the advent of 5G networks, prompting carriers like AT&T and Verizon to partner with municipalities for small cell installations. However, this strategy lost traction after new FCC regulations aimed at facilitating deployments were implemented.

A past forecast from S&P Global predicted that the U.S. would have 800,000 small cells by 2026. Contrary to that expectation, the number of small cells is projected to decline, as detailed in a new report from the Wireless Infrastructure Association (WIA). The shift from small cell deployment has led to an increased focus on the co-location of cell towers, wherein multiple providers share infrastructure, reflecting a trend towards more efficient network usage.

Unsurprisingly, the pandemic caused a significant shift in mobile usage patterns, causing carriers to prioritize traditional tower upgrades in suburban areas over urban small cell expansions. Consequently, by the end of 2024, outdoor small cell numbers had dropped to 197,850, a decrease from the previous year. Despite current trends, the WIA retains optimism that small cells will regain their importance in the expanding 5G network.

For now, however, colocations are in the limelight, allowing carriers to cut costs and lessen environmental impacts. As of late 2024, the number of traditional cell towers has increased to 154,800, with many now accommodating equipment from various providers.

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