Data Center Dynamics cites a recent report by the Brattle Group, commissioned by NATE: The Communications Infrastructure Contractors Association, warns of serious structural problems in the U.S. wireless infrastructure services sector—particularly in tower construction and maintenance.

Key Issue: Market Imbalance (Monopsony Power)

The report finds that the industry is heavily dominated by the three major mobile carriers—Verizon, AT&T, and T-Mobile—which control over 97% of the market. This creates a “monopsony”, where a few powerful buyers dictate terms to a fragmented base of smaller contractors.

Financial Pressure on Contractors

• Around 80% of contractors say pricing doesn’t cover costs
• Rigid, non-negotiable pricing models ignore regional factors like labor, terrain, and weather
• Contractors face uncompensated expenses (training, compliance, warehousing)
• Delayed payments further strain cash flow

This has created an unsustainable business environment, forcing many firms to operate at a loss.

Workforce Decline and Industry Contraction

The economic pressure is already shrinking the workforce:

• 54% of contractors have reduced staff
• Some companies are exiting the industry entirely

This threatens the availability of skilled labor needed to build and maintain network infrastructure.

Broader Risks

The report warns that these structural issues could have long-term national consequences, including:

• Slower deployment of 5G and future 6G networks
• Risks to public safety and national security
• Reduced innovation and infrastructure resilien

You might also read – https://www.fierce-network.com/wireless/big-3-under-fire-not-paying-tower-contractors-enough