On November 26th, 2024, the FCC approved SpaceX and T-Mobile’s plan to provide wireless service facilitated satellites in space.
This announcement follows upon the (FCC) granting T-Mobile and SpaceX special temporary authority (STA) to operate the service after the devastating Hurricanes of Helene and Milton this past fall.
People we have discussed the matter with have similar questions:
Do satellites have the ability to replace cell towers?
In short, no.
Satellite cellular service will undoubtedly complement existing service, offering tremendous potential and demonstrable benefits to consumers worldwide. While the service currently supports texting and limited data usage, it doesn’t yet provide the same quality of service customers are accustomed to with traditional cellular networks. Speed and consistency are key.
You can drive 41 hours straight from Los Angeles, California, to New York, New York, but most people opt for the 6-hour plane ride.
Even as satellite technology evolves, understanding what happens when a cell tower lease expires remains critical for property owners.
Should a landlord with a cell tower on their property be concerned that their tenant might decommission and terminate the cell tower lease due to satellite technology?
No.
We’ve seen instances where companies have attempted to buy out cell tower leases or secure long-term easements, often citing satellite technology as a potential reason. However, it’s perplexing why organizations would invest hundreds of millions of dollars annually to acquire these assets, seemingly devaluing the importance of traditional cell towers.
In early 2026, the SpaceX $17B EchoStar deal has redefined the wireless industry by acquiring EchoStar’s AWS-4 and H-block spectrum to power Starlink’s “Direct-to-Cell” network, a shift that forces property owners to rethink why cell tower leases are so long (often 25–50 years) as carriers lock in land for decades to amortize massive equipment costs while simultaneously exploring satellite alternatives. This transition toward orbital coverage makes it critical to understand what happens when a lease expires, as the 2026 market is seeing a surge in “decommissioning” where carriers like Dish (under EchoStar) are abandoning sites and invoking force majeure to stop rent payments, potentially leaving you with an obsolete tower and a $50,000+ removal liability if your contract lacks a strong restoration clause.
Additional Reading:
Satellites Are Taking Off, But Cell Towers Are Sticking Around
5G will carry 80 percent of mobile data traffic globally in 2030
https://www.ericsson.com/en/reports-and-papers/mobility-report/dataforecasts/mobile-traffic-forecast
