Array Digital Infrastructure, Inc. (NYSE: AD)

Array Digital Infrastructure, Inc. owns and operates wireless communications tower infrastructure in the United States, providing colocation space on its towers for wireless carriers and other tenants to install network equipment. The company generates revenue primarily through long-term lease agreements with telecommunications companies that rent space on its tower structures to support their wireless networks.

Revenue is generated by leasing tower space to tenants, with income varying based on the quantity and location of installed equipment on the towers. Array has entered into long-term Master License Agreements with its largest customers, which provide defined lease terms and escalation clauses. The company experiences low tenant churn and high renewal rates due to the high cost and difficulty of relocating tower equipment.

The company operates through the following segments: Tower Operations.

• Tower Operations includes the ownership, management, and leasing of 4,450 communications towers across 19 states, supporting the deployment of 5G and other wireless technologies through long-term agreements with wireless carriers and other tenants.

Array is the fifth largest tower owner and operator of shared wireless communications infrastructure in the United States, competing with major tower companies such as American Tower Corporation, Crown Castle Inc, and SBA Communications Corporation. Its competitive advantages include a unique carrier heritage from over 40 years of tower ownership and operation, a strategic focus on increasing colocation on its tower portfolio, and ample remaining leasable capacity due to a lower tenancy rate compared to peers.

The company's largest tenants include T-Mobile, AT&T, and Verizon, with additional revenue from other wireless carriers and non-carrier customers seeking to install equipment on its tower structures.