Array Digital Infrastructure — Key Risks
Array Is Now Almost Entirely Dependent on T-Mobile After Selling Its Wireless Business
Array closed the sale of its core wireless business to T-Mobile on August 1, 2025, leaving behind a much smaller company consisting mainly of cell towers. The remaining business is now deeply reliant on T-Mobile, which signed a Master Lease Agreement (MLA) committing to at least 15-year leases on Array's towers. If T-Mobile fails to meet those obligations, Array's financial results would be severely damaged — and there is no comparable business left to fall back on.
Pending Spectrum Sales Could Fall Through, Leaving Array Holding Costly, Unusable Assets
Array is in the process of selling wireless spectrum licenses (government-granted rights to broadcast over specific radio frequencies) to both Verizon and T-Mobile, but those deals still require regulatory approval. If either sale collapses, Array would retain spectrum it no longer has a wireless business to operate. Most of the unsold licenses have FCC build-out requirements that haven't been met, meaning Array could face forfeiture of those licenses if it doesn't spend heavily to operate them or find a carrier to do so — a significant cost with no clear return.
DISH Wireless Is Already Refusing to Pay, and Tenant Concentration Makes This Dangerous
Array's revenue comes from a very small number of tenants — primarily T-Mobile, AT&T, and Verizon. In September 2025, DISH Wireless sent a letter claiming it no longer owes payments under its lease agreement with Array. Losing even one significant tenant hurts disproportionately when the customer base is this narrow, and any financial difficulty or consolidation among the major carriers could meaningfully reduce Array's revenue.
Unsold Towers May Have No Tenants and Cost Money to Shut Down
It is currently unknown which towers T-Mobile will permanently occupy under the new lease arrangement. Towers left with no tenants may need to be decommissioned (taken down), which carries significant costs — including remaining obligations on the underlying ground leases (the land rental agreements beneath each tower). These decommission costs could meaningfully drain Array's future cash flows.
Ground Lease Renewals Could Get Expensive, Squeezing Tower Margins
A large portion of Array's towers sit on land it leases from private landowners. Those landowners may choose not to renew, or may sell their interests to ground lease aggregators (investors who buy up land beneath towers to extract higher rents). If Array is forced to accept less favorable ground lease terms, and those costs rise faster than the fixed escalation rates on its tenant contracts, margins will erode — a structural mismatch built into the business.
TDS Controls Array and Its Interests May Not Align With Minority Shareholders
TDS, Array's parent company, owns more than 80% of combined shares and controls 96% of voting power, including 100% of the Series A Common Shares. Six of Array's nine board directors are also TDS directors or officers. This means TDS can effectively direct all major decisions. When TDS's interests differ from those of Array's minority shareholders, TDS has the power to resolve that conflict in its own favor — and some of the agreements between the two companies were not negotiated at arm's length.