Ladies and gentlemen, thank you for standing by. Welcome to the American Tower first quarter 2021 earnings conference call. As a reminder, today's conference is being recorded. Following the prepared remarks, we will open the call for questions. If you'd like to ask a question, please press one, then zero. I would now like to turn the call over to your host, Igor Khislavsky, Vice President of Investor Relations. Let's go ahead, sir.
Good morning, and thank you for joining American Tower's first quarter 2021 earnings conference call. We've posted a presentation which we will refer to throughout our prepared remarks under the Investor Relations tab of our website, www.americantower.com. On this morning's call, Tom Bartlett, our President and CEO, will provide a strategic update on our U.S. business. Rod Smith, our Executive Vice President, CFO, and Treasurer, will discuss our Q1 2021 results and revised full-year outlook. After these comments, we will open up the call for your questions. Before we begin, I'll remind that our comments will contain forward-looking statements that involve a number of risks and uncertainties.
Examples of these statements include our expectations regarding future growth, including our 2021 outlook, capital allocation, and future operating performance, our expectations regarding the impacts of COVID-19, our expectations regarding the impacts of the AGR decision in India, our expectations regarding our pending Telxius acquisition, and any other statements regarding matters that are not historical fact. You should be aware that certain factors may affect us in the future and could cause actual results to differ materially from those expressed in these forward-looking statements. Such factors include the risk factors set forth in this morning's earnings press release, those set forth in our Form 10-K for the year ended December 31st, 2020, and in other filings we make with the SEC. We urge you to consider these factors and remind you that we undertake no obligation to update the information contained in this call to reflect subsequent events or circumstances.
With that, let me turn the call over to Tom.
Thanks, Igor. Good morning, everyone. As is typical on our first quarter call, the focus of my comments today will be on our foundational U.S. business, which represented nearly 58% of our total property revenue and more than two-thirds of our consolidated property segment operating profit in Q1, while accounting for about three-quarters of our $60 billion in contractually committed revenue. The overall NOI yield of our U.S. property segment now stands at 11.5%, with sites in the portfolio for at least 10 years generating more than 20%. These metrics reflect our long track record of driving strong, profitable, recurring cash flow growth in the U.S., we remain confident in our ability to extend that track record long into the future.
This confidence is inspired not only by the exceptional visibility we have into our long-term organic growth rates through our existing comprehensive master lease agreements, but also due to a number of favorable industry trends that we expect to drive our business forward. These trends, in large part, center on our customers' 5G network deployments, which we expect to meaningfully accelerate over the next several years, giving rise to a more developed 5G world. On the demand side of the equation, mobile data usage growth shows no signs of slowing. The average smartphone user in the U.S. is currently consuming more than 15 Gb per month and is expected to be using more than 50 Gb on a monthly basis by 2026, reflecting a CAGR of nearly 30%.
The proliferation of value-added streaming services, mobile video conferencing, and other content-rich, bandwidth-intensive applications continues to stress existing 4G wireless networks, creating the need for more material additional network capital investment. Emerging AR and VR applications and other next-gen capabilities are contributing virtually nothing to mobile data usage today, given the limited coverage and low 5G device penetration. We don't think that will be the case for long. The 5G network revolution is underway, and it's quite possible, perhaps even likely, that current growth projections for U.S. mobile data usage will prove to be conservative, much like what we've seen in the past. The development of 5G-related low latency applications and services, additional growth from enterprise accounts, and even fixed wireless applications in the home could all drive usage much higher over time.
We expect that the increased availability of spectrum in the marketplace, particularly on the mid-band side, will help enable this usage growth going forward. Spectrum has always been the lifeblood of the wireless industry, and given the capacity necessary to provide users a true 5G experience, it is more important today than ever before. Particularly significant in our view are mid-band spectrum assets like 2.5 GHz and the newly acquired C-band frequencies, as they provide our customers with a crucial middle ground between the attractive propagation characteristics of low-band spectrum and the deep capacity characteristics of higher bands. We believe the results of the most recently completed C-band auction underscore the importance of this spectrum to our customers as they look to monetize the benefits of 5G. Importantly, as the carriers emphasized in their public comments after the auction, we expect this spectrum to be deployed quickly.
The wireless industry is in a strong financial position, numerous steps have been taken by the carrier to not only fund the upfront purchase price of the spectrum, but also to effectively deploy it. In fact, we are already seeing sizable increases in activity in our own services segment. Consistent with our long-term outlook expectations, we expect to see higher levels of gross new business in our property segment beginning later this year, particularly in 2022 and beyond. Part of this uptick in activity is in rural areas, as stimulus funds from the government support smaller companies to effectively deploy wireless internet services, as the major operators continue to fill in the white spaces in their network. The deployment of fixed wireless for households around the country using mid-band spectrum, as our customers are planning, could also provide further opportunities for us going forward.
Taking all of these factors into account, we believe we have a highly attractive long-term monetization opportunity in front of us as the carriers further densify their network and add more equipment to existing lease sites to support their incremental capacity needs. A significant portion of this growth is locked in through our existing contractual relationships. Other components of the growth may be more variable. Either way, we expect to see higher levels of activity in the marketplace, accompanied by increasing wireless CapEx spend. On this point, analysts are projecting more than $35 billion in average annual capital spending from our customers over the next several years, which would represent industry records. To put that in perspective, that average annual rate is more than double what the carriers spent back when 2G was actually deployed.
While each of our customers have slightly different strategies to deploy 5G, we are confident that they will be successful in doing so. We also believe that our macro tower-oriented U.S. portfolio of over 43,000 sites is optimally positioned to benefit from these accelerating deployments. Macro sites continue to be by far the most cost-effective, RF-efficient network engineering option and are also optimally located to help deliver coverage and capacity for hundreds of millions of people nationwide. As a result, we continue to believe that the vast majority of mid-band deployments in the U.S. for the foreseeable future will be on macro towers, as our network infrastructure was ideally suited for our customers' needs for 2G, 3G, and 4G, and we have no reason to believe that 5G will be any different.
What we do expect to be unique to 5G is the added use of massive MIMO technology for mid-band spectrum deployments on our macro towers, which should provide operators with more dynamic coverage and capacity capabilities. The race to nationwide 5G with the use of massive MIMO will require more fiber connections through antennas, increased DC power, and enough capacity to accommodate the size and weight of these more intelligent RF solutions. To prepare for these requirements, we have been proactively investing in more efficient and scalable power solutions at many of our sites. We've also upgraded the capacity of many of our tower structures over the last decade, installed energy-efficient LED lighting on many sites, and invested in site hardening initiatives where appropriate. Simply put, we stand ready to service our customers as they accelerate their 5G deployments.
Importantly, macro sites may even be more critical today given the incremental density networks will require to support a 5G architecture. Because only one of our existing tenants is on more than half of our sites today, we have a tremendous opportunity to drive incremental lease and capacity utilization as densification initiatives ramp up. As has been our experience, we would expect roughly $0.90 of every dollar we generate from this organic leasing activity will flow straight to the bottom line. As a result, we expect to continue to drive strong operating leverage in the business, along with modest capital intensity, reflecting two of the hallmarks of our last several decades of growth. Additionally, we expect to continue to generate strong operating profit margins, including more than 78% in 2021.
All of these factors contribute to our confidence in our ability to drive average annual U.S. and Canada organic tenant billings growth of at least 5% through 2027, normalized for the Sprint churn impact , and at least 6% from 2023 to 2027, specifically calculated on the same base. Importantly, more than 2/3 of this growth is now contractually locked in given the signing of our MLA with Dish in the first quarter. Embedded with these expectations is the assumption that our portfolio of wireless towers will be our fastest-growing asset, as has been the case over the last five years, when our organic tenant billings growth was an average of roughly 40 basis points higher than our overall U.S. metric. This resilient trend, in our view, is another point of validation.
Macro tower will continue to be the focal point of modern wireless networks, generating the best economics across the telecommunications real estate universe. Going forward, we expect these economics to get even better. Margins will benefit from densification-driven leasing activity and continued amendments, while costs will remain largely fixed and capital intensity should continue to be low. Existing leases will escalate at a historical rate of at least 3%, and normal course churn should be quite modest, likely trending down over time, particularly once we work through the Sprint cancellations over the next few years. We intend to remain laser-focused on maximizing our sustainable cash flow growth from these fundamental 5G drivers. We also believe that the economics of our U.S. business, and specifically of our macro tower sites, can be further enhanced through the implementation of selective platform expansion initiatives.
Chief among them is edge compute, which is starting to come into clearer view as true 5G becomes a reality for consumers, perhaps even more importantly, for the enterprise segment. We expect the key drivers of demand for edge compute solutions to be the emerging need for incremental Cloud RAN locations and lower latency applications processing in a 5G environment. As more and more data processing evolves to the network edge to support those needs, we anticipate that new micro edge data center architecture will be necessary to complement the existing regional framework. Select locations within our nationwide macro tower asset base, which by definition are at the mobile network edge, are positioned to play a meaningful role in this evolution.
The underlying thesis supporting this belief is the concept that, just as it has been for the last two decades in the deployment of wireless networks, shared neutral host infrastructure will be the most cost-effective and efficient way to rapidly deploy cloud-native 5G applications at scale. Given that our attractively located tower sites have existing access to fiber and power while already hosting multiple communications providers, they are natural candidates to represent hub locations for these low latency wireless edge data centers. Scale deployment of the true mobile edge remains several years away, but in our view, the TAM could be quite significant, running well into the billions of dollars annually. In the meantime, we have some half dozen ongoing small-scale distributed compute trials at our tower sites, creating a beachhead to larger scale through mobile edge deployment.
Additionally, our Colo Atl facility continues to outperform our expectations, and we are having meaningful conversations with a number of key stakeholders across the data center and cloud sectors regarding the optimal requirements for the 5G edge. As we've noted previously, we intend to explore global joint ventures or partnerships to effectively leverage these inherent opportunities, and we continue to work through a number of different scenarios on that front. The early data points we are seeing throughout the industry all suggest that this can be a meaningful, scalable opportunity that can represent solid upside for us in due time, and we are devoting resources internally to ensure that we are in a position to be opportunistic and agile. In the context of the long-term outlook we discussed last quarter, we believe that mobile edge compute could eventually represent meaningful potential upside.
Having said that, we are going to remain disciplined from a capital deployment perspective, as you would expect. Recurring revenue, strong long-term growth prospects, healthy ROIC, and an attractive margin profile are all prerequisites for us to deploy meaningful capital anywhere, and that includes our efforts on the platform expansion side. Our preliminary assessments indicate that the edge opportunity fits nicely into our framework, but we will need to prove out this thesis going forward. Taking into account the strong underlying baseline growth path we have in the U.S. for the next decade, we are in a position to be thoughtful, deliberate, and strategic with these types of initiatives. Additionally, while we are laser-focused on driving incremental value in the U.S., we expect to have attractive opportunities to deploy capital internationally, where high-quality, scaled macro tower portfolios are likely to come to market.
While my comments today are focused on our U.S. operation and marketplace, the exact same approach can be duplicated globally. Whether it's growth, platform expansion opportunities, or margin expansion, the message globally are identical. With our roughly 220,000 sites pro forma for the Telxius acquisition, we have an unmatched presence in some of the fastest-growing wireless broadband markets, period. We can offer to a number of different parties a one-stop capability that is second to none. While we would expect to expand the depth of this presence over time so as not to be complacent, we believe that it already gives us a significant competitive advantage. As we've always done on a global basis, we will be seeking to maximize long-term growth and AFFO per share while maintaining attractive returns on invested capital.
We also continue to invest in our people, our systems, and processes, and remain focused on numerous ESG initiatives while dedicating ourselves to ensuring a diverse and inclusive culture throughout the company. To summarize, I want to reiterate our excitement about the U.S. market. We are in the very early stages of a transformative period in U.S. wireless technology, one that has the potential to fundamentally alter how we live, work, and play while opening up tremendous new possibilities across numerous industries. Our extensive portfolio of communications real estate across the country sits at the cross-section of the elements that can make this transformation a reality. As a result, we are positioned to drive compelling long-term stockholder returns while continuing to provide industry-leading service level to both existing and new customers.
Finally, I want to recognize our nearly 6,000 employees around the world who are working tirelessly for all of us. Achieving the types of results Rod is going to walk you through now, particularly through this horrific pandemic, is really remarkable. I want them to know just how much we all appreciate their dedication and hard work. With that, let me hand the call over to Rod to discuss our first quarter results and updated outlook. Rod?
Thanks, Tom, and thanks everyone for joining today's call. I hope you and your families are doing well and staying healthy. As you saw in today's press release, we're off to a strong start in 2021 as 5G ramps up in the U.S. and as carriers in our international markets deploy significant capital towards their network enhancement initiatives. Before getting into the details of our Q1 results and revised outlook, I want to touch on a few highlights for the quarter. First, we announced the acquisition of Telxius, which we believe will be transformational for our European business. We also signed a master lease agreement with DISH, which locks in attractive multi-year growth in cash property revenue for us beginning in 2022.
Demand for our towers continues to be strong throughout our global footprint, and we saw this reflected in both our solid tenant billings growth and in the high volume of new builds in the quarter. We continue to leverage the capital markets to support our investment-grade balance sheet, issuing $1.4 billion in senior unsecured notes and refinancing existing debt at highly attractive rates. Finally, we made good progress regarding the financing plan for our expanding European business, including private capital. We expect to communicate specific details of our plan prior to closing the first tranche of towers, which we anticipate will be later this quarter. Please turn to slide six, and I'll review our property revenue and Organic Tenant Billings Growth for the quarter.
As you can see, our Q1 consolidated property revenue of $2.13 billion grew by 7.9%, or nearly 10% on an FX neutral basis over the prior year period. This included U.S. property revenue growth of 13% and international property revenue growth of 1.7%, or 5.8%, excluding the impacts of currency fluctuation. These growth rates were right in line with our expectations and continue to reflect the essential nature of mobile services and the importance of our tower portfolio throughout our served markets. Moving to the right side of the slide, organic growth was, once again, a significant contributor to our overall revenue growth. On a consolidated basis, Organic Tenant Billings Growth was 4.1%, including 3.6% in our U.S. and Canada segment and 5% in our international markets. In the U.S., we had a solid quarter of gross new business commencement, as expected.
Churn was right in the middle of our historical 1%-2% range. Escalators were 2.6%, impacted by certain timing mechanics within our MLA with T-Mobile. For the full year, we expect escalators to come in right around 3%, consistent with historical trends. International Organic Tenant Billings Growth was particularly strong in Latin America, coming in at 7.9%, and was also quite solid in Africa, where we generated growth of 7.4%. In both regions, we are continuing to see our tenants actively deploying equipment across their network as mobile data consumption grows rapidly. Activity in Nigeria was a highlight once again, and we continue to expect growth in that market to ramp up going forward. We also had a strong quarter in Europe, particularly in Germany, where gross new leasing growth was around 7%, driven by accelerating 5G deployment and continuing investments in 4G.
In India, we saw an Organic Tenant Billings Growth decline of 1.6%, in line with our expectations as we continue to work through the latter stages of AGR and consolidation-related churn in the market. On the gross new business side, we saw another solid quarter, which was further complemented by contributions from the more than 5,000 sites we have constructed in the market since the beginning of 2020. Notably, global commenced monthly new business in the quarter, including contributions from new builds, was more than $11 million, up about 17% versus the prior year period and representing a new ATC record level. Turning to slide seven, our first quarter adjusted EBITDA grew 13.3%, or 14.9% on an FX neutral basis, to $1,440,000,000.
Adjusted EBITDA margin was 66.7%, up nearly three full percentage points over the prior year, driven by continued organic growth and prudent cost controls throughout the business, as well as the benefits of straight-line revenue related to the T-Mobile MLA signed late last year. Cash SG&A as a percent of total property revenue was 6.6% for the quarter, as significant scale across our footprint continued to yield benefits, along with some bad debt reversals in India. Moving to the right side of the slide, consolidated AFFO and consolidated AFFO per share each grew by about 24%. These growth rates included the benefit of the non-recurrence of about $63 million in one-time cash interest expense booked in Q1 of last year, associated with our purchase of MTN's minority stake in our Ghana and Uganda businesses. Normalizing for that item, growth would have been around 16%, the highest rate in several years.
This was driven by high conversion of cash adjusted EBITDA, as well as lower than expected cash interest, non-recurring cash tax refunds, and seasonally low maintenance CapEx. I will note that the cash tax and maintenance CapEx trends we saw this quarter are largely attributable to timing, these lines are expected to tick back up over the rest of the year. As a result, we expect that Q1 will be the highest level of quarterly consolidated AFFO per share that we see in 2021. Finally, on an FX neutral basis, consolidated AFFO and consolidated AFFO per share growth for the quarter would've been right around 26%. Let's now turn to our revised full year outlook, where I'll start by reviewing a few of the key high level drivers.
Due to the negative impacts of translational FX fluctuations in some of our international markets, we are reducing our property revenue outlook by $25 million at the midpoint. On an FX neutral basis, we would be increasing our property revenue expectations due to higher pass-through and straight-line revenue internationally. Despite these FX headwinds, we are raising our outlook for both adjusted EBITDA and consolidated AFFO. The adjusted EBITDA outperformance is primarily attributable to higher expected contributions from our services segment, driven by pre-construction site acquisition, zoning, and permitting work for our customers, as well as slightly more favorable SG&A trends in the business. Regarding our improved AFFO expectations, in addition to the services outperformance, we are anticipating lower cash taxes and cash interest expense for the year.
Finally, per our historical practice, our revised outlook continues to exclude the impacts of our pending Telxius transaction and its associated financing. We expect the transaction to close in multiple tranches, beginning with the majority of the European sites later in the second quarter, and with some of the German rooftops and the Latin America sites in Q3. Once the assets begin to close, we will update further iterations of our guidance to include these contributions. We look forward to quickly integrating the portfolio, and as previously noted, expect the deal to be immediately accretive to consolidated AFFO per share. With that, let's turn into the details of our revised full year expectations. As you can see on slide eight, we are now projecting consolidated year-over-year property revenue growth of 7.5% at the midpoint.
The decline as compared to the prior guidance is due to approximately $48 million in negative translational FX impact, which is being partially offset by about $23 million in additional international pass-through and straight line revenue. Moving to slide nine, you'll see that we are reiterating our Organic Tenant Billings Growth projections across all regions, as the global leasing environment remains consistent with our prior expectations across our footprint. We continue to expect consolidated Organic Tenant Billings Growth of 3%-4% in 2021. In the U.S., as Tom outlined earlier, we anticipate a prolonged period of strong growth driven by 5G related densification initiatives by the carriers as they roll out multiple spectrum bands. We continue to expect that gross new business activity will accelerate through the year and into 2022. Looking to Latin America, Organic Tenant Billings Growth is expected to be roughly 7% for the year.
Despite some challenges around COVID trends in the region, carrier activity remains consistent as customers continue to increase their mobile data usage and carriers respond with incremental network investments. In Africa, we expect to generate Organic Tenant Billings Growth in excess of 8%, driven primarily by spending on 4G deployment. We are seeing especially strong growth in Nigeria, where new business trends continue to inflect positively and where our contract structures with key tenants are supporting growth. As we move into the back of the year, we anticipate that Africa Organic Tenant Billings Growth will accelerate to above 9%. In Europe, we continue to expect Organic Tenant Billings Growth of over 3% for the full year and are seeing solid trends, particularly on the gross new business side.
We're especially encouraged by what we are seeing in Germany, where organic tenant billings growth excluding churn hit 7% in Q1 for the first time. We expect positive new business trends to continue going forward as incumbent carriers accelerate their 5G initiatives and as a new tenant begins to roll out its network. Finally, in India, we continue to expect roughly flat organic tenant billings for the year. While we believe we're in the very late stages of the consolidation process, we maintain our expectation that we will see elevated churn this year as the post-AGR environment sorts itself out. With that said, we remain optimistic that the long-term growth trajectory in the market should be more favorable, particularly given that the structural framework of the wireless sector today is probably the most constructive it has been in the last decade.
Moving to slide 10, we are raising our adjusted EBITDA outlook and now expect year-over-year growth of 9.6%, despite about $30 million in negative translational FX impact as compared to our prior outlook. Around $33 million in incrementally expected services gross margin, $3 million or so in net straight-line favorability, and about $4 million in lower cash SG&A is enabling us to more than offset the FX headwind. The services activity we are seeing is broad-based and spread across multiple tenants, and in our view, another indication that U.S. network investment activity is in the early stages of a sustainable acceleration. Turning to slide 11. We are also raising our expectations for full year consolidated AFFO, and now expect year-over-year growth of over 9%, with an implied outlook midpoint of $9.25 per share.
Services segment outperformance, as well as about $13 million in net cash interest and cash tax favorability are driving this upside and enabling us to absorb about $25 million in unfavorable FX impact. On a per-share basis, we expect growth of 9% for the year and continue to drive towards our goal of delivering double-digit growth. Moving on to slide 12, let's review our capital deployment expectations for 2021, which are broadly consistent with our prior outlook and reflect our continuing focus on driving strong, sustainable growth in consolidated AFFO per share. Distributing capital to our common shareholders remains our top capital allocation priority, and we continue to expect to allocate approximately $2.3 billion towards our dividend in 2021, implying a year-over-year growth rate of around 15%, subject to our board's approval.
Regarding CapEx, we are raising our projections by $25 million at the midpoint due to some additional expected U.S. land investments and a modest increase in startup CapEx internationally. On the acquisition front, we spent around $115 million in the first quarter and continue to expect to deploy over $9 billion for the Telxius transaction later this year. As I mentioned earlier, we have made substantial progress on the financing plan for our European business and our acquisition of the Telxius asset. This includes on the private capital front, where we continue to remain confident that we can bring in one or more high-quality strategic counterparties to purchase minority stakes in our European business. Not only to help us finance the Telxius transaction, but also to collaborate on future European expansion opportunities.
On the debt side of the equation, we continue to expect to take our net leverage up to the high five times range. Having completed a U.S. dollar-denominated senior unsecured notes offering in Q1, we anticipate that other near-term debt issuances are likely to be euro-denominated. This is consistent with our expected material expansion of euro-based revenues in our business and will enable us to take advantage of highly attractive financing rates. Finally, any remaining funding needs that isn't covered by debt issuances or private capital will be in the form of equity through a common equity issuance and/or a mandatory convertible preferred issuance. Our goal continues to be to fund this transaction in a way that is not only optimal from a capital structure perspective, but also enables us to optimize shareholder returns. Turning to slide 13.
I'd like to spend a few minutes on our new build program, which has accelerated over the last few years to meet increasing demand for new sites by a number of our key international tenants. As you can see, since 2016, and including our expectations for this year, we will have added over 23,000 sites to our portfolio through new construction. In 2020, we built over 5,800 towers, a new American Tower record. We're off to a great start in 2021, adding nearly 2,000 sites in our international markets for the quarter. A level of activity only exceeded by that of Q4 2020. Moving to the middle of the slide, you can see that we are seeing highly attractive returns on capital deployed towards new sites. In Q1, average day one new build NOI yields were around 12%.
In our APAC region, where we added over 1,300 sites, we saw highly attractive yields of around 15%. In Africa, where we added more than 500 sites, we averaged day one returns of over 10%. We're anticipating another record year of new builds in 2021, with 6,500 sites at the midpoint of our outlook. The majority of these deployments will be focused across these same APAC and Africa regions, where we expect to drive the most attractive new build returns and where the vast majority of new build activity is for investment-grade anchor tenants. Looking beyond 2021, we expect this trend of increasing demand for incremental wireless infrastructure to continue as carriers in markets with fast-growing populations and surging demand for mobile data work to enhance their network.
We believe that our existing global scale, track record of providing best-in-class service levels, and strong relationships with MNOs place American Tower in a favorable position to act as a preferred partner for these large-scale deployments. We'll look to take advantage of the opportunity to continue growing our international portfolio by deploying capital for high-return new build projects. As Tom noted on last quarter's call, based on the demand we are seeing for new sites internationally, we are targeting the construction of 40,000 to 50,000 new sites over the next five years. On slide 14, in summary, Q1 was another quarter of solid organic growth, margin expansion, dividend growth, and strong new build activity.
We were able to secure a transformational deal in Europe with the pending Telxius transaction, signed a value additive long-term MLA in the U.S., continued to enhance our balance sheet through opportunistic refinancings, and remain focused on cost controls and driving sustainable recurring growth.
We are excited about the global demand for tower space and look forward to making additional progress on many fronts through the rest of the year as we seek to deliver compelling total returns to our shareholders. With that, I'd like to turn the call back over to the operator for Q&A.
Thank you. Ladies and gentlemen, if you'd like to ask a question, please press one then zero on your telephone keypad. You may withdraw your question at any time by repeating the one zero command. If you're using a speakerphone, please pick up the handset before pressing the numbers. Once again, if you have a question, say one then zero at this time. One moment please for your first question. Your first question comes from the line of Simon Flannery from Morgan Stanley. Please go ahead.
Thank you very much. Good morning. Tom, thanks.
Hey, Simon.
How are you? Thanks for the overview on the U.S. portfolio. Very helpful. It does seem like you're also becoming more constructive on Europe. We have the Telxius transaction, and to Rod's comments about looking for partners, it seems like that extends beyond this deal. Perhaps you just give us a little bit more color on what you see in Europe now. It seems like Germany in particular is very strong. Are you open to that becoming an even bigger part of your future beyond the Telxius deal? What exactly are you looking for in these partnerships as opposed to raising straight equity or debt, given the attractive capital markets there?
Thanks, Simon. Thanks for the question. We've been looking at the European market for the better part of 12 years. We did create a couple beachhead properties, if you will, in France and Germany, pretty small, in kind of the 4,000 to 5,000 sites a number of years ago. Have continued to look in those particular markets to see if there are opportunities. One of the challenges that we always saw in those markets were who the counterparty was, what the capital would be required to upgrade the sites themselves, and really, what were the long-term growth projections and opportunities in the marketplace. As such, we were never successful in terms of landing any particular transactions up until the transaction that we're just about ready to close with Telxius.
A lot of that is a function of the relationship, I think, that we've built with Telefónica over so many years, and they have such credibility. I think we have a lot of credibility with them. We were able to put our hands on this particular portfolio. I think in particular, for those very reasons that I mentioned before that got in the way of us being able to close things, is that the portfolio itself is very solid. It's a terrific set of assets, terrifically located, as I said, good counterparty. What we're starting to see in the marketplace, as Rod talked about, was really the evolution of 5G. We're starting to see more spectrum being deployed to support 5G, and we're really, I think, just on the front end of what that 5G deployment's going to look like.
We see it accelerating, particularly in markets like Germany. We see the opportunity for a new entrant who's going to be coming into the marketplace. We think it really rounds out our overall portfolio. I think we have a significant competitive advantage in that we have a presence in so many different, very important markets around the globe. This just increases the overall presence we have in what was kind of a hole, if you will, in our portfolio, given the size of the assets that we had before. Now, we're going to have 30,000 sites in the marketplace, terrific counterparty, and as I said, right in the beginning parts of what we think is going to be a long-term growth trajectory in the region.
We'll use that as a way to be able to continue to grow if it makes sense and if we find good assets, good opportunities in the region. I think we're positioning ourselves with some very interesting private capital. That will increase the overall platform for our ability to grow in the market. They're very passive. We're operating it. They're minority partners as you would expect. They're very interested also in growing their portfolios in our base of assets. Hopefully they'll be able to participate in future potential investments with us. I think that this is all coming together quite nicely for us in we've received the approvals to be able to move forward with the transaction in all due respect. We're excited about what the region has in front of us.
As I said, equally as important, we're excited now about what that brings to our overall global footprint and how important that could be to TSPs, hyperscalers, who knows who might be looking for kind of a one-stop shop, if you will, in looking at our over 200,000 sites in these key markets. We look to continue to grow that. Rod talked about the 40,000 to 50,000 new builds that we're looking at. We very much have our sights set on increasing our footprint globally, and I think this is a great step.
Great. Very helpful. Thank you.
You bet.
Your next question comes from the line of Ric Prentiss from Raymond James. Please go ahead.
Thanks. Morning, guys.
Hey, Ric.
Hey. I'm gonna follow along Simon's question a little bit there. Tom, if the private capital makes sense in Europe, does it make sense in other areas outside of Europe to come on board with you guys?
It very well may, Ric. We've had JV partners in the form of MNOs in the past, as you well know, with MTN, who are a great partner. It very well may. We'll look at it on a case-by-case basis, and look at the opportunities. We think we have a good playbook, if you will, that we've created as a result of the work that we've done on this particular transaction. There's definitely a lot of interest. We'll look at that as perhaps the means to create a broader platform for our ability to grow. It's very possible, and as you know, we'll look at everything on an individual basis, case-by-case basis.
Makes sense. You also point to, obviously, some excitement about a new entrant in Germany. Assume that's the Drillisch folks. What can you tell us about their aspirations or what type of network they're thinking of building?
I think that's probably a better question for them, in terms of what they're actually looking for. They recently, though, have executed a roaming agreement with Telefónica, so they have a very strong relationship, I think, with Telefónica in the market, which we'll then be able to hopefully take advantage of. I think that will unfold over the year, as they've said publicly, in terms of putting that all together. They are looking to roll out 5G, urban markets first. This is where our rooftop penetration, rooftop assets in that market, as we've talked about, is just so incredibly valuable. That's a particular asset base that we just didn't have before. We were quite rural in terms of the portfolio we had before. This really takes it up a few notches in terms of our ability to be successful in the marketplace.
My sense is, they will take advantage of the rooftop assets, probably out of the gate.
Okay. Thinking of MLAs, we're getting a lot of questions with Verizon having signed MLAs with Crown and SBAC. You guys have the Verizon portfolio of towers from a transaction a few years ago. Talk to us a little bit about what the give and the take is on an MLA with Verizon with you guys.
Well, as you know, Ric, we already have a long-term master lease agreement in place with Verizon. It wasn't one where it needed to be extended or from that perspective. We have a terrific relationship with Verizon. We're in conversations with them. I'm in conversations with them on quite a regular basis, not just on this, but on a lot of broader issues in the marketplace. We have a holistic rate that we have right now with them that expires at the end of the year, and that's just one element of this broader long-term master lease agreement with them. Whether that continues or not, who knows? We're, I think, providing excellent service for Verizon. They're being very aggressive on rollout of 5G and C-band. We'll be there every step of the way for them.
Okay. Last one from me, it looks like you've removed the word aspirational from just having your target on AFFO per share be double digit. Does that mean, obviously, it's a goal, but it's not, I think aspirational kind of scared some people last time around.
Well, it is a goal. I don't know if it's aspirational for whatever you want, but my compensation is driven on AFFO per share growth and return on invested capital. Our shareholders require that, too. We very much have an objective of that double digit. Now, it's not going to happen maybe in every year. It's long-term. We've been able to be very successful in terms of driving that kind of performance over the last 10 years. We're very focused on continually driving to that kind of performance going forward. 2022, we do have the churn impact associated with the Sprint asset. Could that be a challenge? Yeah, perhaps, but our goal is still the same. I think we have a number of levers.
We're going to be bringing on the Telxius assets, which I think we'll be very happy with those results and what that kind of accretion should be, take advantage of the markets. We'll have our normal solid growth that we see going on in the business. We just increased our overall EBITDA performance for 2021. We'll remain laser focused on all of our costs, including all of our capital being spent. Again, our goal is to drive that kind of performance.
Makes sense. Thanks, Tom. Everybody stay well.
You too, Ric.
Your next question comes from the line of Jon Atkin from RBC. Please go ahead.
Thanks. I wanted to ask about Telxius, and you talked about strategic counterparties. At a high level, can you talk a little bit about types of things that are factoring in here with respect to governance valuation or just other factors that will play a role and how this shakes out? It's been a couple of conference calls since you mentioned fiber, and I just wondered if there's kind of an update there, or is that less of a focus these days in some of your Latin American properties? Thanks.
Maybe I'll ask Rod to address the first question, and I'll take the second one, Jon.
Sure, Tom. That sounds great. Thanks, Jon Atkin, for the question. Hope you're doing well. From a high level, in terms of our Telxius financing, our plan has not changed, and we continue to make very good progress on the path that we originally announced when we announced that we were entering into the transaction itself. There's a few broad principles that we're looking for. One is we expect to finance this deal in a way that's consistent with our investment-grade credit. That still is the focus. Our aim is to minimize the dilution of our current common stockholders. Continue to be focused on that as well. We expect to finance this transaction in a way that supports us being immediately accretive, which is what we said early on, and that's continuing to be our focus and our expectation here as we move forward.
A couple of things in terms of the internal workings of the financing plan. I don't want to get into details around the governance and valuation and those sorts of things. The one thing I would say, valuation-wise, is very consistent with kind of the valuation of what we're doing with Telxius. In terms of the minority stakes that we are selling, we're selling minority stakes potentially in our European business, not just to Telxius. We will be putting our legacy businesses, combining that with the Telxius assets. The one key point is we do expect our debt to come up to the high five times. We've said that before.
We're still very comfortable in that range, and we do believe that that's consistent with our investment-grade credit rating and have had many discussions with the credit agencies, and we do not expect any risk of downgrades or outlook changes or anything from that perspective. Additional near-term senior notes that we may issue in order to fund this Telxius transaction are likely to be denominated in EUR, and that will allow us to take it into the very attractive rates that we see in the euro market, certainly. On the private capital front, as Tom alluded to and I mentioned in my comments, we continue to progress along that path, and we're very confident that we can bring in one or more very strategic investors.
We certainly are talking to the world's premier investors and certainly folks that understand this space, that understand the European market and other markets, quite frankly, as well as have relationships with some of our biggest customers around the globe. There may be more than just financial benefits here to our shareholders, but also strategic and kind of broader partnership benefits as well. Certainly that's a key focus. Then the final piece of the financing plan will come in the form of equity. Whatever is not funded through the increased net leverage that I talked about and through the euro debt offerings and private capital, we expect to go into the market and issue some equity.
In terms of timing, we do expect the transaction to begin to close in the second quarter here, probably as early as late May for some of the European markets. The Latin America markets we're originally expecting that they would close probably sometime in Q3. There is a chance that Brazil and some of the other markets could close as early as the end of May or at some point in Q2. We'll continue to kind of work through the timing there. There will be some assets, particularly some select rooftops that will close in Europe in Q3, not in Q2. We will have multiple closings across Q2 and across Q3. That's kind of the way that it shakes out.
Again, we remain very confident that this financing plan and our patience in kind of putting it together and managing through the details is really going to pay off for our shareholders. We're in very good shape to begin to execute on this in the month of May as we prepare to close the first tranche of the Telxius transaction.
Jon, with regard to your second question on where we are with fiber as one of our platform extension initiatives. Where we are. We have a six-country fiber footprint, Mexico, Brazil, Argentina, Colombia, SA, and India, and we cover over 30,000 route kilometers. We passed 1.25 million homes in those markets. The networks themselves are a mix of active long-haul metro, some B2B in Mexico and Brazil, and a concentration of fiber passive optical networks in SA, Colombia, Brazil, and Argentina. We've spent just over $1 billion of CapEx over the past four years in those six markets, $700 million for acquisitions and $300 million for development and redevelopment CapEx. We've been monitoring it very closely from a revenue perspective. We generated about $100 million in 2020.
Our ROIC for those particular investments collectively is in kind of the 5%, 5.5% kind of range. Interestingly, the SA asset, return on invested capital is probably double that. What we're thinking about from strategically, again, we're looking at this from an initiative perspective, a platform initiative perspective. Some of the underlying elements of it, foundations of it, again, go back to how we're looking at the overall tower model. Multi-service, multi-tenant, a long-term anchor contract, escalators, exclusive real estate rights. A way for us to really be able to create a competitive advantage, and really complement the kind of the tower returns that we've been experiencing for the last 10 years or so. Our strategy really has somewhat of kind of two prongs, I would say. The first is to pivot and transform our current fiber businesses in Mexico and Brazil through wholesale long-term contracts.
We'll be looking to do this through long-term contracts with Tier 1 carriers. Could involve some strategic inorganic transactions. Like we were just talking about before, the focus is really creating a competitive long-term strategic asset in those markets. The second strategy really entails reaching certain economics in these deployments, particularly in SA and Brazil, a focus on future investments in some of our emerging neutral host open access networks. We'll continue to be opportunistic where it obviously makes sense, be monitoring it very closely. We do see that we'll see a kind of a shift to open passive optical multi-tenant access networks over time. We think that's a great way to be able to improve the return on invested capital. Our regional focus is currently right now on Latin America, where most of the assets are, leveraging our existing MNO relationships.
We think we can create that model in LatAm and then be able to scale it globally. That's kind of where we are. It's still a work in progress, but I think we've learned a lot, and I think we're making great progress on the strategy.
Thank you.
Your next question comes from the line of Matthew Niknam from Deutsche Bank. Please go ahead.
Hey, guys. Thank you for taking the questions. Just two, if I could. One on the services side, if you can give us any updates in terms of how we should think about the cadence of revenues and services margin the next couple of quarters. Also just to get a better sense of the breadth of the strength. I think in the prior remarks, you mentioned pretty diverse in terms of contributions. If you can give us any color there. Secondly, on the SG&A front in India, looks like you're moving past some of the elevated bad debt that hit you a year ago. Just trying to get a better sense of how we should think about that in terms of whether there's any incremental bad debt you anticipate in that region or whether you've moved past that. Thanks.
Great, Matt.
Hey, Matt.
I'll let Rod get into that.
Thanks, Tom. Thanks, Matt. Hope you're doing well. Thanks for the question. With regards to our services business, as you saw in the comments earlier, and I think Tom alluded to it, we are seeing a significant uplift in our services revenue for the year. You saw us raise our full-year outlook to about $175 million, up from about $120 million. The margins are broadly consistent year-over-year, we're expecting that mid to just a touch above mid 50% margins. That's similar to what we saw in 2020. That's what we're expecting in 2021. In terms of the timing of the services revenue, we are seeing an acceleration of, let's say, applications and kind of activity in the market, and we expect that to continue throughout the next couple of quarters. More than 60% of the revenue of the $175 million is back-end weighted.
We would expect in Q3 and Q4, both of those periods would be north of $50 million per quarter in terms of revenue. That's kind of the way to think about services. Services, what we're seeing really is kind of a broad-based increase in services that goes across most all of our large customers, certainly, and it's focused on A&E engineering, MIMO analysis, things like that. Those sorts of activities are generally kind of front-end loaded. That services work happens well before you see leasing activity and any kind of an uplift in leasing revenue. It's a really good sign here in terms of the activity level for services that we see kind of ramping up towards the end of this year and as we transition into 2022.
When you think about India and bad debt, there's still a few places where we're watching customers around the globe, a couple in Africa and a couple in India, certainly. We're doing really well. There's no significant incremental bad debt in our outlook. In our accounts receivable, the way it sits at the end of Q1 is broadly in line with the way that it sat at the end of Q1 last year. We haven't had a significant increase in accounts receivable, so we continue to collect and be pleased with the way that our customers are paying in India and in the select places in Africa that we're watching. We did end up unwinding a bad debt reserve in India in Q1 by just under $10 million or so. That's certainly a good sign. With that said, we continue to kind of watch India.
There's a few things that we're looking for relative to some of our customers there in terms of capital raise projects that they're in, and certainly the amount of liabilities through the AGR and some of the activity between our customers and the government to try to negotiate those fees. We watch that quite closely. That's really the story on accounts receivable and bad debt. We've had a good quarter. We did well throughout 2020, and we don't have any significant incremental bad debt in our outlook for 2021.
That's great. Thank you for the color.
You're welcome.
Your next question comes from the line of David Barden from Bank of America. Please go ahead.
Hey, guys. Thanks for taking the questions. I guess, Rod or Tom, obviously the thing that's going to propel the gross revenue trajectory domestically is the C-band auction, and the pursuit of exploiting that opportunity among the carriers. Can you, for the benefit of us generally, across this global portfolio that you have, can you kind of maybe tick off the next one, two, or three markets where you're expecting this kind of opportunity to emerge with spectrum auctions forthcoming? The second question is John Stankey at AT&T kind of said he was, quote-unquote, "skittish" about the supply chain, marketplace, even in the U.S. Could you talk about how you're thinking about, the supply chain chip availability specifically affecting your company's or customers' ability to deploy and how you've kind of factored that into your thinking about the guide? Thank you.
Yeah, no, sure, David. Maybe I'll start off and Rod can chime in with some additional commentary. What we're seeing around the globe is, as I think both Rod and I mentioned, even in our remarks, was just an onslaught of new spectrum coming into the marketplace. We're seeing in India, we're seeing clearly in Europe, we're seeing in Latin America, and they're wide swaths of spectrum. For 5G to be effective, you need a wider swath of spectrum. You can't be at the 10 Mbps. You're looking at 20 Mbps to 40 Mbps to 60 Mbps of spectrum. That's the first sign, I think, David, that we see because as I mentioned, and as you well know, spectrum is the lifeblood of being able to roll out any of these new technologies.
For 5G to be able to truly realize the full 5G experience in terms of speeds and latency, you need significant amounts of it. I look at, and in my comment before on Europe, what we've seen in certain of those critical markets, critical countries in Europe, really stepping up to launching a lot of new spectrum. I think that's one of the reasons that we're really now starting to see some outsized growth in those particular markets, something that we hadn't seen for several years. That really drove us to looking at some of the growth curves in that market for us to even lean into some of the assets that are there. That's just the first sign of it, I think. You look at markets like Africa, though.
Africa, I think Rod had mentioned they're kind of in the 8%, looking at it growing to the 9%, even kind of ending out the year. You look at markets like Nigeria and things like that, where we're talking double-digit growth rates. That's just because the wireline presence there just doesn't exist, and wireless broadband is everything that our customers are investing in. You have slightly different reasons for some of the growth. Many of the markets are just getting into 4G, so we're still on the front of that 4G curve. Latin America, you look at Brazil growth, you look at the Mexico growth, they're in the kind of the seven, 8% kind of growth range. We're really excited about what we're seeing outside of the United States. What's really driving it clearly is more spectrum, more wireless penetration.
Unfortunately, the pandemic has actually driven even more of a need for connectivity. We're seeing even more wireless usage in those markets in particular, again, because the wireline markets are just so poor and nonexistent. We would expect to see Europe kicking in with 5G, Africa continue growth, as 4G becomes more of a reality there. Latin America, similarly, 4G into 5G ultimately. Even in India, the growth there is strong. We got return issues that we have to deal with in that particular market, and we're getting our arms around and making sure that we really nail those there. It's not a growth issue. They've got new spectrum, they've got 4G. You see the likes of Facebook. You see all of the big foreign investment that's coming into the marketplace. It's really an exciting market from a broadband wireless perspective.
That kind of gives it on a global scale. From a supply chain perspective, we don't see any impact on our side from a supply chain perspective at this point. Our customers are the ones that are kind of front line with issues that they may have from some of the OEMs and things like that. At least from our perspective, we're not seeing any impact from that perspective.
Okay, great. Thanks, Tom. Appreciate it.
Yes, sir, David.
Your next question comes from the line of Tim Long from Barclays. Please go ahead.
Thank you. Was hoping you could talk a little bit more, you talked about edge compute a little bit in your prepared remarks. Could you just update us on how you're thinking about the business model for AMT? Obviously this is a longer-term trend. Any more views on data center investments and how you think you might monetize that? I had a follow-up.
Okay. Let me take a step back a little bit. In terms of what we're seeing from an evolution perspective, if you will. First of all, this whole market is, in fact, developing. With regard to specific to the edge, we are at the beginning, and we're seeing certain elements align, if you will. We're really starting to and trying to participate in those, but we really are at the beginning starts of it.
If you start to think about, first of all, the CRAN impact, what the cloud impact is, we just saw some recent announcements in the market relative to some cloud players aligning with some of the MNOs, and we've seen Verizon doing that over the last year or so. What we're starting to see is, if you think about the 4G low mid-band power market and what it looks like at the site level, as we move into the 5G and the low band, mid-band, what we're starting to see at the site, for example, is a lot of MIMO is going to be starting to be deployed, a lot of antenna arrays, a lot of new fiber that's going up the poles themselves, five to 10 times more fiber strands needed, higher power, more heat.
There's a lot of elements that are going on actually at the site itself, which is going to drive more and more equipment improvements to the public radio interface on the front haul, which connect, actually, the power to the baseband unit itself. Now what we're starting to see is we're seeing Cloud RAN and O-RAN. From an O-RAN perspective, it's just different types of equipment that our customers are able to put together to be able to load onto the site. At the base level, at the baseband unit, which is where the data center element comes in, we're starting to see disaggregation at the baseband unit level, into the DU and into the CU level.
That's giving our customers the ability, and us, to be able to look at where, in fact, we might be able to expand and be able to enjoy some of this additional compute capability that's going to exist out at the edge as the 5G experience becomes more prevalent throughout the country. We continue and expect to see this incremental convergence of this wireline and wireless and network. We think it stresses the importance of that first-mile network architecture. As a result, we're actually very excited about the opportunity. It's a shared neutral host solution. We think it's going to be very efficient out at the site level. We actually are exploring it and going down the path of really two elements right now, two ways, if you will. We've talked about the distributed compute. The enterprise workloads continue to move onto the public cloud.
There's a growing near-term market segment that's in use of that kind of off-prem cloud computing. It's really a hybrid solution. We're located on some pen, if you will, of our sites. You'll see them. There are shelters there. There's power. There's capability to be able to offer this kind of a capability to these mid-size enterprise accounts. They're actually being quite successful. They're loading up very quickly. Believe me, they're not meaningful from an AMT perspective, but they are absolutely meaningful from an experience perspective in learning exactly what our customers are going to be looking for. The bigger opportunity for us is still at the mobile edge compute side. That will become, we believe, more of a reality as that 5G world becomes more developed.
We have a number of MOUs with a number of different players focused on solutions to the MNOs, as well as focused on solutions to the cloud service providers. We're exploring those, putting those in front of those particular accounts, and looking at what the ultimate opportunity would be. The site is a perfect location for bringing able to and be able to expand our customers' edge compute capability, not just within the United States, but on a global base. If we can bring in 500 kW of power into a particular site with a number of shelters that exist in the site to be able to load up racks and servers, and give that cloud RAN, which will actually exist in that DU. That's why that disaggregation is so important between those two particular elements of the RAN.
We think that we can enjoy some significant opportunity upside here from this whole initiative. It is an extension of our existing platform, again, neutral host, but it really provide ultimately that Cloud RAN, which we think is going to be needed to be able to enjoy that kind of latency that our enterprise accounts and customers are going to be looking for.
Okay. Thank you. I just wanted to follow up when you think about Africa and particularly India, obviously some aggressive tower build plans over the next few years. Can you just talk a little bit about this year and potential COVID-related risks to those builds and any other risks to the business because of the pandemic? Thank you.
Yeah. I think that the build itself, our plan, our outlook, I think, is in the 6,000 to 7,000 sites. There could be some timing issues associated with the build. The need is there. I'm certain that the sites are going to be built. Particularly in a market like India, who are suffering so significantly right now, there can be a timing issue in terms of having essential people out in the marketplace to be able to build. Clearly, lives saved is more important than towers built. There could be some timing there, issues. Ultimately, over that five-year period, we are seeing the demand for the 40,000 to 50,000 sites that Rod laid out. Our forecast right now is for that 6,000 to 7,000 sites. There could be some timing issues associated with, particularly the sites in India.
I'm not seeing the same implications in Africa at this point in time. By the way, our overall 6,000 to 7,000 sites, that outlook already includes some carving back of what we are expecting overall in the marketplace. Relative to COVID, overall, as we've seen over the last year, our business is quite resilient. People need connectivity. I think that's been more obvious than ever over this past year, particularly in many of our global markets. Our customers are doing everything possible that they can to be able to maintain that kind of connectivity. We're doing everything we possibly can to be able to support them, to be able to ensure that kind of connectivity. We're working our tails off with our customers to make sure that we can do that.
Okay, thank you.
Your next question comes from the line of Batya Levi from UBS. Please go ahead.
Great. Thank you. Couple questions. First, on U.S., as you think about your long-term guidance, can you tell us what it assumes in terms of the mix of amendments versus new colocation and the new site builds program that you have, what percent of that would be in the U.S.? As the carriers deploy TDMA, do you have any indication that they're leaning more towards new leases as well? Then maybe just follow up on the escalator, Rod, if you can tell us a little bit more why it stepped down and then when it will go back to 3%, and also if the DISH MLA, if you can confirm that's a 3% escalator as well. Thank you.
I thought you said there were just a couple questions?
I know. I thought we should take this call longer.
No, great. Anyway, no, thanks for being here, and thanks for the question. I'll let Rod kind of run with it.
Yeah, thanks for the question, Batya. I'll try to remember all of the different aspects here, but if I'm missing any, just remind me. Maybe I'll start at the end and work backwards a little bit. The escalator in the U.S., you saw our escalator for Q1 was about 2.6%. That really was driven by the impact of timing mechanics within the T-Mobile MLA. As we signed a new MLA with T-Mobile, the escalator shifted from one period to another, and that affected the volume of escalator in Q1. For the full year, we do expect the escalator to be right in that 3% range, 3% or just above, potentially. In Q2, we do expect the escalator for the U.S. to be 3.1%. There's no structural change, there's no permanent shift. It really is just a timing issue.
I'll also point out, it's a little ahead of time, but in 2022, you may see some lumpiness as well with the escalator given the time shift here. Again, for 2022, for the full year, we anticipate the escalator to be right in that 3% range, 3% or just above as usual. Nothing to be concerned there. We haven't had any philosophy shift and no kind of contractual change in terms of what the escalator is. It remains at 3% and as it always has in the U.S. I think your next question was relative to the long-term guidance, so maybe I'll just take a minute to remind the folks on the call of what that is. We're looking at, over the next seven years, we put out guidance at least 4% Organic Tenant Billings Growth on average over that time period.
That includes the Sprint churn, which will begin to roll off of our billing later this year in Q4, beginning in the beginning of October. If you normalize for that, we're looking at that long-term organic growth rate in the U.S. at about 5%. The other thing that I would point out here is if you look at just the first couple years, 2021 and 2022, on a Sprint impacted basis, where we'll see that churn again beginning in Q4 of 2021, the expected organic tenant billings, including that, will be around 2%. Normalizing that, it would be around 5%.
Once we get clear from that, when we get out to 2023 and beyond, 2023 out to 2027, even with the impact of the Sprint churn, we're predicting Organic Tenant Billings Growth north of 5%, and on a normalized basis for that same time period, north of about 6%. We are very excited and confident about the future in the U.S. We are seeing an acceleration of gross new biz. We're seeing that today. We expect that to continue, and that really is fueling these very solid Organic Tenant Billings Growth predictions over a long period of time, again, that seven years. Just a couple of key components here. I will remind you, 23% or 2/3 of this revenue that we need to hit these things are already contracted in our long-term agreements and in some of these holistic deals. That's key.
That includes DISH kind of being in here in the assumption with some modest activity, which potentially could be outperformed depending on the pace and the level of their network build over that time period. Some of the C-band spectrum deployments for some carriers in some of the years may be in addition here and outside of kind of the traditional holistic. We're looking for that potentially as an upside. In terms of the colocation amendment mix, we're currently still at heavy amendment, 80% and 20% colocation. That's the way it's been for a little while. It may vary from carrier to carrier, but that's what it's been consistently, and we expect that that'll be the case for a couple years. Going out longer term, it will vary.
We do expect that there could be a higher percentage of colocation than we've traditionally seen as the carriers deploy this higher band spectrum and they have a need to densify their network builds over time. We're certainly planning for some of that as well, but it's probably too early to predict at too much specificity in terms of what that will be in terms of the mix in the out years. Was there another piece in your question, Batya, that I didn't address?
Just the Dish MLA, does it have a 3% escalator?
Yeah. The DISH MLA has the 3% in there, so the escalator is consistent with everything else that we do and consistent with our philosophy here in the U.S. In terms of timing of the revenues, I'll just maybe highlight for folks that we do expect revenue to begin in 2022, and it'll be modest in that year, and then it'll ramp up going forward, and we'll be working with DISH to help them roll out their network over an extended period of time.
Awesome. Thanks so much.
You're welcome.
Okay, great. Thank you everybody for joining this morning. That'll wrap it up. I hope everyone is doing well, and we'll talk to you soon.
Thanks, everyone.
Ladies and gentlemen, that does conclude your conference for today. Thank you for your participation and for using AT&T TeleConference. You may now disconnect.