SBA Communications (SBAC) Bank of America 2026 Media,Communications & Entertainment Conference summary

Industry trends and technology cycles

• Wireless infrastructure follows cyclical technology upgrades, with 5G rollout peaking in 2022–2023 and CapEx now in a harvest phase below 15% of revenue, but lease-up remains steady at $35 million annually.

• 6G rollout is anticipated around 2028–2029, with spectrum auctions and OEMs preparing equipment, promising greater efficiency and lower costs per bit.

• New applications like AI, fixed wireless access, and self-driving cars are expected to drive future demand for tower infrastructure.

Growth catalysts and revenue drivers (2026–2029)

• Dish churn will impact revenue by $36 million annually, with litigation ongoing but not materially significant.

• AT&T's 600 MHz deployment and potential terrestrial networks from LEO satellite operators like Starlink and Amazon could provide incremental lease-up opportunities.

• Edge data centers and AI-driven applications are emerging as new tenants, with a few thousand sites identified as suitable for edge deployments.

International market outlook

• Central America offers stable, dollar-denominated contracts and a build-to-suit commitment for 2,500 new sites, supporting mid to high single-digit growth.

• Brazil faces elevated churn due to market consolidation but is expected to stabilize and return to growth post-2027.

• Tanzania is growing rapidly, while smaller Latin American markets are being managed for cash flow rather than growth.