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SBA president and chief executive officer Brendan Cavanagh said US customer activity in Q3 was slightly below the level of the first half but remained in line with expectations, with carriers continuing to invest in their wireless networks
In summary – what to know
Spectrum drives towers – SBA expects future spectrum auctions, including upper C-band, to trigger another equipment cycle across its tower portfolio.
AI is reshaping networks – Rising data demand and AI applications increase traffic and could lead to more balanced uplink and downlink network architectures.
Edge expands the possibility – SBA sees tower sites as potential locations for distributed AI inference, leveraging existing power, fiber, security and available space.
SBA Communications expects the next wave of spectrum deployments, increasing mobile data demand, and the evolution towards 6G to support wireless infrastructure investments well into the next decade, while AI creates a new opportunity around distributed edge computing.
Speaking during the company’s third-quarter earnings call, SBA president and chief executive officer Brendan Cavanagh said US customer activity was slightly below first-half levels but remained in line with expectations, with carriers continuing to invest in their wireless networks. “Most of the activity continues to come from new leases as carriers address coverage gaps and add capacity,” Cavanagh said.
The carriers are also upgrading existing leases with 5G-capable mid-band spectrum, including C-band, as well as technologies such as massive MIMO and higher capacity radios. Fixed wireless access also continues to grow, with Cavanagh pointing to millions of new subscribers compared to just a few years ago.
Data demand and new spectrum
SBA sees steady increase in mobile data traffic as an important driver of future network investments. Cavanagh cites CTIA’s 2026 annual survey, according to which US mobile data will grow 20% in 2025, with data demand expected to quadruple by 2032.
He said much of that growth is expected to come from AI and the continued expansion of connected devices such as wearables and smart sensors. To accommodate this demand, Cavanagh expects additional spectrum to come to market, including AT&T’s 600 MHz spectrum and the upper C-band.
The upper C-band auction is scheduled to begin in April 2027, with the FCC required to complete it by July, according to Cavanagh. He said the auction will make available 160 MHz of spectrum between 3.98 and 4.14 GHz, which combined with existing lower C-band spectrum will create 440 MHz of contiguous mid-band spectrum for wireless use. “Whoever wins this spectrum has to put it into commercial service, and putting it into service means new equipment on our towers,” Cavanagh said.
SBA also pointed to developments across other spectrum bands. Cavanagh said the FCC has proposed auctioning 25 MHz of mid-band spectrum in the 1.6 and 2.0 GHz bands, while the company expects to follow the rules for the 2.7 GHz and 7 GHz bands.
“Given the administration’s plans to make up to 400 megahertz of spectrum available for commercial use by 2028, we expect proposed rules for the 2.7 GHz and 7 GHz bands to come soon, and continue to believe that the FCC could auction this spectrum as early as 2028,” he said.
AI and the 6G transition
SBA expects AI to affect not only the volume of wireless traffic, but also how networks are designed. “As the industry moves toward 6G, we expect a more balanced uplink and downlink network architecture, driven in part by AI applications that send more data from devices back into the network,” Cavanagh said.
He noted that every major spectrum auction in the last two decades has been followed by a meaningful deployment cycle on SBA’s towers. “Our priority is to be ready for the next, with the right sites, the right people, and the right processes to help our customers deploy quickly,” he said.
While carrier activity can vary from quarter to quarter, Cavanagh said SBA believes the long-term outlook is strong. “We believe this spectrum will be the foundation of sustainable organic leasing growth well into the next decade,” he said.
Satellite and edge opportunities
In addition to traditional wireless customers, SBA also sees opportunities with satellite and edge providers. Cavanagh said the company continues to view satellites as complementary to terrestrial wireless networks, pointing to a satellite provider’s recent purchase of low-band 800 MHz spectrum as an example of spectrum that can support in-building coverage and increased ground capacity.
“We are confident that any provider that provides ubiquitous, high-quality mobile service, especially in areas of heavy traffic, will need terrestrial infrastructure to do it,” he said.
At the same time, SBA is developing an edge-computing capability through its SBA Edge entity. Cavanagh said AI is driving a migration toward more distributed computing architecture, especially for inference workloads that require low latency and storage capacity and need to be closer to the end user.
He said traditional data centers face challenges around power availability, permitting and construction timelines, while SBA tower sites already have several of the infrastructure components needed for distributed deployments.
“We already have power, fiber and security in place. Our sites are zoned, and in many cases they have existing shelter or floor space at the base of the tower that can be easily used,” Cavanagh said.
Through SBA Edge, the company provides access to power and infrastructure for AI customers. Several edge sites are already operating, with a handful of companies building distributed AI inference capacity.
Cavanagh said incremental capital requirements will remain minimal because the initial deployments will utilize vacant space and excess power at existing tower sites. “It’s still early, and the direct revenue contribution will be modest, but the economics are very attractive, and the opportunity for much greater scale across our portfolio of US towers is real,” he said.