SBA sees spectrum, AI, and 6G extending wireless investment cycle

SBA’s president and chief executive officer Brendan Cavanagh said U.S. customer activity in Q3 was slightly below first-half levels but remained in line with expectations, with carriers continuing to invest in their wireless networks

In sum – what to know

Spectrum drives towers – SBA expects upcoming spectrum auctions, including upper C-band, to trigger another equipment deployment cycle across its tower portfolio.

AI reshapes networks – Rising data demand and AI applications are increasing traffic and could drive more balanced uplink and downlink network architectures.

Edge expands opportunity – 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, rising mobile data demand, and the evolution toward 6G to support wireless infrastructure investment well into the next decade, while AI is creating a new opportunity around distributed edge computing.

Speaking during the company’s third-quarter earnings call, SBA’s president and chief executive officer Brendan Cavanagh said U.S. customer activity was slightly below first-half levels but remained in line with expectations, with carriers continuing to invest in their wireless networks. “The bulk of the activity continues to come from new leases as carriers address coverage gaps and add capacity,” Cavanagh said.

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 is also continuing to grow, with Cavanagh pointing to millions of new subscribers compared with just a few years ago.

Data demand and new spectrum

SBA sees steadily increasing mobile data traffic as an important driver of future network investment. Cavanagh cited the CTIA’s 2026 annual survey, according to which U.S. mobile data grew 20% in 2025, with data demand expected to quadruple by 2032.

He said much of that growth is expected to be fueled by AI and the continued expansion of connected devices such as wearables and smart sensors. To accommodate that 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 160 MHz of spectrum between 3.98 and 4.14 GHz available, which combined with existing lower C-band spectrum would create 440 MHz of contiguous mid-band spectrum for wireless use. “Whoever wins this spectrum will have 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 had proposed auctioning 25 MHz of mid-band spectrum in the 1.6 and 2.0 GHz bands, while the company expects proposed rulemaking for the 2.7 GHz and 7 GHz bands to follow.

“Given the administration’s plans to make up to 400 megahertz of spectrum available for commercial use by 2028, we expect proposed rulemaking for the 2.7 GHz and 7 GHz bands to come soon, and continue to believe the FCC could auction this spectrum as early as 2028,” he said.

AI and the 6G transition

SBA expects AI to influence 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 sending more data from devices back into the network,” Cavanagh said.

He noted that each major spectrum auction over the past two decades has been followed by a meaningful deployment cycle on SBA’s towers. “Our priority is to be ready for the next one, 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 longer-term outlook is strong. “We believe this spectrum will be the foundation of sustained organic leasing growth well into the next decade,” he said.

Satellite and edge opportunities

Beyond 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 enhanced capacity from the ground.

“We are confident that any provider looking to deliver ubiquitous, high-quality mobile service, particularly in areas of heavy traffic, will need terrestrial infrastructure to do it,” he said.

At the same time, SBA is developing an edge-computing opportunity through its SBA Edge entity. Cavanagh said AI is driving a migration toward more distributed compute architecture, particularly for inference workloads that require low latency and storage capacity and need to be closer to end users.

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 shelters or ground space at the base of the tower that can be readily put to use,” 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 remain minimal because the initial deployments use vacant space and excess power at existing tower sites. “It is still early, and the immediate revenue contribution will be modest, but the economics are very attractive, and the opportunity for much greater scale across our portfolio of U.S. towers is real,” he said.