VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Friday, January 2, 2026
SBA Communications Corporation
SBAC · NASDAQ
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
SBA Communications is a wireless infrastructure REIT that primarily earns recurring revenue by leasing space on multi-tenant communications towers in the U.S. and in international markets. The core moat is the economics of well-located tower assets: long-term leases with escalators plus high incremental margins when additional tenants colocate on existing towers. International operations diversify the portfolio but introduce FX, regulatory, and country-specific competitive risks. The Site Development segment is a smaller, project-based services business with weaker, less durable moat characteristics.
Primary segment
Domestic Site Leasing
Market structure
Oligopoly
Market share
16%-19% (implied)
HHI: 3,710
Coverage
3 segments · 5 tags
Updated 2026-01-02
Segments
Domestic Site Leasing
U.S. wireless macro tower leasing (multi-tenant co-location on communications towers)
Revenue
69.5%
Structure
Oligopoly
Pricing
moderate
Share
16%-19% (implied)
Peers
International Site Leasing
Wireless macro tower leasing in SBA's international markets (multi-tenant towers)
Revenue
24.8%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Site Development
Wireless network site development and construction services
Revenue
5.7%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Domestic Site Leasing
U.S. wireless macro tower leasing (multi-tenant co-location on communications towers)
Revenue share and segment operating profit share computed from the segment tables in SBA's 2024 Annual Report (Note 15/Segments): Domestic site leasing revenue $1,861.424M of total $2,679.634M; Domestic segment operating profit $1,592.256M of total segment operating profit $2,097.907M.
Physical Network Density
Supply
Physical Network Density
Strength
Durability
Confidence
Evidence
A dense portfolio of permitted, well-located towers enables co-location near required coverage, with scarcity in many sub-markets.
Erosion risks
- Carrier consolidation reducing tenant count per tower
- Small-cell densification and alternative architectures in dense urban cores
- New build-to-suit towers competing in growth corridors
Leading indicators
- Net new leasing activity (new leases + amendments)
- Tenant churn / lease termination levels
- Domestic tower cash flow margin trend
Counterarguments
- Large carriers can self-build towers in selected markets
- Competing tower owners can add capacity/locations over time
Long Term Contracts
Demand
Long Term Contracts
Strength
Durability
Confidence
Evidence
Multi-year site leasing contracts with renewal options and escalators support recurring cash flows, but pricing can reset at renewal and large tenants have negotiating leverage.
Erosion risks
- Major-customer bargaining power and lease repricing at renewal
- Technology shifts reducing need for incremental macro leases
- Credit stress at tenants increasing non-renewal or renegotiation risk
Leading indicators
- Weighted average remaining lease term and renewal rates
- Customer concentration and top-tenant revenue share
- Organic site leasing growth rate
Counterarguments
- Contract protection is finite; renewals can be repriced or not renewed
- Tenants can pursue alternate sites or self-build where economics justify
Scale Economies Unit Cost
Supply
Scale Economies Unit Cost
Strength
Durability
Confidence
Evidence
High fixed-cost towers make incremental tenants highly profitable; operating leverage is strongest when tenancy grows, but can reverse with tenant churn.
Erosion risks
- Lower tenancy from churn/consolidation compressing operating leverage
- Rising power/maintenance costs and tower upgrade needs
- Competitive pricing pressure on new leases/amendments
Leading indicators
- Tenancy ratio and amendment volumes
- Tower cash flow margin (domestic)
- SG&A and operating expense per site trend
Counterarguments
- Scale advantages are shared by other large tower operators
- Incremental tenant additions can require capital (augmentations) and power
International Site Leasing
Wireless macro tower leasing in SBA's international markets (multi-tenant towers)
Revenue share and segment operating profit share computed from the segment tables in SBA's 2024 Annual Report (Note 15/Segments): International site leasing revenue $665.341M of total $2,679.634M; International segment operating profit $471.512M of total segment operating profit $2,097.907M.
Physical Network Density
Supply
Physical Network Density
Strength
Durability
Confidence
Evidence
Local tower portfolios create co-location options; however, competitive dynamics and regulatory regimes vary meaningfully by country.
Erosion risks
- FX devaluation impacting USD-reported results and affordability for tenants
- Country-specific regulatory/tax changes or political instability
- Carrier self-build or tower sales creating new competitors
Leading indicators
- International site leasing growth excluding FX
- Country-level churn/collections and tenant additions
- FX rates for major operating countries
Counterarguments
- Market power is local; strength in one country does not transfer to another
- Some markets have strong competitors (including AMT and local towercos)
Long Term Contracts
Demand
Long Term Contracts
Strength
Durability
Confidence
Evidence
Multi-year leasing contracts and escalators support recurring revenue, but FX, inflation dynamics, and credit risk can introduce variability versus U.S. contracts.
Erosion risks
- Renegotiations in stressed markets or with stressed carriers
- Inflation-index mismatch vs local cost structure
- Regulatory intervention on telecom pricing impacting tenant capex
Leading indicators
- Organic international site leasing revenue growth (constant currency)
- Renewal/termination patterns by country
- Tenant credit metrics in key markets
Counterarguments
- Large tenants can negotiate aggressively, especially in lower-growth markets
- Contract escalators may not fully protect real purchasing power after FX moves
Scale Economies Unit Cost
Supply
Scale Economies Unit Cost
Strength
Durability
Confidence
Evidence
The multi-tenant tower model has operating leverage internationally as well, though smaller scale in some markets can reduce bargaining power versus larger peers.
Erosion risks
- Lower tenancy due to carrier consolidation or churn
- Higher energy and maintenance costs in some geographies
- Higher capital needed for augmentations/backhaul/power upgrades
Leading indicators
- International segment operating profit margin trend
- Tenancy additions and amendments per site
- Discretionary capex per site internationally
Counterarguments
- Peers with larger in-country portfolios can match scale benefits
- International operations can have higher variable costs and execution risk
Site Development
Wireless network site development and construction services
Revenue share and segment operating profit share computed from the segment tables in SBA's 2024 Annual Report (Note 15/Segments): Site development revenue $152.869M of total $2,679.634M; Site development segment operating profit $34.139M of total segment operating profit $2,097.907M.
Operational Excellence
Supply
Operational Excellence
Strength
Durability
Confidence
Evidence
Differentiation comes from execution quality, local permitting/zoning knowledge, and geographic reach, but services are price-sensitive and replicable.
Erosion risks
- Commoditization and aggressive bidding pressure
- Customers shifting work in-house or to preferred national contractors
- Labor availability and subcontractor cost inflation
Leading indicators
- Site development revenue trend and gross margin trend
- Project backlog and conversion rates
- Bid win rates (if disclosed)
Counterarguments
- Low switching costs for customers on project-based work
- Many contractors can provide similar services and scale up quickly
Evidence
towers are strategically positioned
Supports the importance of tower footprint/location for attracting and retaining tenants.
initial term of five years to fifteen years
Direct support for long contract durations (plus renewal periods) in the site leasing model.
costs do not generally increase
Supports that adding tenants typically has minimal incremental operating cost, enabling high incremental margins.
17,464 ... located in the United States
Provides SBAC's U.S. tower/site count used in the implied share calculation.
42,222 sites in the U.S. and Canada
Used as the AMT U.S./Canada site count input for the implied share calculation.
Showing 5 of 11 sources.
Risks & Indicators
Erosion risks
- Carrier consolidation reducing tenant count per tower
- Small-cell densification and alternative architectures in dense urban cores
- New build-to-suit towers competing in growth corridors
- Major-customer bargaining power and lease repricing at renewal
- Technology shifts reducing need for incremental macro leases
- Credit stress at tenants increasing non-renewal or renegotiation risk
Leading indicators
- Net new leasing activity (new leases + amendments)
- Tenant churn / lease termination levels
- Domestic tower cash flow margin trend
- Weighted average remaining lease term and renewal rates
- Customer concentration and top-tenant revenue share
- Organic site leasing growth rate
Curation & Accuracy
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