Communications Infrastructure: Towers built to weather the storm

Research evidence excerpt

Communications Infrastructure: Towers built to weather the storm

$2.4bn escrow order and potential resolution in courts are positive catalysts.

Domestic deployments remain at trough levels given 5G coverage has been +/- reached. Densification efforts will likely

Domestic AMT, CCI,

Positive be longer dated, but we could see incremental deployments from various carriers around the edges of the network. 2026

Deployments and SBAC

Outsized deployments (vs. expectations) would be a net positive for tower operators.

International International markets are deploying 4G spectrum and are in the infancy of 5G deployments, when compared to the US. AMT and

Positive 2026

Deployments Carriers will likely continue to deploy at scale. SBAC

Market expectations have increased for a Fed rate increase. Tower stocks are negatively correlated with rates in addition

Rising rates =

to having resilient business models. Our correlation analysis implies a 5.2%, 4%, and 4.9% stock move for AMT, CCI, and AMT, CCI,

Interest Rates Negative Falling 2026

SBAC, respectively, on a 100bp change in 10-year treasury yields. We estimate <100bp impact to AFFO/share at AMT and SBAC

rates = Positive

and CCI from 100bp higher refinancing rate and just over 100bp drag on SBAC.

Source: BofA Global Research

BofA GLOBAL RESEARCH

Spectrum auction positive for towers

The FCC has a mandate to auction C-band spectrum by July 4, 2027. We expect

incremental discussions surrounding the auction and potential participation of LEO

operators to be a positive for tower companies. Carrier commentary on spending at

future auctions has been mixed, but we expect strong participation and increased

discussion of 6G builds as the auction nears. Further, LEO operator terrestrial ambitions

2 Communications Infrastructure | 28 May 2026

CR