SBA Communications Corporation operates as an independent owner and operator of wireless communications tower structures, rooftops and other structures that support antennas used for wireless communications, which the company collectively refers to as ‘towers’ or ‘sites’. The company’s principal operations are in the United States and its territories. In addition, the company owns and operates towers in South America, Central America, and Canada. The company’s primary business line is its site leasing business. In its site leasing business, the company leases antenna space to wireless service providers on towers that the company owns or operates; and manages rooftop and tower sites for property owners under various contractual arrangements. As of December 31, 2015, the company owned 25,465 towers, a major portion of which have been built by the company or built by other tower owners or operators who, such as the company, have built such towers to lease space to multiple wireless service providers. The company also managed or leased approximately 5,500 actual or potential towers, approximately 500 of which were revenue producing. The company’s other business line is the company’s site development business, through which it assists wireless service providers in developing and maintaining their own wireless service networks. Site Leasing Services The company’s primary focus is leasing antenna space on its multi-tenant towers to various wireless service providers under long-term lease contracts in the United States, Canada, Central America, and South America. The company’s site leasing business is classified into two segments, Domestic Site Leasing and International Site Leasing. Domestic Site Leasing As of December 31, 2015, this segment had 15,778 sites in the United States. The company receives domestic site leasing revenues primarily from AT&T Wireless, Sprint, Verizon Wireless, and T-Mobile. In the United States, wireless service providers typically enter into tenant leases with the company, each of which relates to the lease or use of space at an individual tower. The company’s tenant leases in the United States are generally for an initial term of 5 to 10 years with five 5-year renewal periods at the option of the tenant. The company’s ground leases in the United States are generally for an initial term of five years or more with multiple renewal terms of five-year periods, at the company’s option, and provide for rent escalators, which typically average 2-3% annually. International Site Leasing In 2015, this segment continued to focus on improving the company’s international site leasing business through the acquisition and development of towers. As of December 31, 2015, the company owned 9,687 towers in its international markets, including Brazil, Canada, Costa Rica, Ecuador, El Salvador, Guatemala, Nicaragua, and Panama. The company receives international site leasing revenues primarily from Oi S.A., Telefonica, Claro, Digicel, and TIM. The company’s operations in these countries are solely in the site leasing business, and it expects to continue to expand operations through new builds and acquisitions. The company’s tenant leases in Canada typically have similar terms and conditions as those in the United States with an initial term of 5 to 10 years with five 5-year renewal periods at the option of the tenant. These tenant leases typically contain specific rent escalators, which average 3-4% per year. Tenant leases in the company’s Central American and South American markets typically have an initial term of 10 years with multiple 5 year renewal periods. Domestic and International Expansion The company expands its tower portfolio, both domestically and internationally, through the acquisition of towers from third parties and through the construction of new tower structures. In its tower acquisition program, the company pursues towers that meet or exceed its internal guidelines regarding returns. In the company’s new build program, it constructs tower structures in locations that are chosen by the company or under build-to-suit arrangements. Under build-to-suit arrangements, th
sba communications corp-cl a
8051 Congress Avenue
Boca Raton, FL 33487
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