Guinness Global Real Assets Fund on SBA Communications Corporation
Thesis
Guinness holds SBA Communications Corporation and argues that fears of satellite disruption to mobile towers may be overstated. Management teams in the sector see satellite services primarily as complementing terrestrial networks because densely populated mobile markets still need sites with power and fibre. Existing towers close to population centres are difficult and slow to replicate, so an expansion of Starlink into terrestrial mobile services could create new tower customers rather than displace them. Guinness points to possible SpaceX leasing demand for around 80,000 physical sites as a potential catalyst for sentiment and valuation recovery, while acknowledging the arrangements remain unsigned.
“a terrestrial expansion by SpaceX could create demand for existing tower infrastructure.”
Key risks
- A broader Starlink mobile service could compete with carriers and reduce tower demand.
- Satellite coverage could replace terrestrial towers in some remote locations.
- Higher interest rates and customer churn have already pressured tower-sector growth and sentiment.
- The prospective SpaceX tower-leasing arrangements have not yet been signed.