US-based towerco SBA Communications has confirmed it is exiting Colombia with a sale of its tower assets to a yet undisclosed buyer, with further details to be announced at a later date.
SBA Communications stated that the deal is expected to close by the end of Q1 this year, citing a decision to exit small subscale markets and focus capital on core operating markets instead.
This follows a trend by SBA Communications to increase its due diligence on tower deals and asset allocation; the towerco also sold 169 telecom towers in the Philippines in January.
With just 206 towers in the country, Colombia is one of SBA Communications’ smallest country portfolios. The market is also home to a competitive tower landscape with 15 different towercos present in the market, operating a combined 21,594 sites along with mobile operators Claro, Movistar, Tigo and WOM.
Colombia’s ongoing financial restructuring within the telecom market as operators seek to stay competitive while modernising their infrastructure reflects rising demand telecom infrastructure and impending consolidation of tower assets.
SBA Communications’ Q4 2024 financial results reflects a continued focus on their core US operating market, where around half the towercos assets and the bulk of earning revenues sit.
“Our US customers continue to invest in their networks, deploying mid-band spectrum in support of Fixed Wireless Access and 5G coverage expansion, as well as investment in general network densification and expanded rural coverage. This dynamic should be favorable for organic leasing growth on our US assets for the next several years” said President and CEO Brendan Cavanagh.
Commenting on their international strategy, Cavanagh stated they “saw solid leasing activity while we continued to expand our portfolio in certain markets and streamline operations in others.”
“Subsequent to year-end we exited our operations in the Philippines and entered into an agreement to exit Colombia, eliminating subscale markets and allowing us to better focus our attention on growing and operating other key markets”.
