Ahead Of The Bell: Telecom Infrastructure

HARTFORD, Conn. (AP) — Federal stimulus spending for broadband expansion will drive telecommunications network infrastructure, particularly benefiting small companies, an analyst said Friday.

Jefferies & Co. analyst Jonathan Schildkraut said federal broadband stimulus money distributed to smaller carriers and others "will drive new mobile network buildouts" and require investment in wireless infrastructure such as tower cell sites.

The federal government said last month it has received requests for $28 billion from groups that want to expand high-speed Internet service in the United States. The government has $4 billion in loans and grants initially available.

Companies that could benefit are American Tower Corp. of Boston, Crown Castle International Corp. of Houston and SBA Communications Corp. of Boca Raton, Fla., Schildkraut said.

The National Telecommunications and Information Administration said that of the requests for money under the broadband stimulus program, $21 billion were for grants and the remainder for loans, for a total 2,187 projects.

Wireless technology is involved in more than one-third of the projects, Schildkraut said.

Shares of SBA Communications rose 91 cents, or 3.6 percent, to $26.50 in premarket trading. American Tower rose 23 cents to $35.19.