April 28 (Reuters) - SBA Communications ( SBAC ) raises forecast for annual funds from

operations (FFO) on Monday, signaling steady wireless carrier activity amid rising telecom

expansion.

The wireless tower operator is benefiting from the rising demand for 5G, as telecom

companies are spending to expand their network, especially in rural areas.

The U.S. telecom sector is recovering as customers return to take advantage of bundled plans

offered by telecom operators such as Verizon and AT&T ( T ).

"Carrier activity levels in the U.S., represented by both new leasing business signed up and

services volumes, continued to grow in the quarter. We also saw our U.S. leasing and services

application backlogs increase from year-end, providing us confidence in continued solid activity

levels throughout the year," CEO Brendan Cavanagh said.

The company expects full-year FFO to be between $12.53 billion and $12.90 billion, the

midpoint of which is slightly above analysts' average estimate of $12.6 billion.

SBA Communications ( SBAC ) leases space and manages tower sites for wireless carriers including

AT&T ( T ), T-Mobile and Verizon.

The company posted first-quarter adjusted FFO - a key measure of cash flow - of $3.18 per

share, compared with analysts' estimate of $3.11 per share, according to data compiled by LSEG.

For the quarter ended March 31, the company reported revenue of $664.2 million, beating

analysts' estimate of $662 million.