Cell Tower Lease Value Rises as AT&T Phases Out 2G

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Vertical Consultants reveals that network modifications and wireless demand impact cell tower property owners.

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The true value of the telecom industry is rooted in the ground space needed to house equipment that will facilitate network advancements

AT&T recently indicated in a regulatory filing that it would phase out its 2G service by the beginning of 2017. Shutting down their 2G network will allow AT&T to free up space for 3G capacity while the telecom giant builds out its 4G network. The second largest telecom company’s phase out of this service will impact property owners engaged in cell tower leases with the telecom giant.

As telecom companies find ways to free up space on their networks due to overwhelming data demands, cell tower leases associated with these companies become more valuable, however the property owners involved in these leases may not realize it. According to the Wall Street Journal, with every network generation, the technology becomes more efficient at carrying information. As a result, companies can get better and more profitable usage from shutting down older networks in favor of newer ones.

According to AT&T, the demand for wireless service in the U.S. is causing the company to face significant capacity constraints on its wireless network in certain markets and expects constraints to increase and expand to additional markets. Supply and demand is evidenced in the case of cell towers and their capacity, value and negotiations related to their existing leases. Though the value of property owners’ cell tower leases increases with the growing demand for wireless capacity, many property owners are not aware of this, therefore do not receive full value for the use of their land.

Vertical Consultants, a telecom consulting firm, successfully demands fair treatment for property owners engaged in cell tower leases and those looking to enter into one. In 2011, Vertical Consultants doubled property owner’s cell tower rent revenues, on average. In less than two years the telecom consulting firm has recovered over 100 years’ worth of unpaid cell tower rent and expenses, collectively. These statistics, along with telecoms’ high profit margins, highlight the wide disparity between telecoms and property owners.

Hugh Odom, President of Vertical Consultants states, “Demand for wireless service is constantly growing and telecom companies must find a way to meet this demand. The true value of the telecom industry is rooted in the ground space needed to house equipment that will facilitate network advancements. Our goal is to provide property owners information and representation they need in order to achieve full value for their land and correlating telecom leases because it is their land that is the true foundation of the telecom industry, not the steel towers protruding from their land.”

Vertical Consultants, founded in 2010 by Hugh Odom, is comprised of wireless industry veterans with decades of experience. Vertical Consultants specializes in issues surrounding the wireless telecom industry and prides itself as a source of information for property owners. Vertical Consultants experience in the industry allows it to offer its clients unmatched expertise, services and results. Unlike others in their field, Vertical Consultants is able to handle every aspect of the issues surrounding a cell tower, rooftop or any other type of telecom lease, from start to finish. To learn more visit http://www.vertical-consultants.com or contact Vertical Consultants at info@vertical-consultants.com or 877.456.7552.

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Joanna Gaston

Hugh Odom
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