The biggest reason property owners receive a small fraction of the amount of revenue being received from the use of their land is the lack of information they have when it comes to land value for telecom purposes
(PRWEB) April 11, 2012
After AT&T's $39 billion merger with T-Mobile recently fell through, biggest waves may be felt in a cell tower land rush by cell tower operators like Crown Castle International, American Tower and SBA Communications. Property owners across the U.S. can benefit from such a rush.
After this merger was blocked by the U.S. government, T-Mobile still benefited, gaining $3 billion in cash and $1 billion worth of a wireless spectrum. After acquiring billions, T-Mobile has committed to building out a 4G LTE service that, according to T-Mobile, is set to launch next year. Expanding T-Mobile’s network to the 4G LTE will yield the retention of current cell tower sites in addition to cell tower construction on properties across the U.S. as the company continues to meet the growing demand of data usage.
Not only are the cell towers that were once to be removed from property owners’ land, staying in place and are still functioning, but they are also more valuable to the property owners leasing their land for the cell tower placement. Tower Companies like American Tower, Crown Castle and SBA who dominate this market because of virtually exclusive agreements with national telecom carriers, will be among a few others benefiting from this failed merger according to analysts. What property owners need to realize is this: Tower Company benefits, property owner should too.
Property owners throughout North America should be aware the failed merger and expansion of T-Mobile’s 4G LTE network impacts not only the value of their land when negotiating a lease for a new tower structure, but also the value of their existing lease agreements. These tower companies need new sites to keep up with telecoms’ demands for cell towers that facilitate services provided by their networks. In addition to this, cell tower companies must secure the sites they currently have in order to achieve the aforementioned goal—all of which increase the value of property owners’ land, whether it is potential land to be leased or land currently leased to tower companies.
Cell tower companies, while making approximately $2 billion a year in sublease rent revenue, maintain and expand disparity in what they pay property owners for an area of land that these same tower companies lease to telecom carriers like AT&T, Verizon and T-Mobile. It is estimated that in 2011, the cell tower companies paid property owners a mere 12% of the sublease revenue generated.
Hugh Odom the President of Vertical Consultants, a company that has proven itself a leader in telecom consulting and property owner advocacy, states “The biggest reason property owners receive a small fraction of the amount of revenue being received from the use of their land is the lack of information they have when it comes to land value for telecom purposes. The cell tower companies will continue to rely on this disparity of information as both the need to secure current sites and acquire new sites increases.”
Odom finally proclaims that “Property owners should know their options, as they can continue to make it easy for cell tower companies to increase profit margins, or they can explore all the alternatives they have to receive true value for the use of their land as it relates not only for new cell tower opportunities but existing cell tower leases currently encumbering their property as well.”
Vertical Consultants was founded in 2010 by Hugh Odom and is comprised of a group of wireless industry veterans with more than forty (40) years of combined 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 firstname.lastname@example.org or 877.456.7552.