Redundancy Risk in the 5G Era: Using Audits to Guard Against Sudden Decommissions
In the ever-evolving landscape of telecommunications, carriers are constantly evaluating their need for the cell tower leases they hold. While they’re happy to pay for valuable cell tower leases, they’re also always willing to reduce costs through redundant tower removal. To protect against cell tower companies that are constantly pruning their portfolios, Cell Site Advisors can help leaseholders with proactive negotiation strategies to safeguard their lease income.
Cell Site Advisors Audit for Decommission Threats
During cell tower lease valuation and negotiation, our experienced consultants at Cell Site Advisors use market knowledge, industry relationships, and audits of maps of the region to forecast cell tower leases that may be likely to be considered redundant. Our audits analyze the neighboring markets to determine current traffic and coverage areas, allowing us to request language in your lease that protects you or makes it less likely that a carrier would invoke a termination clause.
Our Strategies to Minimize Termination Clause Risk
If your site is identified during cell tower lease valuation as being at risk for termination in the future, our team works with our in-house legal team to strategically negotiate your lease with things like higher notice periods or lump-sum exit payments. While it’s not always possible to prevent redundant tower removal, part of our process includes making sure that landowners are secured with up-front payments upon termination that can help to mitigate the loss of future payments. There are situations where the carrier can terminate the lease, but we work hard to make sure that’s the least attractive option for them.
Anticipate Shifting Carrier Priorities
As 5G technology evolves and expands, carriers will continue to recalibrate their network footprints and audit their existing agreements. Cell Site Advisors helps make sure landowners stay informed about the current lease trends and network changes to lower the “termination clause” risk. Our proactive efforts and 20+ years of experience are essential to safeguarding the revenue of our landowners and ensuring their cell tower leases remain secure.
If you’re ready for assistance in securing your lease and making it less susceptible to termination, Cell Site Advisors is here to help. Together, we’ll work to properly evaluate and renegotiate if necessary, or get your new cell tower lease started off in the right direction. Contact us to schedule your free consultation.
About the Author
Ted Unkel is a principal at Cell Site Advisors, which specializes in negotiating telecom leases and transactions for property owners. He has more than 20 years of experience in the telecom industry, mostly working in nationwide negotiations on behalf of Crown Castle, a real estate investment trust that works with landowners and property owners on cell-tower leases and real estate infrastructure.