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Cell Tower Land Leases


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If you are a cell phone tower landowner or building lease owner or know someone that is, this article will provide some insight into tactics used by the Wireless Industry to take advantage of unsuspecting cell tower landowners.

When approached by a cell phone company or one of the many lease buyout companies it is important to understand one thing. Companies exist to make money. The wireless industry is no different. I am sure you felt like you hit the lottery and in a way you did, but what if you found out that the lottery was only paying you 1/4 of your winnings.

When you look at the industry it is still relatively young. Consider when you were growing up, I'm sure you remember radio, having to roll the windows up in your car by hand, or using a rotary phone. Now it's the internet, power everything and cell phones. I only mention this so that as a landowner you realize you are part of new technology that has not only replaced the rotary phone, but now your LAN line home phone as well. With that comes the potential to benefit greatly, just as all of us have from using cell phones. Many landowners and attorneys do not have the expertise in this industry to fully take advantage of it's potential. Here are a couple of examples of tactics used by cell phone companies and tower companies.

1.) The cell phone industry is consolidating so that means your tower may be at risk.

In most cases this is just not true. Yes there has been consolidation such as the merger of Sprint and Nextel, as well as Cingular and AT&T. But understand that does not mean less demand for the service that is being provided. In addition there are new companies such as ClearWire that are doing well and growing. Here is another secret, cell phone towers are not only being used for voice communication. Bringing the internet to your phone and other media content including TV is here now, if you have not seen the Apple Iphone I suggest going to at&t's website. This translates into higher cell phone bills which means more money for those companies. Shouldn't that mean more money for landowners?

2.) Use this lump sum payment to pay bills now.

A lump sum offer may sound like a great deal, especially if they offer you seven years at your current rent. There are situations when this is a viable option, but as I mentioned before companies exist to make money. Combine that with the possibility that you are not getting full value for your land contract and ... that is exactly how these companies are making money. Often times they will turn around and re-negotiate your contract for much more and begin profiting from your financial situation. Imagine if you received $500 more a month from your cell phone tower lease. Would this help relieve some of your debt? What if you could get more? Sometimes short term problems can be solved with long term solutions, not always the quick fix.

These are the two common scenarios. The truth is that as a landowner you have a great investment sitting on your property. To learn more or if you have any questions please visit CellSiteNegotiation.com. Cell Site Negotiation was founded as a way to help cell site landowners and building lessors maximize the profit potential of their contracts.

Scott Neeley
Founder and President of Cell Site Negotiation

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