Cellular companies need cell towers to operate their networks and these are installed on ground. Companies don’t buy these properties for tower installation, but get them on lease. A tower lease is kind of renting a place for use and paying the owner rent in exchange. A tower lease includes negotiation for the rates, agreeing to mutual terms and conditions, adding new clauses in the agreement or removing any existing one and then finally signing on the agreement.
It depends on both the parties the telecommunication company and the property owner that what kinds of tower lease rates they agree on. Also, there is another to explain that it’s not up to you if you want a cellular company to install a cell tower on your property. You don’t have any authority over this decision, and it completely depends on the cellular company that what property it chooses to rent and where it will be located. Tower lease rates vary in different locations, countries and states and it mainly depends on the tower type that what kind of property the company chooses and how much it is willing to pay to the owner for lease. Big cities have higher rates where suburban areas have lower tower lease rates.
What are the elements that affect tower lease rates?
There are number of elements that affect tower lease rates and it usually depends on the property, site location, present economic situation and the position of the company in the situation. If the company is going to install a new tower on the site, it can get better tower lease rates but on the other hand, if it wants to renew the agreement for an existing and functioning tower, now the negotiation depends on the one who owns the property.
If the cellular company is operating a large network in the country, it can go for higher tower lease rates because it is worth paying more but when it’s a small or local company, the owner of the property should know that even if he asks for more money, the company won’t be able to pay him that. It also matters a lot that where the site is located. If the tower site is in a big city where the company can’t find any other empty place to rent, all the balls are in court of the owner and he can ask as much he wants but when the site is located in a suburban area or on a farm house, there definitely will be other empty places in the area and when the company have other choices to consider, now the owner can’t force the company to increase the tower lease rates.