| While cell towers actually started being | | | | If so, then that opens the opportunity to |
| built in the late 1970's, the boom in | | | | renegotiate. Many times, the wireless |
| development did not really start until | | | | company that owns the tower will be in touch |
| Congress passed the Telecommunications Act of | | | | way before the lease expires to |
| 1996. Instead of having two wireless | | | | renegotiate.If the lease does not give the |
| providers in any one area, customers now | | | | landowner the right to terminate, then the |
| found that there were up to eight companies | | | | chance of successful renegotiation declines. |
| with licenses from the FCC to provide | | | | The only basis for renegotiation would be if |
| Personal Communications Service (PCS) in | | | | the wireless company has breached the lease |
| their area.Initially, each wireless provider | | | | agreement by failing to pay or by violating |
| built its own towers and rarely collocated | | | | another clause. It is important to note that |
| (shared) on the other's towers. This made | | | | most lease require that the landowner notify |
| for rapid development of communication sites | | | | the lessee of a breach and they are given the |
| and towers and a plethora of landowners with | | | | opportunity to cure it. The most common |
| cell towers on their property. As you can | | | | reasons for breach in a cell tower lease |
| imagine, many landowners had little to base | | | | include failure to pay rent, failure to get |
| the lease negotiations on and signed | | | | approval to sublet the site to another |
| agreements that were substandard in | | | | company, failure to get consent to an |
| comparison to today's lease rates.Today, with | | | | assignment of the tower, and failure to |
| the advent of much information (or | | | | maintain the site location as required. If |
| misinformation) on the internet, those same | | | | you believe that the tower owner has breached |
| landowners are learning that the deal they | | | | the lease, seek legal counsel and make sure |
| signed might not be a good one. As the | | | | to notify the tower owner promptly.In the |
| standard cell tower lease is a 25 year lease | | | | event that you decide that a lease can be |
| with termination rights only vested in the | | | | renegotiated, it is best to hire a consultant |
| lessee (cellular carrier), the landowners | | | | or attorney with experience with in |
| often wonder if they can get out of the lease | | | | negotiating wireless leases and whom is |
| or renegotiate it.The answer to this question | | | | familiar with what fair market rates are for |
| is not an easy one and resides in the cell | | | | communication tower and cell site leases. If |
| tower lease document. Fortunately for some | | | | you determine that the lease cannot be |
| landowners, the lease agreements signed in | | | | renegotiated, then just sit back and continue |
| the early days after 1996 were not as | | | | to receive your "mailbox money".Ken Schmidt |
| advanced as those of today. Many lease | | | | is the owner of Steel in the Air, a cell |
| agreements were only for 10 years and | | | | tower consulting firm. Steel in the Air |
| landowners with those types of agreements may | | | | provides expert consultations on cell tower |
| now have the ability to reneogtiate for a | | | | valuation, cell tower lease negotiations, |
| better deal.The key here is that the lease | | | | lease renegotiations and lease buyouts. Ken |
| agreement must state that the landowner has | | | | has been quoted on cell towers in the NY |
| the right to terminate as well as the lessee. | | | | Times and numerous other publications. |