Securing Your Site and Income in a Changing World
One of the biggest worries for cell site landlords today is whether they will lose their cell site tenants. That’s not surprising. Constantly evolving technology has changed more than how people communicate. It has changed the way operators do business.
New technology drives what a cell site network looks like. Back when cell phones were first used, they cost thousands of dollars and airtime was expensive. Cellular telephone equipment was housed in racks, was very expensive to maintain and was often located in the tallest site around. Today, for the latest technologies, the equipment is the size of a suitcase, tall towers have made way for shorter sites, and they’re much cheaper to manage.
The growing capabilities of mobile devices combined with the millions of users has changed how operators must provide service. What was once a valuable cell site may no longer be if it cannot meet the needs of new technology. Right now, new compact base stations and femtocells are changing the way operators plan their networks. The once important mountaintop site can be replaced by multiple tall rooftop sites, which in turn could be replaced by lower rooftop sites, which then could be replaced by femtocells or compact equipment on light poles. Some traditional cell sites could become obsolete altogether.
Operators must continually invest in this new technology to stay competitive. Their capital investments put a lot of pressure on their operating expenses. What’s more, while users enjoy more and more features on their mobile devices, they are paying less for service and sometimes, nothing, for the handset itself.
For example, one operator in the US offers a free feature-rich mobile phone with music capabilities and unlimited email service for just $40 per month.
Operators can’t control the cost of keeping up with new technology, nor can they control the decreasing cost of service plans, so they must find a way to control other expenses. And one of the biggest expenses is cell site rent.
Controlling the cost of cell site leases is an industry-wide effort. All operators building new cell sites are putting much more flexible rent structures into place. Sometimes the lease rate is 80% less they previously have paid for sites. Operators are also carefully evaluating their current cell sites to determine which are necessary to the network. An important factor in their decision is the cost of the site. Landlords who are able to partner with operators to create less constraining financial terms are more likely to guarantee their cell site rent for years to come.
Have You Been Contacted?
If you have been contacted by Md7, it is because the operator has selected your site to participate in a program to secure your site. We have been authorized by your operator to explain the program to you. Md7 will give you information about how the many industry changes could affect your cell site and what you can do to secure your rent.
Please contact Md7 today so that we may qualify you to participate in this program.