We don’t need to tell you that 3G and 4G coverage isn’t available everywhere. While technology is definitely changing fast and 3G/4G rollouts have been going on for years, some places still do not have coverage. Even if you buy the best or the newest smartphone on the market, you’re still not guaranteed fast network service throughout the USA.
In fact, before 4G is complete, 5G will be introduced. You can learn more about 5G by reading our article What is 5G and how will it impact your life for the better?
It’s a fact that the demand for connectivity increases as more and more devices require a wireless connection. In the UK, there are at least 23,000 cell towers, which is undoubtedly a considerable number, though perhaps it doesn’t sound as staggering compared to the 300,000 built in the US in the past 20 years. However, it’s also true that companies can go bankrupt or are often bought by others. In the event of a merger between two wireless carriers, existing cell sites risk being decommissioned.
So, what happens to your lease with a wireless carrier if the company suddenly goes bankrupt?
What You Need To Know About Wireless Carrier Bankruptcy
There’s no sense in sugar coating it, carrier bankruptcy is a reality. If the wireless carrier we entered into a lease agreement with goes bankrupt, the rent we receive could be lost. Moreover, if carrier A buys bankrupt carrier B, there will no doubt be overlap in coverage which will result in the decommissioning of a considerable amount of cell towers.
Have you been wondering whether entering into a lease buyout transaction affects ownership of your property? As the leading cell tower and rooftop antenna lease investment firm in the world, we want to put your mind at ease. In order to do this, we feel it’s important to clarify the difference between your property rights and contractual rights. Once you understand how these differ, we’re convinced you’ll appreciate how partnering with APWireless is a win-win situation.
Given that your contract with the wireless carrier, your property and APWireless are different, their legal roles are not the same.
Are you considering selling your cell site lease to a lease prepayment company? Before you move forward, it’s important to realize that not all cell tower or rooftop antenna lease buyout companies have relationships with carriers the way we do or will offer you the same favorable terms.
APWireless prioritizes a good relationship between wireless carriers and landlords, developing long-term partnerships that benefit all three parties involved: the landowner, the wireless carriers and the cell site lease investment firm. As professionals in the field, we only seek out win-win-win solutions.
As the leading cell site lease investment firm in the world, APWireless currently has over 4,000 cell sites worldwide. The bigger our presence, the bigger our voice in the industry, which motivates carriers to want to work with us. What does this mean for you as the landlord of a cell site? More cell sites in better locations increase wireless carriers’ efficiency for new site colocations.
It’s worth noting that as mobile technology changes, wireless infrastructure needs to be upgraded to keep up with the demands and remain efficient. You can find out about the transition to 5G and its impact by reading the article What is 5G and how will it impact your life for the better? How will this affect current wireless infrastructure?
In the USA, the wireless telecommunications industry is led by four carriers, which create 95% of the revenue in the industry. These wireless carriers rely on infrastructure that needs to be upgraded with each new iteration of technology. For this reason, the wireless telecommunications industry is heavily impacted by developments in systems and technology infrastructure, such as the transition from 4G to 5G.
Did you know that, as a landlord, you can have multiple cell site leases with different wireless carriers? Network sharing has many benefits for wireless carriers, including, reducing costs and providing or expanding coverage in congested areas where space for cell towers or rooftop antennas may be limited. Network sharing can even have a positive impact on the environment, thanks to the optimization of scarce resources.
There are many types of cell site network sharing, but the following are the most common forms of infrastructure sharing:
You probably already know about the benefits of receiving a cell tower lease buyout in exchange for your cell site rent, but are you still wondering what the actual terms entail? Whether you’ve already signed a contract with APWireless or are still deciding if it’s the right thing for you, learning more about the terms and conditions of a cell tower lease buyout is sure to give you peace of mind.
Your property remains your own
A cell tower lease buyout does not affect the ownership of the property in any way, nor the rights that the wireless carrier has in the lease agreement. As the property owner, you will receive a prepayment in the form of a lease buyout in exchange for the right to receive future cell site rent from the carrier.
It’s important to note that APWireless buys the rights to receive cell tower or rooftop antenna rent for a specified period of time. This means that the right to receive rent for your cell site will revert back to you once this period ends.
The world of investment goes beyond stocks and bonds. As demand for cellular network usage and the expectation of uninterrupted access to the internet continue to grow, cell tower and rooftop antenna leases become an increasingly strong financial asset and a great way to diversify your investment portfolio. Cell towers need to be placed close to each other so users can stay connected as they travel across the phone grid. There are hundreds of thousands of cell sites across the world, which translate into just as many investment opportunities. If you were approached by a wireless carrier to have their infrastructure installed on your property in exchange for a monthly payment, would you consider entering into a cell tower lease agreement?
Whether your answer to that question is a definitive yes or you’re still weighing your options, APWireless can provide you with all the information you need to make up your mind.
Have you received an offer of purchase on your cell site lease? Are you wondering whether the smart move is to take it?
Cell site leases vary greatly, from county to county and one state to the next, but the one thing they have in common is that the rewards are often reaped in the long run. You can decide to cash in early and receive a substantial up-front lump sum for your lease. APWireless can provide you with a cell tower lease prepayment in exchange for the future rent that you would receive for the cell site on your property. What you do with this money is entirely up to you and the possibilities for reinvesting it are endless.
Your cell tower lease is already a significant source of income, but you can gain more security and money by taking charge of your cell site rent. The following are just some of the benefits of reinvesting a lump sum:
Have you started hearing about 5G but aren’t quite sure what it is or why we need it? Technology changes very rapidly. If you’re a non-digital native, perhaps a Xennial or a younger Gen Xer, you probably started using mobile phones in your teens, long before the smartphone came along. Since then, chances are you’ve owned your fair share of devices, and with each new mobile phone upgrade, you have experienced a new iteration of technology. These days, we practically consider a stable internet connection a basic necessity (How did we even survive without 24/7 access to the internet?), and it’s not just our mobile phone and computer that require a mobile internet connection. We don’t need to tell you that technology makes life easier, but perhaps you’re wondering how 5G will make your life better.
Before we get into it, there’s one thing that needs to be said: there is no official definition of 5G yet. The 5G standard won’t be set until 2018. However, there are many points on which all the main players agree.
New 5G technology is coming to the US with alarming speed! Much like the jump from 2G to 3G, 5G will be a revolutionary step for today’s society. The network coverage will be much larger than what has been previously offered to consumers across the globe including remote parts of the world. Along with increased coverage, loading speeds will be 100 times faster (www.cnet.com). So fast that you can download HD movies in mere seconds! As smart phones and tablets become more prominent, wireless networks will be able to use this advanced 5G technology to accommodate an expected increase of over 1,000 times more data usage, and more than double the amount of broadband subscriptions over the next 5 years (www.lightreading.com).
As a cell tower or rooftop antenna lease owner, otherwise referred to as the landlord, it is important to understand the structure of and terminology within your lease. While we can’t cover all lease terminology, we can help demystify the legal language of the most common terms within your lease, license, rooftop, or other surface use agreement. Having reviewed thousands of these agreements, we have found the following terms to be used in the majority of cell site leases: Option, Easement, Use, Term, Termination, Rent, Taxes, Utilities, Indemnification and Insurance, Default, Assignment and Subletting, Right of First Refusal, and Amendment.
Leases will generally define a period of time that allows the tenant to do their due diligence. Typically this appears early in the lease and is called the “option” or “option period”. It describes the area to be considered and should also state a certain period of time—usually 1 year—for their due diligence and the consideration to be paid in order to make the agreement binding. At this point the landlord is locked in and gives full rights of use to the tenant, should they choose to take it. The option section will also provide some information as to what the due diligence will entail.
Along with the defined area to be leased, the carrier or tower company will also need access to the site and available area to run fiber, utilities, or other underground cables or equipment to operate the site. Additionally, the type of easement to be granted (access, utility, etc.) and the location of said easement will be identified here.
Millions of people travel far distances every year to visit loved ones and enjoy a hot meal together on Thanksgiving Day. As the holiday approached people start to look forward to feasting with family and friends, relaxing with a warm pumpkin spice lattes, and shopping black Friday and cyber Monday deals until they drop. However, before jumping into the festivities of the season let’s remember that Thanksgiving is a time to truly reflect on the things which we are most thankful for. Take the time to be grateful for the good things in life.
We at APWireless have a lot to be grateful for, so we want take advantage of this special date to thank all of those who have helped make our business a success. First, we give a heartfelt thank you to all the individuals that make up the APWireless team. They work day in and day out to establish businesses relationships across borders and have a real desire to help others in the work that they do. We are honored to have such an amazing team of professionals working together, without their collaboration we would not be able to provide our landlord partners with the services we do today.
Wireless carriers realize that building more traditional macro cell towers is not always a viable solution due to the large amount of space these installations require, along with the high price of building and maintaining them. The answer just might be in small cell technology. With a small footprint, this new alternative for higher capacity data can provide a range of 3 feet within urban areas, and up to 1.3 miles for more rural locations. Although small cells have not yet gone mainstream, they are on the rise as the best solution to deal with traffic in high-density areas in a reliable, inexpensive, and easy-to-install way.
Money today is literally worth more than it will be in the future in terms of what it will buy you. In 1985, before you drove to the grocery store to buy a gallon of milk for $2.25, you would complain about spending $1.20 per gallon to fill up the tank of the car you had just purchased for $8,300. Today, milk costs an average of $3.67, you are more than happy to spend $2.50 per gallon at the pump, and buying a new car will put a $32,500 dent in your bank account. You can largely thank inflation for this.
But inflation isn’t entirely to blame for rising costs nor does it explain why in 1985 the average home in San Francisco sold for $140,000, whereas today the median home price in the city has now risen to $1.36 million!! There are countless reasons why costs skyrocket with time, including popularity, world events, diminishing resources, natural phenomena, technology, etc.
With ever-increasing speeds, accessing the web from your mobile device has become even more convenient and sometimes faster than using your home computer. This is the type of technology that brings “mobile” lifestyle to the next level, giving us the ability to do anything from anywhere.
For years smartphone ownership has been on the rise, with 80% of adults owning at least one smartphone and spending about 11 hours a day with electronic media. Without network expansion, this increase in data demand can negatively affect the performance of your smartphone by reducing speeds. We can probably all agree, it is extremely frustrating trying to visit a page or watch a video and the data just isn’t working. We want our internet to be faster; we need our internet to be faster. Our everyday lives changed after the introduction of 3G technology and mobile data usage, and with the spread of 4G LTE, life will just get better. So what makes 4G LTE so great?
September is “Hunger Action” month at The Jacobs & Cushman San Diego Food Bank, and this year APWireless is taking part, helping those less fortunate by supporting the campaign.
As the largest hunger-relief organization in the county, the San Diego Food Bank’s goal is to distribute enough food to feed an average of 370,000 people a month and to reach that goal they need the help of the community. As such, the San Diego APWireless office has been collecting canned foods and other non-perishables as a way of helping others.
Although it is celebrated on different days all around the world, we all come together with the same intent, to honor the social and economic achievements of hardworking men and women over the decades. This celebration goes above and beyond the recognition of the individual worker and takes pride in the accomplishments of those individuals who have fought together through activism and labor movements. Pushing for fair wages, improved working conditions, shorter work days/weeks, and children’s rights in the working world.
With the increased practice of holiday sales, backyard barbecues, mini vacations, and plenty of rest and relaxation on this three day weekend, the true meaning of Labor Day can get a little hazy. We, however, cannot forget the importance of this occasion as a time to reflect on the courage of the working people who brought us Labor Day and the many working benefits we enjoy today. This Labor Day, enjoy your day off in whichever way you choose, but let’s also take a moment to reflect and appreciate the team of working individuals that make our lives function day-to-day. Doctors, Fire-Fighters, members of the Military are widely recognized and appreciated, as they should be, but we should also cherish the workers that are not often remembered.
In recent years, wireless carriers have employed contractors to reduce cell tower rents. Typically the contractor would staff a call center to contact landlords with a “canned” pitch: carriers were re-assessing their networks, and landlords could protect their site by accepting a significant rent reduction. In other words, service providers acted principally on behalf of wireless carriers, and against landlords.
This approach has contributed to a rising level of distrust between wireless carriers and cell tower landlords. APWireless have proven that there is a better way, a “win-win” solution that appeals to wireless carriers and cell tower landlords alike: cell tower lease buyouts.