A certain cellular carrier that will remain anonymous, we will refer to them as "Carrier V" has really lost touch with the cell site leasing market and how things work. They really think that they are the BIG DOG, and that they are going to dictate terms to everyone in the Western Pennsylvania market when it comes to leasing cell sites and cellular towers.
Someone in Carrier V's organization actually got it into their head that they can set a "ceiling" market price for cell site leases that are at least 50% below the average that Carrier V is paying everywhere else. They will also tell you that they "never" share in co-location fees when they sublet tower space to another carrier. Let's just say that this is something that would have caused Pinocchio's nose to grow.
Basically, the nice folks over at Carrier V want to convince landlords to take a few hundred dollars and if they can, get four additional carriers on that same property for which they will be getting at least an additional $8,000 a month... that's right A MONTH. That is over $96,000 a year that they are potentially making on sites in Western PA, and giving the landlords nothing extra for.
Here is the secret that they don't want you to know...
They pay much higher rates for cell site space in every other market. They are also willing to provide co-location revenue sharing with owners everywhere else in the United States. Erie PA is not that rural. They pay rental rates two and a half times larger than that in rural Northwestern New Jersey, Upstate New York and the farm belt in Indiana.
Why not Pennsylvania? Two reasons most likely:
1) Some rocket surgeon thinks that they will make Vice President at Carrier V by taking advantage of property owners negotiating cell sites leases.
2) Property owners in the area are not getting proper cell site leasing guidance and need to seek assistance from a qualified wireless expert to help guide them.
The smart and nice folks over at Carrier V actually confirmed to us over the phone that they never pay more than that. So when we asked them "if they paid double their stated "ceiling" amount to locate on a site owned by a cell tower company, another carrier or a municipality", their answer was "yes". OOPS.
So... when Carrier V is dealing with knowledgeable individuals, they will pay above fair market value. Apparently Carrier V thinks that the average landowner is ignorant in Western Pennsylvania and they can take advantage of them.
Landlords, you deserve a fair deal on your cell site leases. Hear us now?
About this Author
Steve has ten years of wireless site acquisition, cell site lease negotiation and wireless project management experience. He is a Partner at Airwave Management LLC, a New Jersey-based cell site lease consulting and rooftop cellular communications site management firm. Steve's firm also specializes in assisting wireless landlords in the review and negotiation of cell tower lease buyout offers in the United States. Find Airwave Management on the web at http://www.Cell-Tower-Leases.com or you can reach Steve at 1-888-313-9750.
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