Over the course of the last 25 years, the cellular industry has experienced tremendous growth. Cell phones have graduated from an ultra-expensive communication device to an inexpensive commodity. The cellular network ? the foundation that all cell phones depend upon for service - has rapidly expanded as well. Cellular networks have spent much of the past 25 years leasing property, building "cell towers," and establishing "cell sites" as quickly as possible in order to meet demand. Today, changing cellular technologies are causing cellular networks to re-organize their cell sites and towers (and their leases).
When cellular phone technology first began to gain popularity, the rush was on to build a cellular network as quickly as possible. Most of this expansion occurred during the first and second generations of cellular technology during the late 1980s and 1990s. During these days, cell towers and cell sites were often chosen based on location. Certain properties and buildings offered "ideal" coverage, and cellular networks often paid exorbitant lease rates for these ?ideal? spots because the cellular technology of the time was simply too limited to work anywhere else.
But as the expression goes "times, they are a changin'."
Today, we are now in the third generation of cellular technology, which is completely different than its predecessors of a few years back. The older cellular networks were far less sophisticated than the cellular networks of today. The older cell tower sites often had to use a higher antenna for better coverage. Today, that is no longer the case. Cellular carriers now need to have more sites that are actually closer to the ground in order to offer consumers greater bandwidth. This essentially means that cell towers and cell sites can now be placed almost anywhere.
Because of this positive change in technology, networks no longer need to concentrate on finding the so-called "ideal" areas for cell sites and cell towers.
These advances have benefited the consumer, but cell site lease holders have not profited from this new reality at all. Recently, in an effort to cut costs, wireless networks have been meticulously going over every lease they have because a good number of them are much too expensive in the current climate. Changes in technology have also allowed for an increase in competition between property owners. Now that there is no longer such a things as an "ideal" location, more property owners can offer leases at lower rates than current leaseholders.
Advances in cellular technology in the last 25 years has been magnanimous, and the industry is still aggressively advancing. The physical needs for a cell site have changed, and cell tower leases are now being renegotiated. A good number of the property owners aren't quite happy about renegotiated leases and the lowering of their cell site and cell tower rents, but consumers - and even the entire country - are enjoying the benefits of improved performance, service, and the stability of wireless networks. It's not all gloom and doom as far as landlords are concerned, however. As part of a cell site lease renegotiation, many landlords are able to secure a long-term rent guarantee. Since cellular operators are also one of the best clients a landlord can have, a long-term arrangement is often considered "money in the bank." Still, technology and market forces are conspiring to force property owners to be more competitive in order to retain their tenants. Such is the march of capitalism.
When cellular phone technology first began to gain popularity, the rush was on to build a cellular network as quickly as possible. Most of this expansion occurred during the first and second generations of cellular technology during the late 1980s and 1990s. During these days, cell towers and cell sites were often chosen based on location. Certain properties and buildings offered "ideal" coverage, and cellular networks often paid exorbitant lease rates for these ?ideal? spots because the cellular technology of the time was simply too limited to work anywhere else.
But as the expression goes "times, they are a changin'."
Today, we are now in the third generation of cellular technology, which is completely different than its predecessors of a few years back. The older cellular networks were far less sophisticated than the cellular networks of today. The older cell tower sites often had to use a higher antenna for better coverage. Today, that is no longer the case. Cellular carriers now need to have more sites that are actually closer to the ground in order to offer consumers greater bandwidth. This essentially means that cell towers and cell sites can now be placed almost anywhere.
Because of this positive change in technology, networks no longer need to concentrate on finding the so-called "ideal" areas for cell sites and cell towers.
These advances have benefited the consumer, but cell site lease holders have not profited from this new reality at all. Recently, in an effort to cut costs, wireless networks have been meticulously going over every lease they have because a good number of them are much too expensive in the current climate. Changes in technology have also allowed for an increase in competition between property owners. Now that there is no longer such a things as an "ideal" location, more property owners can offer leases at lower rates than current leaseholders.
Advances in cellular technology in the last 25 years has been magnanimous, and the industry is still aggressively advancing. The physical needs for a cell site have changed, and cell tower leases are now being renegotiated. A good number of the property owners aren't quite happy about renegotiated leases and the lowering of their cell site and cell tower rents, but consumers - and even the entire country - are enjoying the benefits of improved performance, service, and the stability of wireless networks. It's not all gloom and doom as far as landlords are concerned, however. As part of a cell site lease renegotiation, many landlords are able to secure a long-term rent guarantee. Since cellular operators are also one of the best clients a landlord can have, a long-term arrangement is often considered "money in the bank." Still, technology and market forces are conspiring to force property owners to be more competitive in order to retain their tenants. Such is the march of capitalism.
About the Author:
Author Jason Lancaster follows emerging cellular technologies closely. Discover more about cell site leases and cell tower leases at Md7.com.
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