The Growth of Telecom Sites

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News article

The Growth of Telecom Sites

March 2016

telecom

As demand inevitably increases for access to high quality mobile phone data coupled with the ever-growing requirement to have a superfast connection in the palm of your hand, the pressure on mobile phone operators to improve coverage and reduce mobile phone blackspots is a never ending challenge.

Undertaking day to day tasks on your handheld device has now become the norm which has put pressure on operators not only to give faster data to the public but also to upgrade existing cell sites to accommodate new equipment and build new sites to infill and strengthen existing coverage.

The technology to provide faster data has significantly changed but it still relies on a network of telecommunication base station sites. The demand for large numbers of new base stations is only likely to increase in future years with the advent of 5G rolling ever closer and new technologies such as IOT (Internet of Things) and LTE (Long Term Evolution).

As a property / landowner with a mast located on your property, at some point you already have or will receive an application to upgrade equipment, assign the lease, or even to renew the existing Lease. Fisher German would strongly recommend that you seek specialist advice from a firm who acts purely for landlords and not for the operators. It is likely that very attractive terms can be negotiated, including the rent, updated lease terms, payment of premiums and a very healthy contribution towards your costs.

With operators looking to enhance their networks, increase their profit margins and reduce costs, operators have been looking at network consolidation as a means of achieving these objectives. This has led to various Radio Access Network Sharing Agreements and outright purchases as we have seen in recent days with the purchase of Everything Everywhere by BT. Also in recent years Telefonica & Vodafone have created a joint venture company called Cornerstone Telecommunications Infrastructure Limited (CTIL), whose aim is to merge the two networks of Vodafone & Telefonica into one combined network.

Opportunities for landowners 

These network consolidations and outright purchases present many landlords with great opportunities to re gear leases and Fisher German are increasingly finding many agreements where there is huge potential to improve the rent and other terms when the lease is renegotiated. Not only will we achieve you the highest possible rent, but we will ensure that the rent review clause will be on the best possible basis to ensure your rent grows!

Rents for dual operator Greenfield sites average between £5,500 and £6,000 per annum and typically more in the Southern Regions where rents approaching £8000 per annum can be achieved. Rooftop site rents tend to be around the £12,000 to £15,000 for the Midlands with rents within the M25 ranging from £16,000 per annum to £30,000 per annum in areas such as Kensington & Westminster.

Our specialist telecoms team have extensive knowledge and manage a database of over 5,000 comparable telecom sites. This means that we can often achieve highly competitive rents at rent reviews, lease renewals and new site negotiations.

For further information contact:

Aaron Terrington 01858 411 276 or email here

Christopher Hicks 01858 411 202 or email here


For general information about our telecom services, click here

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