Acquiring and owning a cell tower is a fairly straightforward procedure, if you know what the entailing rules and regulations are like. With rising demand for capacity, thanks to the mobile device market explosion, a cell tower acquisition could mean significant profits for people who allocate their resources properly and create strong associations with carriers. Knowing and comprehending the requirements of carriers is crucial to make a profit.
Generally, the operators define a rather exhaustive list of requirements that they would want a cell tower site to conform to. This clarity of thought exists because operators know if there is a vacuum in their network, network expansion is required and/or they are facing capacity problems.
Quite a lot of carriers are now keen on leasing towers, antennas and rooftops instead of owning them to meet their coverage requirements. For carriers, leasing is a lot more cost-effective compared to investing money into building their own cell site.
The reason why carriers don’t prefer owning cell tower sites is the move is not future-proof. In other words, the capital locked into the site cannot be used for anything else, such as buying additional radios to acquire more customers. Most carriers, therefore, believe owning a site isn’t the most strategic thing to do, which makes leasing a much better option.
For people owning vertical assets, this is a good opportunity. In potential tower sites, carriers look for four primary characteristics. Location is of primary importance. The tower should be located in a place that doesn’t have much cell coverage. Otherwise, the site won’t add much value to the carrier’s business.
The next aspect considered is the structure’s soundness and capacity. Also, the site should have good collateral value, which means it should have zero environmental issues and a clean title. The fourth most important attribute is the tenant’s creditworthiness. Maintenance responsibility must be considered as well. Often, the responsibility rests on the shoulders of both the tower tenant and owner.
The steel and concrete is usually taken care of by the owner. The carriers, on the other hand, are responsible for the electronics. The owner must maintain accessibility to the site, foundation and tower. The tenant takes care of the antennas and lines.
Zoning laws warrant consideration as well. At times, the zoning authorities could be a pain to deal with, which could determine how long it actually takes to buy a lease, install the tower and set the connection.
