So what does the 2016 cell tower and cell site master look like? Small cells are coming, they will be thousands in the future. Verizon Wireless has launched a small battery that I call a beta test deployment for the entire US urban market. We have seen them in New York, New Jersey, Connecticut, Maryland, Virginia, California, and Texas, to name a few. The landlord offers rents as low as zero dollars [on the roof of a Verizon retail store], offering up to $900 in rent in a very difficult small community. But if you contact a small battery on your roof, then the monthly offer ranges from $300 to $600, not more.
Verizon, Sprint and AT&T are all talking about deploying tens of thousands of small communities in metropolitan areas. [T-Mobile looks more focused on DAS.] If there are a lot of small batteries near your tower, what happens to your rooftop cell or cell tower within 5 to 10 years? Our guess is as good as yours, but common sense requires the carrier to have sufficient leverage to return to the landlord for reasonable reasons to negotiate a rent reduction, or even make the website obsolete or even retire, if necessary, if the extra small unit can not only Used in conjunction with macro cell sites, it also handles enough voice and data traffic to make the site obsolete.
For example, a city like El Paso, Texas, can easily see Verizon installing 30 to 60 small cellular antennas to increase capacity and cover the gaps in the network. As early as 2008, my company was the first to publish an article, and we estimate that more than 100,000 new cell towers will need to be built in the United States in the next decade. It seems that our predictions are correct.
Airwave Management expects cell tower rental rates to remain stable over the next two to five years, and then as small cellular networks become saturated in urban markets, we should see rents paid to landlords begin to shrink.
In addition, we will see an increase in the convergence of cellular towers between major tower management companies [such as Crown Castle, American Tower and SBA Communications], which will integrate operator contracts at cellular tower locations close to each other. If you are a cellular tower owner with a hosted tower site and another competing tower that is located within a quarter of a mile or less of the same tower company, you might consider hedging you by selling cash flow before the competition. The risk landlord does the same thing, basically cutting your legs from underneath you and canceling any negotiation levers you have.
Looking at 2016 and 2017, in 2018 and beyond, I saw several major battery tower leasing integrators in trouble for the next 2-4 years, steadily breaking and being eliminated. Some of them may even return to their parents' field, and if they start treating the landlord without fairness and respect, they will browse our website blog. Many Volkswagen rental sales executives who launched BMW cars and sipped cocktails on the beach this year will soon become Wal-Mart's hospitality [if lucky]. Third-party cellular tower leasing companies add zero value to cell tower owners who sell their leases, and their sales scripts are marginal fraud, and they don't sell your website. Most of their sales representatives are strictly low-paid, have low responsibilities, and they will do anything and say anything to sell. Let the cell tower rental seller beware of 2016.
Orignal From: 2016 Cell Tower Leasing Forecast
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