Cell tower rent renegotiations and decommissions have always been the not-talked-about part of cell tower ownership. With the recent T-Mobile/ Sprint merger, DISH build out, and conversion to 5G technologies, everything is now on the table. The need/desire for telecoms to cut overhead and manage expenses is driving the action.

One of the Sprint/T-Mobile merger items that caught the attention of many smart cell site owners was the fact that T-Mobile post-merger plans included the decommissioning of around 35,000 T-Mobile or Sprint cellular sites as a cost-savings measure. Then the Department of Justice required that as part of the merger agreement, T-Mobile must offer at least 20,000 of their to-be decommissioned sites to DISH, who will determine if they want to use these as a part of their “nationwide” network buildout. Up until now, this has not had a significant effect on cell site values. But the merger came at a tremendous cost. New networks have major expenses, and, soon, there may be pressure on telecom tenants to decommission unneeded sites or renegotiate contracts with reduced rents. The competition among landlords for tenants may negatively impact your lease, regardless of who the tenant is.

The effect of the expansion of 5G service on existing cell sites agreements is more difficult to determine. It’s a given that some existing sites will no longer be needed, and many sites will need to be upgraded with new equipment. These new and revised leases present great challenges and opportunities for cell site owners.