Mobile Site Lease Terminations / HOME

Mobile Site Lease Terminations

Some landowners in the past, particularly with a CDMA network decommissioning a few years ago received letters or calls from the carrier representatives in regards to a termination of a lease. One variation of the carrier offer or discussion went like this:

  • Your site has been identified as one slated for termination.
  • We would like to terminate the lease in accordance with the terms of the lease, cease paying any rent for a period of time with an option to keep the equipment on the property and lease the space in the future at the existing rent.
  • If we are don't take up the option, we'll let you (the owner) have our equipment (tower, foundations, cabling, shelter and antenna mounts, etc.) so the site will be more attractive to other carriers.

Whilst the offer may or may not be terribly compelling to you, the underlying issue is far greater. They are in essence getting out of a make good obligation with this approach.

What they don't tell you is much more important.

  1. You will now be responsible for removing the tower or the equipment/shelter/foundation/services they leave behind and that has no tangible value. The removal of this equipment could cost upwards of $50,000.
  2. That if they do find another tenant- that there is nothing to stop them from charging double what you are currently getting and then paying you a mere 10% increase.
  3. If you have a good property or tower site, another carrier will find you anyway with or without their equipment. Recognise that when carriers go out to find new mobile site locations, the first thing they do is identify existing mobile sites- because town planning and the Australian Communications and Industry Forum (ACIF) Code require that carriers consider existing sites first and explain to council why, if they are constructing a new site, any existing site is not suitable for their use.

You may ask why we put this information directly on our web page instead of getting a consulting fee to assist you. Simple - we don't have the heart to charge you money to tell you that you are in fact losing your lease revenue and that on top of that a carrier is trying to stick you with the additional cost of removing their equipment.

Also we believe that with the recent merger of Hutchison and Vodafone, forming Vodafone Hutchison Australia (VHA) that you should be armed with this information, as well as being aware of possibilities or offers involving lease payouts. We believe that once their network planning is completed, a large number of existing leases will be terminated to assist with their strategy of reducing costs in the merged entity.

And we hope that should you have further issues with your mobile site leases in the future, that you will think of using our services.

Please feel free to drop us a line if you found this article helpful- we love to hear from our site's visitors. Just mention in the notes that you received a mobile site lease termination letter.