Rate Variance on Tower Contracts

Realizing that monthly rate variance on tower contracts from the single digits to the tens of thousands monthly doesn’t provide a site owner with any real negotiating power. You can easily purchase a car for $100 to $100,000 depending on any number of factors obvious to most of the public with even a cursory understanding of what a car’s initial value is. The same isn’t exactly true for cell towers.

Towers are not all created equal, and careful research must yield a firm grasp on location, competition, range, etc. What you’ll find is that the physical pros and cons of your tower will only provide a 2 dimensional picture of what your site is worth.

The type of contract an owner is willing to agree to can impact a contract every bit as much as a the location. Understanding the legal expectations of would be tenants is crucial to maximizing your rate. Do not neglect research on industry contract standards while you do your due dilligence.