Renting Rooftops for 5G

Cellular carriers rent a lot of rooftop space. With the rollout of 5G cellular under way, carriers are adding 5G antenna systems to existing 4G cell sites in urban areas. They will also need to find many new sites to deliver 5G benefits. Carriers use some free-standing towers as well as a great many installations on suitably located rooftops. What kind of rent are they paying? What are the downsides of renting your rooftop?

By Ellen Koskinen-Dodgson

Ellen Koskinen-Dodgson is President and Managing Partner of TMC IT and Telecom Consulting Inc. She is an IT and Telecommunications Management Consultant, electrical engineer, author, speaker, media resource and Expert Witness.

Antenna Sites Demand

When we think of cell sites, we imagine towers alongside highways every few km. However, urban cells are often much smaller and the base stations much closer together. These extra sites tend to be installed on building rooftops. 5G cellular has created the need for many times the existing number of urban cell sites.

This means that the cellular companies will be looking for suitable buildings to house their new base stations.

Look at the drawing showing the number of current site licences in Metro Vancouver as far east as Port Coquitlam—over 2300 sites.

Lease Fees

The carriers sign multi-year lease agreements to be allowed to mount their antennae on an existing building. The ‘value’ of a site is determined by factors like:

• Quantity—the number of antennae that they want to install, usually in groups of 3
• ‘View’ - the antenna transmission coverage
• Location - rates vary across a metro area
• Competition—the scarcity or overabundance of other suitable options in the vicinity
• Power—can the building owner supply power, or better yet, generator backed power?
• Space for equipment, if required
• Access requirements—do they need 24x7 access?

While rates vary, a typical urban location might contract for $10,000+ per year for hosting a 3-antenna installation. We’ve seen $90,000 but the site checked all of the boxes.

Carriers like to share costs to economize and it is not unusual for one carrier to build the initial site and sub-let to others.

Savvy landlords either structure the prime agreement to account for this or require a separate agreement with each carrier.

Safety

There are often concerns over RF energy levels generated by cell sites, particularly when a concentration of antennae are installed together.

We advise on this for clients and have found instances where staff would have been exposed to unsafe levels if a proposal had been accepted.

Have a Plan

Cellular companies engage 3rd party agents to find potential sites in the optimal locations to support their network plans.

Be ready to be approached and decide if you’re interested and how you’ll:

• Establish the right price, considering all of the factors
• Word the contract for maximum flexibility and control
• Ensure RF safety
• Keep the installation from damaging your roof (think wind- loading)

There’s a fine line between getting properly paid what the deal is worth and killing the deal by demanding too much.

If you’d like to explore these ideas further or comment on this article, contact me at ellen.