Tower Leases

What to Know About the Impact of 5G on Cell Tower Leases

What to Know About the Impact of 5G on Cell Tower Leases

There’s been a lot of talk about the 5G cell service rollout. It was anticipated for a long time, and as things roll out around the country, people are gaining a better perspective on how it may impact the cell tower lease industry as a whole. Those who currently have cell tower leases likely have questions about how their renewal could be affected. Likewise, those who are new to the idea of leasing also want to know what to expect when it comes to 5G cell service.

We are still learning about the 5G cell service rollout and all the ways it can impact contracts, but one thing is for sure: it is something that has been hyped up way too much. There are numerous reasons why, as an industry cell tower lease expert, I feel this way, and I’m happy to share the ideas so that people get a feel for what is going on. There are things that people need to know about the impact that 5G may or may not have on cell tower leases.

For starters, we need to look at the publicity regarding the new technology. The publicity surrounding high-speed 5G has been focused on things like the autonomous vehicle industry. This is an industry that is getting a lot of attention, and we are likely to see more of it in the future. Additionally, 5G will be able to provide high-speed capabilities for such things as being able to download a movie or make file transfers in record time. While these things are getting a lot of publicity, they don’t have much impact on cell tower leases as a whole.

Next, to really grasp the fact that 5G isn’t likely going to have an impact on cell tower leases, it is essential to understand how the technology works. The 5G that offers high-speed capabilities has been created in a way that requires short-range antennas to be placed every 400 feet away. This will require thousands of new antennas within close proximity. They also need high radio frequency access to be able to provide the high speeds that they are capable of delivering. 

Here’s where it gets interesting, however, because the frequencies are not something that will penetrate through the walls. Conventional cell towers are still necessary because they are able to penetrate walls. Considering the technology has been designed in such a manner, traditional cell towers are still going to be in high demand. 

The larger cell towers are able to use a lower frequency, which allows them to penetrate the walls. They are able to provide service to people who are indoors, which is going to keep them in demand. The short-range antennas are not able to replace the cell towers. Once you understand the technology that the industry is using, then it all begins to make more sense.

This must be repeated again and again. The technology capabilities of the 5G networks will not end up replacing the conventional cell towers. They will work in conjunction with them, but they will not replace them. This means that cell tower leases will still be necessary, and the companies will need to maintain the relationships in order to provide their customers with optimal service.

It is important to remember that consumers don’t want their cell bills to keep going up. With this in mind, they are getting a watered-down version of what they believe is 5G. They may look at their smartphone and see that it says it’s using 5G. The truth is that they are not getting the actual 5G network that they had spent a few years hearing about. 

Once cell companies realized that it was not cost-effective to provide everyone with 5G technology, at the tune of $275 billion, they decided they needed a new route. They used clever marketing and a slight name change so that nobody would be the wiser. Consumers are actually getting 5G Lite, which is nothing more than what they were getting before, with mere slight modifications. 

Finally, we can’t deny the fact that over the years, cell tower leases have not fallen. This alone shows that the new technology is not posing a threat to the traditional tower leases. We would have already seen a drop in cell tower leases, setting the stage for changes nationwide. Without lease rates being lowered, there is no sign that is going to happen (and really no reason for it to happen).

Cell tower leases have been around for years and will continue to be. They will also continue to provide fair leasing rates for land owners who do their homework and don’t sell themselves short. Don’t let a company salesperson convince you that 5G is making them offer you a lower rate because it’s simply not true.

If you want to get the best rates for your cell tower lease, whether it is a new one or a renewal, reach out to us for a free consultation. We have helped many people over the last 12 years to receive better rates and terms, and we can help you, too. We know the industry well and can evaluate our contract in order to determine if you are getting a fair offer. Without someone by your side who understands the technology and industry well, you may be selling yourself short by signing a cell tower lease that is in the best interest of the cell tower company.