Many landowners who have leased land for a cell tower on their property are receiving letters from third party companies. These letters suggest to the landowner that due to wireless carrier consolidation and due to technology, that the cell tower lease may be terminated early. By selling the lease to one of these companies, the landowner averts the risk of early termination and can recieve a lump sum immediately.
What is important to note is that these companies would not be interested in buying the lease if they felt that there was a significant risk that the lease would, in fact, be terminated. The reality is that cell towers are going to be around for a long time and the leases will continue. That is not to say that your particular cell tower lease is not susceptible to termination, especially in light of carrier consolidation. Recently, wireless companies like AT&T and Cingular have merged. (Both AT&T and Cingular are trademarks of their respective companies). Estimates of how many duplicative sites will be terminated as a result of this merger range from 8,000 to 20,000 sites. While the exact number is unknown, some landowners will receive termination letters in the mail. It is possible to determine whether or not your particular site is susceptible to termination by reviewing the cell towers in your area.
The sale of the land leases for a lump sum is one way of averting this risk. Additionally, there are other reasons why an individual landowner might want to consider selling his cell tower lease rights. These reasons include a scenario where the landowner has plans to sell the underlying property in the next few years. Another scenario is where the lump sum payment can be used to extinguish existing high interest debt.
One area that every landowner contemplating selling a cell tower lease should be concerned with is the taxation of the transaction. It is imperative that you consult with your accountant regarding any offer and whether or not the payment is susceptible to capital gains treatment.
Lastly, there are industry experts available who can assist you in the determination of whether or not the sale of your lease asset is a sensible decision. Make sure that before you make a potentially costly decision, you consult with your accountant and industry experts.
Ken Schmidt is the owner of Steel in the Air, a cell tower consulting firm. Steel in the Air provides expert consultations on cell tower valuation, cell tower lease negotiations, lease buyouts, lease renegotiations and lease buyouts. Ken has been quoted on cell towers in the NY Times and numerous other publications.
SMS for Enterprise Messaging ? Value added servicesShort message service,... Read More
Well let's be honest some people just don't bother doing... Read More
You can now save quite a bit of money on... Read More
There are certain things people just shouldn't do with cell... Read More
The telephone is an extremely important piece of equipment and... Read More
Once upon a time, decisions about telephone service were easy... Read More
Reasons why someone would purchase a prepaid cellular phone.Prepaid cellular... Read More
Effectively everybody wants the hottest and best cheap cell phones... Read More
Staying connected with a cell phone has become a way... Read More
A lot of myths exist regarding as to whether the... Read More
Camera cell phones are sweeping the nation! In fact, long... Read More
There are just a few tips that will help you... Read More
Like millions of others, you may be the victim of... Read More
Cellular phones are an amazing modern convenience, but it can... Read More
Please be aware of this, as I have had these... Read More
It's a sad commentary on the way of the world... Read More
When people make international calls from their cell phones or... Read More
Cell phones were created with the purpose of facilitating communication... Read More
DECT stands for Digital Enhanced Cordless Telecommunications. Unlike analogue cordless... Read More
Until recently, when you thought of ringtones, you usually thought... Read More
Analogue is the process of taking an audio or video... Read More
These days the best long distance rates are not found... Read More
Camera cell phone ? benefits.Camera cell phone is a great... Read More
Take a random tween, age 8-12, place them in front... Read More
Where do I start? Always start with the essentials. If... Read More
Cell Phones have become a part and parcel of everybody's... Read More
It's hard to look back and imagine what we did... Read More
Buying a new business phone system is one of the... Read More
If you make a lot of long distance phone calls,... Read More
When a person moves, they need to hook up utilities.... Read More
What is SMS?SMS, also known as short messaging service, is... Read More
Each month, there are countless Americans who are faced with... Read More
It's a country that speaks through its numerous murals and... Read More
Most Asian cellular carriers mulling over 3G have chalked out... Read More
The newest technology is incredible and getting better. The newest... Read More
These days the best long distance rates are not found... Read More
You hear it in the media on a slow news... Read More
With new features being added to cellular phones at an... Read More
The Future Is FlexibleGone are the days when the only... Read More
Firstly, it's vital to point out that this short report... Read More
If you make a lot of long distance phone calls,... Read More
We have become a society that demands the most technologically... Read More
IntroductionEvery day millions of people use cellular phones over radio... Read More
Cellular phones are used by millions of people in the... Read More
One of the most critical infrastructures for restoring order to... Read More
As an organisation, the use of SMS might seem too... Read More
Trends in music come and go, but the crown jewel... Read More
Cordless phone systems offer many features and are ideal for... Read More
I noticed two interesting stories today. The first one on... Read More
Whether you're buying your first cell phone, upgrading to a... Read More
Cell phone accessories would include antennas, batteries, cases, faceplates, holsters,... Read More
With more offshore fishing boats taking customers further out into... Read More
Local Businesses have Been Slow to Capitalize on Search Engine... Read More
If your child uses a cell phone, take note. A... Read More
Busy entrepreneurs cannot be at their desk twenty four hours... Read More
Like millions of others, you may be the victim of... Read More
Cellular phone accessory list.There is a wide variety of products... Read More
International Terrorist and insurgents to detonate bombs to kill innocent... Read More
How many times have you heard of people spending hundreds... Read More
Cell phone safety is a topic widely debated around the... Read More
Cell phones are great for people on-the-go, but talking on... Read More
There's no greater way to win the hearts of consumers... Read More
The AARP, American Association of Retired Persons, ( ... Read More
Camera cell phone video - description.Camera cell phone video is... Read More
With cell phones quickly becoming an important part of our... Read More
PREPAID CELLULAR TIMEPrepaid Cellular Are A Smart Choice!There are huge... Read More
Mobile & Cell Phone |