Cellular base station rental

D

Debtcollector

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Joined
Nov 21, 2007
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Location
Roodepoort
Guys,

I am looking for advice and negotiating ammo.
I bought a house with an existing cellular base station on the property some years ago.


The network provider in question has a long term (10 year) lease which is due for renewal. Based on information from taking to various contractors that did maintenance on this site over the years, I believe we are not being paid market related rent.

I mentioned this to the provider as part of the renewal negotiations. They believe (obviously) that the rental amount is fair and not is not willing to increase without a fight.

Does anyone have a similar setup on their property or know someone who does, and is willing to share their rental amount. I need ammo in my negotiations with the Red Dragon.

Thanks in advance!
 
What happens if you refuse to accept the current situation? Do they switch off the tower and leave it there or must they remove it?
 
All the equipment is theirs, so they have to remove and potentially relocate it close by to fill the coverage gap. The capital expenditure to they spent over the years to provision it with fiber etc am am pretty sure runs into the millions
 
Debtcollector said:
Guys,

I am looking for advice and negotiating ammo.
I bought a house with an existing cellular base station on the property some years ago.


The network provider in question has a long term (10 year) lease which is due for renewal. Based on information from taking to various contractors that did maintenance on this site over the years, I believe we are not being paid market related rent.

I mentioned this to the provider as part of the renewal negotiations. They believe (obviously) that the rental amount is fair and not is not willing to increase without a fight.

Does anyone have a similar setup on their property or know someone who does, and is willing to share their rental amount. I need ammo in my negotiations with the Red Dragon.

Thanks in advance!
Click to expand...
How much are they offering?
 
Debtcollector said:
Guys,

I am looking for advice and negotiating ammo.
I bought a house with an existing cellular base station on the property some years ago.


The network provider in question has a long term (10 year) lease which is due for renewal. Based on information from taking to various contractors that did maintenance on this site over the years, I believe we are not being paid market related rent.

I mentioned this to the provider as part of the renewal negotiations. They believe (obviously) that the rental amount is fair and not is not willing to increase without a fight.

Does anyone have a similar setup on their property or know someone who does, and is willing to share their rental amount. I need ammo in my negotiations with the Red Dragon.

Thanks in advance!
Click to expand...
Just tell them to pack it up if they don’t want to pay your prices.
 
Debtcollector said:
Around R2500pm
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That does seem on the low side, how much are property rentals in that area for a 3 bedroom home?
The cost for them to relocate would indicate they would have some motivation to pay a bit more, don’t be stupid though and ask something ridiculous.
 
I believe some people were offered about R10k per month on plots, and this was back in 2018/2019 so I assume it must have gone up with inflation by now
 
Segg said:
I believe some people were offered about R10k per month on plots, and this was back in 2018/2019 so I assume it must have gone up with inflation by now
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A lot of this was based on the value of the site's location, and this was when the MNOs didn't share towers. A lot has changed since.
 
TowerGuru said:
@Debtcollector you can PM me privately to discuss. just be aware you are not dealing with a mobile network operator anymore. no South African operator owns their towers anymore. you are dealing with a TowerCo now, there different rules and tactics.
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Does that one company own all the towers in South Africa?
If so why do MTN and Vodacom still endlessly moan about the costs to maintain towers - theft and loadshedding mitigation as if they are the ones doing the tower maintenance?
 
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R2500pm and all you get is COVID-19 from the 5G signal while increasing your chances in believing the earth if flat? No thanks.
 
airborne said:
Does that one company own all the towers in South Africa?
If so why do MTN and Vodacom still endlessly moan about the costs to maintain towers - theft and loadshedding mitigation as if they are the ones doing the tower maintenance?
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They usually vandalise the cabinets and batteries on the ground which is owned by the MNO unless MNOs opt for power as a service which attracts an extra fee.
 
beefymoocow said:
They usually vandalise the cabinets and batteries on the ground which is owned by the MNO unless MNOs opt for power as a service which attracts an extra fee.
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Say what, this company only owns the towers and nothing else?
I thought the point of selling the towers is for the MNO’s to focus just on the core business and not running around maintaining towers
 
airborne said:
Say what, this company only owns the towers and nothing else?
I thought the point of selling the towers is for the MNO’s to focus just on the core business and not running around maintaining towers
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It depends on the agreement, but from what I know, they mainly sell off the tower, main power feed (including generator if present) and the physical land (if they own it), the radio equipment and backup power (I.e. batteries) typically remains the MNO's.
 
The_MAC said:
It depends on the agreement, but from what I know, they mainly sell off the tower, main power feed (including generator if present) and the physical land (if they own it), the radio equipment and backup power (I.e. batteries) typically remains the MNO's.
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But then what’s the point if the main headache of tower ownership is maintenance of the radio and ancillary equipment and not the immovable assets?
 
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