How much do the operators pay in rental for a base station site?

Saajid

Expert Member
Joined
Aug 8, 2008
Messages
4,557
So a friend has asked me to do some investigations.

One of the big 3 operators has approached him to put up a base station on his property. They require a 9x9m piece of vacant land, of which he has plenty.

His property is slightly on the outskirts of a big Johannesburg suburb, between 2 neighbouring suburbs and not far from a huge low cost housing property development that will be coming up in the next few years.

The operator will sign a 10 year lease with a 10% annual increase. What rates should he expect to receive from the operator, and how should he go about negotiating a better rate, that is market related?

I've heard of the operators paying upwards of R15k to R20k per month for a site, but these tend to be in more densely populated areas, or in the center of a town. The operator is offering him far less. I don't think he wants to be greedy and overcharge, but just wants to get paid rates that are market-related.

Any advice or indications of what to ask for, and how to go about the negotiations are welcome.
 

Grubscrew

Expert Member
Joined
Sep 15, 2008
Messages
2,985
Every situation is different there is no set rate. Also if you asking too much they will just go to your neighbour. Remember they usually have more than one possible site they can use, so they will go with the guy that will offer the best deal.
 

Terencek

Expert Member
Joined
Jul 14, 2006
Messages
1,250
I understand a near-neighbour of ours was offered R2K pm to host a Cell C tower. Cannot state this as gospel however.
 

sajunky

Honorary Master
Joined
Nov 1, 2010
Messages
13,124
Use your own wisdom. Just add a clause to the agreement, that in the case of sub-renting tower to third-parties, agreement must be renewed.
 
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