Contemplating Selling Your Cell Tower Lease For A Lump Sum?

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.

---

How to Find the Best Cellular Phone Service Deal

Finding the best cellular phone service deal can seem as... Read More

Prevent Phone Monitoring with Digital Spread Spectrum

If you are using an analog cordless or cellular telephone,... Read More

Cell Phone Accessories - A Guide To Wireless Phone Accessories

Cell phone accessories are a big business on the commodities'... Read More

Samsung SGH-x427m Portable Digital Telephone

Switching cell phone providers allows consumers the opportunity to purchase... Read More

Call Russia Feeling Like a Royal Romanov

Get set to be greeted by the Russians, with a... Read More

We Have Compiled a List of Wireless Cell Phones General Cautions and Warnings

For the most part, wireless cell phones are safe. And... Read More

Cellular Ring Tones: The Latest Way To Say This is Me!

Ringtones, those digital sound bites that 'ring' through cell phones... Read More

Ringtones Explained - Monophonic, Polyphonic, or Whatever Phonic Rings Your Bell

Downloadable Ring tones - The Latest TrendWhat can you say... Read More

Should Your Teenage Have A Cellular Phone?

The time has come and your teenager has asked for... Read More

Senior Citizen Calling Tips

The AARP, American Association of Retired Persons, ( ... Read More

DECT - A Brief Explanation and How We Could Benefit From It

DECT stands for Digital Enhanced Cordless Telecommunications. Unlike analogue cordless... Read More

How to Find the Best Long Distance Rates

These days the best long distance rates are not found... Read More

Smartphones - Beyond Voice to Information and Entertainment

Investments in shares of wireless technology companies and wireless service... Read More

Why Your Business Should Consider SMS

As an organisation, the use of SMS might seem too... Read More

Cell Phone Cameras

A lot of myths exist regarding as to whether the... Read More

Satellite Phones: Essential for the Marine Industry

With more offshore fishing boats taking customers further out into... Read More

Mobile Content: An Expression of Individuality

Cell phones were created with the purpose of facilitating communication... Read More

New Tips For Shopping Cellular Services

The best money saving practice for buying new cellular phones... Read More

Protective Accessories For Your Cell Phone

Like most electronic devices, cell phones are remarkably fragile. Your... Read More

Prepaid Wireless: Is It Right For You?

Just about every leading mobile phone provider now offers some... Read More

Cell Phone in Forests

We are putting cell phone towers in the forests for... Read More

Camera Cell Phone

Camera cell phone ? benefits.Camera cell phone is a great... Read More

Mobile Devices Security

As this security solution is not such a great idea,... Read More

Spider-man 3 on Your Cellphone Anyone?

The titanic developments in new technology have radically changed the... Read More

Prepaid Cell Phones ? Are They Right For You

In today's world of communication technology, there's a lot out... Read More

Indian Mobile Infrastructure - To 3G or Not To 3G

To most overseas investors circa 1994, a first look at... Read More

Getting the Most of Your Cell Phone Batteries

Are you planning on buying a new phone in the... Read More

Why Mobile SMS/Text Messaging?

What is Mobile SMS/ Test Messaging?Mobile text Messaging, or Short... Read More

Cell Phone - Why Should I Upgrade

We hear from friends or just general chat by people... Read More

Cell Phone Security. How Vulnerable Are You?

There have been significant improvements made recently in cellular phone... Read More

Buying a Business Telephone System

When buying a new telephone system, it's absolutely vital to... Read More

Mobile Phone Unlocking

In the world today, you will but a phone, and... Read More

Donate Your Old Cellular Phone To Support A Worthy Cause

With new features being added to cellular phones at an... Read More