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Fixed Wireless Business

Fight the Towers That Be

Members of the ISP-Wireless list say that tower owners are as unreasonable with tenants as landlords anywhere. Members also share their creative responses to unreason.

[April 16, 2002]

On the ISP-Wireless list in April, DC queried,

"We took over a tower lease last April, and are now looking to upgrade the tower. We contacted the owners, who directed us to a management company. The company we took the contract over from never gave notice of transfer to the management company, and the company is now claiming default. So when we contacted them about the upgrade, they gave us insane rate increases based on feet of coax per month. The original contract was for $1,500 a year, and now they're asking for more than $5,000 a year with the upgrade. Is there anything I can do about this?"

A number of respondents suggested that there's not much to be done:

[CO commiserated] "We ran into the same issue with tower owners: once you try to change anything, they look at it as an opportunity to increase prices dramatically. Lesson learned: negotiate for the world from the outset, and work their prices down."

[GP agreed] "It sounds like you need to give up on the upgrade, leave everything on that tower just as it is, start negotiating, and plan to move off that tower at the end of the contract. They may become reasonable, but it's not likely."

[RP added] "Unless the existing deal automatically renews upon notice, or requires them to charge a competitive rate, you are probably out of luck. Since the management company's objective is to squeeze as much money out of the tower as possible, their position is not surprising (and at the rates you are paying, they've probably concluded that they wouldn't miss you if you left)."

Others recommended talking to the people who can influence the decisions on pricing:

[DH offered] "Get in touch with someone who can make a decision on the rates, such as the manager at the management company. Explain to them that your reason for adding to this tower is to try and support more customers in a larger area. Lay down the economics of it: how this technology has limited coverage area, and the population within that area does not make it possible to support such a large expense. I would also quote some of the other rates you have worked out with other tower management companies in the area. Explain to them that you wish to resolve this matter so that you may remain on the tower, but if an arrangement can not be made so that it is within your budget you will be forced to discontinue service in that area."

[TM agreed] "Tell them, 'Either you only up my rate by 10 percent, or I'm moving my stuff.' If they are smart, they will negotiate: it's lost money to them for fixed expenses they already have."

[RP added] "Another angle you might try is the local zoning board: if you are providing a valuable service to the public, they may be interested in knowing that the tower management company is putting that service at risk by charging excessive rental fees. It might be a worth a try, particularly if the board and the tower owner have a shaky relationship."

Still others suggested using this as a reminder of the importance of building your own:

[GF recalled] "We had the same thing happen to us, and we negotiated with a tower company right next door to the tower we were on, at a much better rate. We also went out and started looking for a good location for a tower: I'm still going to erect my own. It seems that, if we don't do that, we aren't really in control of our own destiny."

[MS agreed] "Find a place to put up your own tower nearby. Build it on a five to ten year lease with a one dollar buyout. It'll be less than your current cost, and you can tell the tower owners to stick it!"

—End