With an increase in competition, mobile operators must look for ways to reduce costs and maintain a competitive edge. The mobile operator’s biggest expenditure is typically mast site rent. Therefore, the two most common ways operators cut costs is by implementing rent reductions or collocating with other operators. While both options are valid solutions for the mobile operator, neither one is beneficial to telecom site landlords.
In the event of a rent reduction, the landlord would not lose their site’s rental income entirely, like in the case of a decommission or lease termination, but they do receive less rent. That said, sites are at increased risk of a lease termination when operators start to share mobile equipment. This is called “co-location” and since all operators are faced with reducing operational costs each year, this has become necessary. Unfortunately for landlords, collaboration between operator’s results in redundancy within the network and landlords with telecom sites that are no longer needed to provide coverage are likely to receive termination letters instead of rent payments.
Fortunately, APWireless, and its global investment group, has provided mobile operators with a third option that is beneficial not only to the operators themselves, but also to telecom site landlords. Operators across the globe, including Vodafone Ireland, are partnering with APWireless to offer “lease buyouts” to landlords. With a telecoms site lease buyout the landlord receives a large up-front sum of cash that can be invested in much more secure and profitable ways than their periodic site rent payment, and the operator also benefits by reducing costs associated with the necessity of dealing with hundreds of different landlords.