AT&T Black Dot Offer - 2023 Version
By Christopher King and Christine Sloan Gillan
If you are a landlord under a telecommunications lease, then you have probably received a letter like this one from a company named BlackDot, LLC. On its website, BlackDot touts itself as a “recognized leader in lease management (aka lease optimization) services” and works for the telecom industry only. (Blackdot-llc.com) That means that its interests are aligned with the wireless carriers and not with yours. One way BlackDot can optimize a carrier’s telecommunications lease is to convince the landlord to sell its lease to BlackDot for pennies on a dollar – saving its customer (the carrier) thousands in dollars in rent that you, the landlord, would otherwise have received.
Don’t get us wrong - there is a time and a place for a landlord to sell a lease; however, wouldn’t you want someone in your corner (as opposed to the carrier’s corner) to help you determine whether now it is that time and place? We have decades of experience in negotiating lease transactions; that experience will help you and your legal and financial experts decide whether you can make more money by keeping your lease than by selling it.
Check our website: We only represent landlords under telecommunication leases and never the carriers: This levels the playing field for our landlord customers. We know that managing your telecommunications lease is not your primary business – that is why it is ours!
I received a purchase letter. What should I do?
Landlord Beware! Tales from a Consultant’s Desk
By Christine Sloan Gillan
I helped a customer negotiate a cell tower lease agreement with an option over 1 year ago. The lawyer for the cell tower tenant called me recently to say they needed to extend the option and asked if should he send the cell tower lease amendment to me or to the cell tower landlord? I asked why he did not simply exercise the option. He replied that they had neglected to timely exercise the option so that an amendment would be necessary to make the extension retroactive.
Thankfully my customer wanted me to review the amendment for him. During my review I noticed that there was a whole lot more going on than exercising the option retroactively. Namely, the cellular tenant had a survey conducted to define the leased premises and easement areas and had increased the size of both without asking the cell tower landlord to agree to the increase in size! The amendment included the new legal description from the survey, which had not even been supplied to the landlord! (Interestingly, the lease contemplated an as-built survey once the tower was constructed, which has not even happened yet, which would become an exhibit to the lease after the landlord had an opportunity to approve it.)
Also, the amendment not only exercised the option retroactively but added 2 more options!
I never cease to be amazed at what these guys try to get away with!
Dish Wireless Network Progress
Dish Network's new cellular offering - Dish Wireless - is going live in varying locations across the country. Deals have been made with many large tower companies, including American Tower, Crown Castle, SBA, Vertical Bridge, and others.
In June 2022, Dish Wireless announced they had met the goal to provide coverage to 20% of the U.S. population. Dish Wireless remains obligated under licensing agreements to provide coverage to 70% of the U.S. population by June 14, 2023.
New Cell Sites (AT&T, Verizon, T-Mobile, Dish Wireless)
By Brett Reall
As the wireless carriers rush to improve cellular coverage and roll out 5G technologies, we are seeing the creating of some new cell sites. Dish Wireless is by far building the most new sites as they are creating a new cellular network; however, we have also recently assisted our landlords in leasing space to Verizon, AT&T, T-Mobile, and a variety of goverment entities and small internet service providers. Tower companies such as American Tower, Crown Castle, SBA, Vertical Bridge, Atlas Towers, etc., are also building new towers as needs arise.
Many times salespeople for the wireless carriers make this all about rent; however this is only part of the story.
Read more: New Cell Sites (AT&T, Verizon, T-Mobile, Dish Wireless)
How to Make Upgrades Work - The Right Way!
By Aimee Blakeslee
Our customer, a private high school, leases space on light poles surrounding its athletic fields and between bleachers, to several wireless carriers. The school takes great care to maintain the fields and provide a safe place for students and guests to gather. Recently, the school was approached by one of those wireless carriers requesting to modify the equipment on the pole. Knowing the size and age of the pole, it seemed unlikely to us that the light poles could support the weight of the equipment the carrier was proposing. Typically, carriers choose a structural engineer to analyze the tower. Out of an abundance of concern for the school setting, we suggested that the school hire its own engineer for the analysis (but still require the wireless carrier to pay for it).
Landlord Beware! Tales from a Consultant’s Desk
By Christine Sloan Gillan
So today, on behalf of my customer/property owner, I reviewed an amendment to an easement agreement that was prepared by the grantee under the easement agreement who is one of the big 3 tower companies. The amendment is meant to memorialize my customer’s consent to increasing the size of the easement area under the easement agreement so that the grantee can add more telecommunications equipment to my customer’s rooftop. [Short lesson – an easement agreement is entered when the property owner/landlord decides to sell its cell tower lease to get one large lump sum payment in lieu of smaller monthly rent checks. In most instances, the leased premises under the cell tower lease becomes the “easement area” under the easement agreement.] While the amendment was meant to define the new easement area and to state the amount of the additional money that grantee will pay my customer in exchange for the enlarged easement area, the grantee decided to include additional provisions in the amendment that were never even discussed between the parties. Most alarming was a new provision in which the parties would agree that the grantee would relocate its equipment on the rooftop if my customer ever needed to make repairs to the rooftop. This new provision required my customer to provide the grantee with 6 months’ prior written notice of the maintenance event and required my customer to pay for all of grantee’s expenses in relocating its equipment. This provision was alarming because the underlying lease agreement already placed an obligation on the grantee to relocate in the event of a maintenance event; however, the underlying lease only required my customer to give the grantee 60 days’ prior written notice AND required the grantee to pay its own costs to relocate the equipment! Of course, I will suggest to my customer that it strike this new provision. I am glad that my customer hired us to review the easement amendment, otherwise it may have relinquished rights that it was not required to relinquish - in addition to incurring additional expense that it was not obligated to incur!
Cell Site Decommissioning Gotcha - Beware
In recent decommissioning cycles the cellular companies contacted their landlords with a unique proposal: They offer to remove their proprietary equipment, and leave other equipment that will 'make it easier for the property owner to attract a new tenant'. In some instances they even offer small amount of cash to leave this equipment.
With Sprint and T-Mobile now together, it is widely expected that several thousand cell sites will be decommissioned. We anticipate this same 'offer' being made to property owners. If you receive an offer from your cellular tenant, asking for permision to abandon their equipment on your property, there are some important factors to consider. Below are a couple: