| Many landowners who have leased land for a cell | | | | mail. It is possible to determine whether or not |
| tower on their property are receiving letters from | | | | your particular site is susceptible to termination by |
| third party companies. These letters suggest to | | | | reviewing the cell towers in your area. |
| the landowner that due to wireless carrier | | | | The sale of the land leases for a lump sum is one |
| consolidation and due to technology, that the cell | | | | way of averting this risk. Additionally, there are |
| tower lease may be terminated early. By selling | | | | other reasons why an individual landowner might |
| the lease to one of these companies, the | | | | want to consider selling his cell tower lease rights. |
| landowner averts the risk of early termination and | | | | These reasons include a scenario where the |
| can recieve a lump sum immediately. | | | | landowner has plans to sell the underlying property |
| What is important to note is that these | | | | in the next few years. Another scenario is where |
| companies would not be interested in buying the | | | | the lump sum payment can be used to extinguish |
| lease if they felt that there was a significant risk | | | | existing high interest debt. |
| that the lease would, in fact, be terminated. The | | | | One area that every landowner contemplating |
| reality is that cell towers are going to be around | | | | selling a cell tower lease should be concerned with |
| for a long time and the leases will continue. That is | | | | is the taxation of the transaction. It is imperative |
| not to say that your particular cell tower lease is | | | | that you consult with your accountant regarding |
| not susceptible to termination, especially in light of | | | | any offer and whether or not the payment is |
| carrier consolidation. Recently, wireless companies | | | | susceptible to capital gains treatment. |
| like AT&T and Cingular have merged. (Both | | | | Lastly, there are industry experts available who |
| AT&T and Cingular are trademarks of their | | | | can assist you in the determination of whether or |
| respective companies). Estimates of how many | | | | not the sale of your lease asset is a sensible |
| duplicative sites will be terminated as a result of | | | | decision. Make sure that before you make a |
| this merger range from 8,000 to 20,000 sites. | | | | potentially costly decision, you consult with your |
| While the exact number is unknown, some | | | | accountant and industry experts. |
| landowners will receive termination letters in the | | | | |