Will The 5G Rollout Impact Cell Tower Lease Rates?

Will The 5G Rollout Impact Cell Tower Lease Rates

The cell tower lease industry is buzzing with talk about 5G and how it’s going to impact cell tower lease rates. It’s no surprise that landlords are worrying about their existing leases, as there are rumors that 5G will make cell towers obsolete. So what’s the true story? Is the 5G rollout a sign that the end of cell tower leases is near? Is it time to opt for a cell tower lease buyout before the entire industry collapses?

Continue reading to get answers to all these questions along with additional information!

The good news is that 5G will NOT make cell towers obsolete! The 5G rollout will just make newer cell towers more necessary, and landlords who are open to having a 5G cell tower on their properties can expect to be compensated handsomely for this.

Is It Time To Modernize Old Towers?

Like any other new technology, 5G requires plenty of equipment, and existing equipment will have to be modified while newer equipment is installed alongside it. If you can afford to upgrade your site, you won’t have a problem switching to 5G.

How Many More Cell Towers Will Be Required For 5G?

Currently, there are close to 350,000 cell sites spread across the US. With the rollout of 5G, you can expect a significant increase in the number of cell sites. Cell industry experts predict that the current number of cell sites will need to increase as much as 8x to provide extensive coverage under 5G.

That’s because 5G requires the “densification” of the cellular network. 5G is faster and stronger than 4G, but there are limitations. For example, an unobstructed 5G signal can span over 1,500 feet, but when many things obstructing the signal, it can only reach 300 feet in a densely populated area.

To ensure seamless 5G connectivity, cellular companies will have to set up a tower every hundred feet or so. But while the number of cell sites is set to increase, the size of cellular towers will get smaller as 5G technology uses MIMO (Multiple-Input, Multiple-Output) and beamforming antenna rays (which makes using the available spectrum more efficient).

To sum it up, the 5G rollout will require more cell towers, and contrary to popular belief, cell towers will not get obsolete. Instead, they will get smaller and might just bring less income to landlords in some cases. Still, the need for new towers will bring plenty of rental opportunities to existing and new landlords.

What’s Next For Current & Future Cell Tower Site Landlords?

If you’re a landlord with an existing lease, don’t give into the wild theories that cell towers will become obsolete due to 5G. Instead, use this opportunity to increase the value of your lease. And if you’re considering renting your site to a cellular company, this is an excellent time to do it.

With experts on your side, you can maximize the value of your cell tower lease. This is why you should contact Tower Genius. We’ll provide end-to-end support to make sure you land a great lease. And we can’t stress this point enough: We work only for property owners like you and NOT for the cell tower companies. We’ll provide you with unbiased advice. Connect with our team when you need an existing cell tower lease renewed or you’d like to land a new one.


Carriers & Tower Companies Have Their Hired Guns. Shouldn't You?

Negotiating a cell tower lease, trying to figure out what the correct cell tower rent value for your property needs to be, or evaluating the broad range of proposals and offers received by most cell site landlords in 2022 can be very confusing. Connect with Tower Genius or submit your info below, and we'll evaluate your situation, answer your questions and even make a few recommendations you may benefit from.

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