Fibertower Lease Agreement
If you are looking for FiberTower’s website, please visit www.fibertower.com.
Cell Tower Attorney is a law firm that assists landowners approached by FiberTower with negotiating the terms and conditions of a cell tower agreement. Fibertower is a registered trademark of FiberTower Corporation. We are not affiliated in any way with FiberTower.
FiberTower provides what are known as wireless backhaul services. Wireless backhaul is a replacement for the traditional means of moving phone calls from cell towers and cell sites to the ground based landline systems. In summary, a call from your cell phone is routed from the nearest cell site through the landline phone system through a switch to its destination, whether to a landline or to another cell phone through another cell tower. Every cell site (whether on a tower or on a rooftop or a water tower) is connected to the landline system. FiberTower seeks to replace the use of copper wiring from each cell site to the landline network using microwave transmissions.
In certain instances, FiberTower does not need to negotiate a lease with the landowner; rather, they simply install their equipment on the leased premises of the existing cell site. In other instances, FiberTower needs the consent of the landowner or additional space on the property for its equipment. Unfortunately, FiberTower offers substantially lower monthly rents when compared to traditional wireless carriers and most landowners are unfamiliar with the market rates for such services. To complicate this further, most landowners are unfamiliar with FiberTower’s technology and really don’t understand how they intend to use the property. If you are looking for information regarding the appropriate monthly rental amount, our related company, Steel in the Air, can assist you with negotiating a fair market rent for a FiberTower lease.
If you have been approached by a representative of FiberTower who is interested in leasing your property, you should have received a lease proposal. The standard FiberTower lease typically includes the following provisions:
- Lease of Premises and Use — FiberTower typically leases 4 square feet of the landowner’s property for the purpose of operating its network, specifically, connecting to a fiber service provider for optical and electrical transport services, including installation of cable from the public right of way to connect to its equipment.
- Term — The initial term of the FiberTower lease is 5 years commencing on the date that FiberTower starts construction of its equipment. The FiberTower lease automatically renews for 5 additional five year terms unless FiberTower provides written notice of its intent not to renew.
- Rent — FiberTower typically pays a monthly rent for the leased premises which includes a minimum number of antennas, equipment and cables. In certain instances, FiberTower may pay additional rent for the right to place additional antennas or equipment.
- Approvals and Termination — the landowner agrees to cooperate with FiberTower so that FiberTower may file all necessary zoning applications. The lease may be terminated by either party on 30 days notice if the other party is in default beyond the applicable notice and grace period. In addition, FiberTower may terminate the lease if it is unable to obtain any necessary government approvals.
- Interference — Fibertower agrees not to interfere with existing users of the landowner’s property and the landowner agrees not to lease the property to any other party if such party will interfere with FiberTower. The parties agree to promptly eliminate any such interference.
- Indemnification — The parties agree to indemnify, defend and hold harmless the other party for any damages that arise from the other’s use of the property, except to the extent such damage is caused by the gross negligence or willful misconduct of the non-indemnified party.
- Insurance — FiberTower agrees to maintain public liability insurance and an insurance certificate naming the landowner as an additional insured.
- Access — the FiberTower lease provides for 24 hours, 7 days a week access to the property for the installation, maintenance and operation of its equipment.
- Removal — Upon termination of the lease, FiberTower will remove its equipment and all footings, foundation and concrete to a depth of one foot below grade.
- Utilities — FiberTower is responsible for paying an estimated monthly amount for utilities it uses at the property.
- Default — the FiberTower lease provides that FiberTower is in default if it fails to pay rent for more than 15 days after written notice or if its fails to perform any other obligation for more than 30 days after written notice. It also provides that the landowner is in default if it fails to perform any of its obligations for more than 30 days after written notice.
- Assignment/Sublease — FiberTower may not assign the lease or sublease the premises without the prior written consent of the landowner, however, it may assign the lease, without the consent of the landowner, to its parent, subsidiary or affiliate or any entity that acquires 51% or more of its assets. The landowner may assign the lease subject to the assignee assuming all of the landowner’s obligations under the FiberTower lease.
- Relocation — the landowner is not allowed to relocate FiberTower’s equipment without FiberTower’s prior written consent and such relocation shall be at the landowner’s expense.
Based on the above summary, the FiberTower Lease imposes many requirements on a landowner that need to be carefully considered before entering into such an Agreement. Cell Tower Attorney has experience in negotiating leases with FiberTower and revising many provisions, including the ones listed above, so that the landowner maximizes his return on his property while being properly protected from potential liability.
If you have been approached, please consider contacting us for assistance in your lease negotiation.
*** If you are looking for FiberTower's website, please visit www.FiberTower.com. We are not affiliated in any way with FiberTower.***
