In March 2017, the National First Responder Program was established to fund a nationwide wireless broadband network dedicated to first responders. This $46 billion initiative, funded by the Department of Commerce, was created in response to the limitations exposed during the 9/11 attacks, where a lack of reliable communication hindered emergency response efforts. AT&T was awarded the first phase of the contract, positioning them to benefit significantly from the program.
But how does this affect landlords of existing cell towers? The answer lies in a select few properties that have the right characteristics to capitalize on this government-funded initiative.
The key beneficiaries of the FirstNet program will be:
- First responders who will gain access to a dedicated, nationwide network for communication.
- AT&T, which stands to make significant profits from the government contract.
- Tower companies like SBA, Crown Castle, and ATC, which will see increased demand for their tower space as part of this expansion.
- Tower landlords who own properties with the necessary attributes to support the infrastructure for FirstNet, as these properties will be able to command higher rents from the right buyers.
However, most existing tower landlords will see little benefit, as they don’t own the towers themselves, and instead, only collect rent for the land where the towers are located.
For landlords who have negotiated revenue-sharing agreements in their contracts, the impact could be more substantial. If their site is selected as part of the FirstNet network, they could see an increase in their monthly income. For landlords with older lease terms, this presents an opportunity to renegotiate better terms. At CellWaves, we specialize in helping landlords adjust these agreements to maximize their income.
Reach out to us today to learn how we can help you take advantage of this opportunity and increase your earnings.
