For the broadcaster, the cellular industry has dramatically changed the tower rental business. Many cellular operators prefer to build their own towers. This is good for broadcasters because it may offer them more suitable locations to find rental space for their own facilities. Conversely, in locales where there are restrictions on additional towers, cellular operators may turn to broadcasters to rent space on their existing towers as cellular operations expand. The availability of emergency power, a common feature at broadcast and cellular sites, makes either facility even more attractive.
Cellular operators make good tenants.
Because of the large capital investment required, most cellular operators have stable business operations, and are used to paying their bills on time. Although each area typically has only two cellular operators, the emerging PCS industry may support perhaps six operators in a specific region. Considering that a fully built-out PCS system will require a site every two miles, the demand for tower space is simply staggering. Tower rental is an alternate revenue stream that every broadcaster should fully investigate. Some caveats Contract law is an exacting field.