Are states going to opt-out of AT&T’s FirstNet?

Now that the Rivada court challenge appears to be resolved, many pundits and experts expect AT&T to be awarded the FirstNet contract.  Once the FirstNet contract is awarded to AT&T (only remaining qualified bidder), AT&T has 180 days to prepare state specific FirstNet plans.  States then have 90 days to decide to opt-in or out.   If they opt-out of FirstNet, states have the option of building their own public safety networks to FirstNet standards.  Some states have already issued RFPs and in one case, awarded the state public safety network to Rivada.  This does not mean that the states will opt-out- just that they are evaluating their options.  Should they choose to opt-out, they have 180 days to issue an RFP or provide FirstNet with a plan for review.  To the extent that a state opt-out, AT&T will not get spectrum or funds in that state.  

We prepared this map that represents the states that have issued, awarded, or announced that they plan to issue an RFP.

Map of states with RFPs for FirstNet state networks
states that may opt-out of the nationwide FirstNet

Small Cells Per State in United States

Map showing small cells per state across US
Map showing the distribution of small cells in US based upon 100,000 total

To show the impact of 100,000 small cells being deployed in the US over the next few years, we looked at total population per state and created this map which assumes that small cell deployment will follow population.   In other words, a state's relative population is used as a proxy for small cell need in this map.   In reality, there are many more factors which will influence the number of small cells in each state.

These include:  

  1. Population density
  2. Difficulty of procuring permits for macrocells
  3. Spectrum shortfalls in specific markets
  4. Competitive Pressure between Carriers
  5. Topography

Thus, this map is only intended as a rough estimate of small cells to be deployed by state.  Where it gets interesting is when you assume that the actual number of small cells could be 1,000,000.  Previous FCC Chair Tom Wheeler indicated in a 2016 speech that the number of small cells deployed "may reach into the millions".   Multiply the numbers in the map by 10 to see what we mean.  The state of California alone could see 120,000 small cells with most in urban and suburban areas.  That is a lot of small cells. 

 

Everest Infrastructure Partners: The Phoenix of Tristar Investors?

Illustration of Phoenix Rising from AshesHISTORY OF TRISTAR INVESTORS

Back in 2008-2013, a company called Tristar Investors was attempting to acquire ground leases under American Tower Corporation (AMT) and Crown Castle (CCI) cell towers. They had some success acquiring the leases using a unique acquisition model where they would "buy out" the tower ground lease by paying the landowner an additional annual or monthly payment above and beyond their current rent through the expiration of the cell tower lease. Tristar would then offer the landowner 50% of any revenue from the operation of the tower after the expiration of the lease. The marketing pitch? At expiration, Tristar assumes ownership of the tower and the landowner becomes a "partner" in the revenue generated on the tower. This was an effective pitch to landowners, and our best guess is that Tristar acquired 300-500 leases under valuable multi-carrier towers.   

In 2013, Tristar settled litigation with American Tower and after that, they shut down. We surmise that Tristar agreed to non-compete and non-solicitation language in their agreements that barred them from purchasing leases from under American Tower. We also believe that Tristar executives previously agreed to language with Crown Castle that provided for similar restrictions on acquiring Crown Castle leases.  

THE RISE OF EVEREST INFRASTRUCTURE PARTNERS

Flash forward to 2017 and it appears that these non-compete/non-solicitation agreements have expired, because a landlord of ours with a multi-carrier American Tower Corporation tower received a purchase offer from a company named Everest Infrastructure Partners that looks suspiciously like previous offers from Tristar Investors. Upon further review of the signatory and the agent who contacted our property owner, it appears that someone has gotten the old Tristar team together and is now attempting to acquire leases under the Everest Infrastructure Partners name. Both the agent and signatory list previous positions with Tristar in their LinkedIn profiles .  

Here is what the offer from Everest looks like: 

Everest Infrastructure Partners, Inc. (“Everest”) is pleased to present to you (“Owner”) this offer letter (“Offer”) for Everest to acquire an easement to the cell tower real estate you own at _____________________(“Property”).    

1. Current Lease.  The Offer is based on the following terms of the current lease for the cell tower operated on the Property:

Current Rent:   $xxx.00 /month    Final Lease Expiration: xx/xx/xx

2. Payment to Owner.  Everest will pay to Owner the sum of xxxxx Thousand and No/100 Dollars ($xx,000.00) per year until the expiration of the Current Lease.  Owner will keep all rents generated by the Current Lease until expiration. Additionally, commencing at the expiration of the Current Lease, Everest shall thereafter pay to Owner ongoing payments equal to Fifty Percent (50%) of the rental revenues received by Everest from any lessee(s) of the Property.

 3. Easement. In exchange for the consideration above, Everest will be granted an easement to the property. The easement area shall be the portion of the Property currently leased for wireless telecom use, and shall include access and utility easements thereto. 

RECOMMENDATIONS FOR CELL TOWER LEASEHOLDERS

There are a few concerns that landowners should have about this offer. First, a landowner who receives this offer should clarify with Everest whether they intend to take over the ownership of the tower at expiration, whether they plan to sell the lease back to the tower company, or whether they expect to renegotiate the lease with the tower company and take 50% of the rent for doing so.   

In the first scenario, these types of offers can be attractive to landowners. Our clients who previously sold to Tristar were generally better off for doing so.  

In the second scenario, we believe the landowner is better off just selling or renegotiating the lease with the tower company. Otherwise, at expiration, if Everest sells the lease to the tower company, the tower company could just decide to offer below market lease terms and the landowner would get the very short end of the deal.   

In the third scenario, we also believe that the landowner is better served by selling to the tower company or renegotiating the lease with the tower company. Unless the "buyout" amount exceeds the present value of 50% of future rent from the extended tower lease, the landowner would be better off just keeping the lease and negotiating its own extension or sale with the tower company.   

Accordingly, if you receive an offer from Everest, we recommend confirming with them whether they intend to take over the tower at expiration. If not, we suggest asking Everest about their explicit intentions with the lease. In either of the latter two scenarios, we recommend contacting us so that we can help you determine the value of the lease and explain fully all of your options – not just those presented by Everest.   

Please note that we are not affiliated with Everest. Everest Infrastructure Partners may be a registered trademark. If you found this post while searching for Everest Infrastructure Partners, please direct your browser to www.everestinfrastructure.com.   

Immaculate Cellular Reception: How Cell Phones Work at the Big Game

Superbowl Cell Phone Use Infographic
How your cell phone connects at the Big Game

 

Article-images-slice_02The Super Bowl LI fans streaming into NRG Stadium in Space City expect to witness a game-winning touchdown that will go viral. However, seeing it once won’t be good enough – not in this retweet world. If you turn back the calendar to July 1969, there was a different type of touchdown trending. The brains at mission control in Houston’s Johnson Space Center conversed with men on the moon nearly 239,000 miles away via a prehistoric wireless system. According to NASA, half a billion people huddled around television sets to watch a grainy live stream video of the space travelers walk on the lunar surface as if it was an end zone. They weren’t just pioneers in space exploration; they were perhaps the first to engage in genuine social media.Article-images-slice_05Not much has changed since then about a person’s innate desire to chat and share an experience while at a really cool place. And humans, especially cheering Falcons and Patriots fans on February 5th, will share nearly 20 Terabytes of Snapchats, Tweets, Instagram images, Facebook posts, and texts before, during, and after the Big Game.

HO-HUM. ANOTHER RECORD DAY FOR DATA USAGE.

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Tethered to their wireless devices, more than 72,000 fans inside NRG Stadium, along with several thousand enthusiastic tailgaters around the venue, are expected to surpass the nearly history-making 9 terabytes of cellular data consumed at the 2016 Super Bowl on the Levi Stadium Distributed Antenna System. They devoured another 10.1 terabytes of data while using the free stadium WIFI network. To satisfy the communication needs of this magnitude, the nation’s four major wireless carriers have been dissecting digital data since Broncos coach Kubiak was showering in Gatorade.
Before you get too excited about data use records being broken year after year at large sporting events, remember that it takes both a strong network and insatiable demand to set the record. As manufacturers continue to make dramatic advancements in their devices and wireless companies work feverishly to increase network capacity, the customer feels more empowered and demands greater amounts of data at events like these. And the nation’s carriers have no choice but to provide lightning-fast networks that will enhance the user’s social media experience. This vicious cycle will continue to generate new data records year after year which the wireless companies will not hesitate to crow about.

 

FANS EXPECT FAST, SEAMLESS CONNECTIVITY. 

WIRELESS CARRIERS MAKE SURE IT IS AVAILABLE.

Why be at the most coveted sporting event of the year if you can’t remind people that you are there? It’s a high-stakes day not just for the referees making the calls; if the carriers fail to transmit selfies, videos, Facebook likes, and Tweets faster than the speed of light, the natives will grow restless. Not to mention Facebook Live and other live video feeds, the gargantuan data-grabbers.  This could translate into a major marketing blunder, not only in the eyes of the customers but also their competitors. For them, the data relay race on Super Bowl Sunday is their wireless Super Bowl and they don’t want to be forced into taking a defensive position.

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So how do the wireless carrier masterminds orchestrate this stellar technological achievement without a hitch? Collaboration, teamwork, along with lots of data and mega bucks. Wireless carriers like AT&T, Sprint, T-Mobile, and Verizon have each invested anywhere from $10 million to $100 million to improve their cellular infrastructure. From a revenue perspective, it may not make sense to invest this much capital into their networks for this single event – but they will. Even if they could opt-out, the providers place immense value on their customers’ loyalty; the elite big four dread being roasted on social media for days if disgruntled fans complain of stuttering videos and mention them by name. So to prevent self-inflicted PR damage, the carriers will be on site to protect their brand and ensure customers are connected and content.

 

HOW THEY DO IT

For over a year, the City of Houston has been responding to requests and issuing building permits to the carriers authorizing the installation of hundreds of large and small cell sites, cell towers, temporary cell on wheels, distributed antenna systems (DAS) antennas and antenna equipment in preauthorized locations. Each site type has a very specific objective in the network. If all goes as planned, they will perform flawlessly, much to the delight of fans, carriers, and citizens of the host city. How does it all work? The image below shows how these various components interact to form what the industry refers to as a heterogeneous network or Het-Net.

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To accommodate the data demands of outdoor users, a complex interwoven network of large (macrocell) and smaller cellular network sites (small cells and DAS) have been strategically placed along the routes leading to NRG. They have also been staged at various other venues in Greater Houston in anticipation of thousands who will be anxious to join friends and family on social media. To guarantee their jubilation won’t be short-lived, carriers have rounded up just under 100 COWS, cell sites on wheels. These trailer trucks or mobile cell sites are equipped with powerful antennas and radio transceivers to generate extra juice for the cheering fans. The data-hungry partiers who thirst for greater capacity may never even notice the massive, elaborate infrastructure that was designed especially for them. However, they will appreciate it, nonetheless. After the event, the wireless companies can simply pack up this extra capacity and move it to the next event.

As motorists approach the stadium, they are in a steady lane of traffic on highways and roadways to the big event. Along their route, macrocells on towers, rooftops, and other structures are the first to transmit and receive cell phone signals to and from mobile phones. And inevitably the traffic gets congested, which naturally means more people are in the same concentrated area using their wireless devices. This is a call to action for small cell sites; they are deployed to “densify” or increase the capacity of the overall network. A small cell is an individual cell site that is smaller in size, power and coverage radius. The macrocells, small cells, and COWS are part of an incredibly smart network; engineers are able to adjust the capacity according to the density of users. With a click of a mouse, they can redirect multiple smart antennas on multiple sites to refocus on areas of congestion.   

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As the countdown clock ticks closer to kick-off, festive fans begin to arrive at the stadium. Some may congregate at a pregame event or join tailgaters. Still, others may gather with friends and family at a hotel or nearby park. Outside the stadium, wireless carriers have installed a “Het-Net” of rooftop and tower macrocells, small cells, COWS, and powerful Outdoor Distributed Antenna Systems. This infrastructure will provide the capacity boost for the fans. Wherever the fans are, the system must be ready and able to handle the migration and respond with precise accuracy to any media request they are making. By layering small cells and DAS nodes under the macrocells, the wireless carriers make sure that you have coverage wherever you go and capacity whenever you need it.


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A BIRD’S EYE VIEW OF THE CELLULAR INFRASTRUCTURE NEAR THE STADIUM

So how and where does this infrastructure get deployed? Steel in the Air, Inc. examined its proprietary cell tower/infrastructure database to determine the amount and location of wireless infrastructure in the area of NRG Stadium.

Below is a map showing the wireless infrastructure.

NRG Stadium Cell Tower Map copy

graphIf you examine the map, you will see that the towers and rooftop sites are taller and farther apart and provide wider area coverage over the surrounding areas. Underlying the towers and rooftop macrocells are Distributed Antenna System nodes and small cells (both of which are labeled as small cells for simplicity). While this map only includes the area surrounding NRG stadium, similar tower and small cell development permeates all of Houston. To the right is a chart showing how many cell sites are within 2 miles of the Stadium and our estimate of all sites in the Houston metropolitan area.

 

IT DOESN’T END ONCE YOU ENTER THE STADIUM

Outdoors, mobile devices are connected to the cellular network. But once inside the stadium, it’s a whole new ballgame as your device connects to the stadium’s WiFi. And this is where the focus has been intensified. Stadiums built in recent years are constructed with reinforced concrete columns, tons of steel and energy-efficient windows. They, like the 1.9 million square foot NRG Stadium, are nearly impenetrable fortresses daring any wireless signal to enter. However, the nation’s wireless providers are up to the challenge of providing enough capacity to appease approximately 100,000 individuals. Getting enough fiber and bandwidth past all the barriers to end users in the centermost parts of the venue presents an even bigger obstacle. It requires installing nearly 1,300 access points throughout the venue, even placing them underneath seats. That is one access point for every 61 one fans expected to attend the game. Saturating the stadium with WiFi should prevent guests from enduring the frustration of being in a wireless dead zone. For the stadium owner, it gives them the ability to provide catered information and services to their attendees. More importantly to the wireless carriers, it saves them from having to build out a more robust (read expensive) Distributed Antenna System. In most cases, WiFi is cheaper to deploy than cellular connectivity.

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The providers have already spent lavish amounts of money to obtain access – simply for the unique right to be there. Wireless Week states that Verizon, the official wireless provider of the Houston Texans and NRG’s major tenant, has invested $40 million on its Distributed Antenna System.

The return on the investment? According to Verizon, fans will enjoy a capacity increase of 450%. {This link has a nice photo.} AT&T matched that amount, and T-Mobile and Sprint also made significant investments to boost LTE capacity. Their goal is to provide seamless WiFi connectivity for the users, so they won’t use their normal data plans. Otherwise, there would be a data overload.
According to GeekWire, users at the golden anniversary Super Bowl last year consumed 63% more data over the WiFi network than at the prior year. And since records are made to be broken, the stats for 2017 may well eclipse Levi’s Stadium’s 10 TB record.

 

GAME PLAN
TO HANDLE THE PEAKS AND VALLEYS

Meanwhile, at the command center, hundreds of radio frequency engineers and technicians from all four wireless carriers and from the stadiums WiFi vendor will be monitoring network performance. Armed with data and experience, they can project the peak and valley data usage locations in and around NRG. And they dare not forget that many people will bring more than one device. Even before the coin toss, the nation’s major providers will have their eagle-eyes trained on computer screens. Data requests will be rising, as well as the rhythm of their hearts. Everything in and around this day is built and designed for peak usage; it is the cornerstone. It is those critical levels when a network is most vulnerable. The first moonwalker, Neil Armstrong, reflecting back on the lunar landing remarked,"…there were just a thousand things to worry about." The carriers know the feeling.
There’s nothing like a touchdown to bring fans to their feet. Simultaneously, they are seizing data as fast as they can to capture the event and send their Oscar-worthy video to family and friends. As they post either their joy or disgust on Facebook, watch an instant replay on their device, or snap celebratory selfies, those at the command center plan to keep boosting network performance. The halftime festivities are also times of intense peaks. If fans aren’t watching the activities on the field, they are active on social media, either in their seats or as they wait in a long line for refreshments of relief.

The carriers will start to breathe a collective sigh of relief after the champions hoist the Vince Lombardi Trophy, but their work isn’t quite finished. Departing fans will still be active on social media. Geekwire stated that at the 2016 Super Bowl, Facebook was the most active social app. And to think that when Houston last hosted the Super Bowl in 2004, Facebook was still three days away from being launched. And Twitter didn’t earn its wings until 2006.Article-images-slice_40

One major, continuous event during the week-long Super Bowl festivities is the NFL Experience. This massive interactive display provided by the National Football League is located a few miles away at the cavernous George R. Brown Convention Center. One of the main attractions will be personalized digital photos. Again, the four major providers have revved up WiFi’s infrastructure to provide enough capacity for thousands of attendees to share their adventures on social media. The NFL Experience is designed to allow fans to enjoy an exhilarating atmosphere with others who share the passion for football. They can even be dazzled by viewing the prized Lombardi Trophy on display. Those who lack a ticket to the Super Bowl, may use their imaginations to transport them to a front row seat inside NRG.
Once the NFL has exited NRG stage left, a steady stream of other events will converge on the stadium. So the millions of dollars invested by the providers will benefit the millions who will visit the venue and the surrounding area shortly. In fact, the Houston Livestock Show & Rodeo will begin setting up for the world’s largest rodeo event, running March 7–26. The average daily attendance is 2 million, all of whom will salute Verizon, T-Mobile, Sprint and AT&T for enriching their experiences, which they will no doubt, share on social media.

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Rooftop Small Cell in Syracuse, NY (Ken’s Hometown)

Despite living here for over a year now, I just came across my first small cell in the City of Syracuse.   The site and equipment are located on and adjacent to the rooftop of Rosie’s Bar & Grill just west of Syracuse.

Small Cell Location

Below is a photo showing the rooftop small cell- which includes a small antenna mount along with an omni type antenna.  Based on what we have seen in proposed Verizon rooftop small cell plans for other clients- this appears to be a Verizon installation.

Small Cell Photo
Rooftop Verizon Small Cell

The Verizon small cell connects to an approximately 4′ tall equipment cabinet mounted on a steel platform on the side of the building.    Verizon has likely entered into a small cell lease agreement with Rosie’s for the placement of the equipment.  They typically offer $250/month to $300/mo. for this type of lease although like anything that is negotiable.   If Verizon or another small cell provider contacts you for a similar proposal- give us a call at (877) 428-6937 or contact us.

Small Cell EquipmentSmall Cell Equipment

 

 

A Tale of Two Small Cell Providers – Part Two

Last year in April, we wrote about how Crown Castle and Mobilitie respectively approached the City of Orlando regarding small cells.    In that post, we described how each company approached the application process and why the City approved the Crown Castle small cells while it determined that the Mobilitie applications were incomplete.

We recently came across some data from Montgomery County, MD.   If you have followed wireless siting news, there have been a number of stories about Montgomery County and the opposition for small cells from NIMFYs.

Interestingly, the data shows a similar story happening in Montgomery County as that which happened in the City of Orlando.  Of the 171 small cell or DAS installations submitted by Crown Castle, 81 have been approved or recommended for approval.   90 are under review currently.   Of these 171 poles proposed by Crown, only 20 are new poles as opposed to installations on existing utility structures.   The average height of all Crown poles/antennas is 28 feet.   Another interesting statistic regarding the Crown DAS poles is that 26 of them have two carriers coming out of the ground.   Almost all include Verizon- but some include T-Mobile.

Mobilitie has taken a different tact and not surprisingly, NONE of the 141 small cells that Mobilitie has applied for have been recommended for approval as of the date of the file we reviewed which appears to be October of last year.   The average height of the Mobilitie poles- 66 feet.   The number of new poles vs attachments to existing poles is 117 to 24 respectively.

Lastly, Verizon has submitted 15 small cell applications of their own.

Below is a map we created in Google Maps showing the various DAS and small cell providers and the submitted infrastructure.   You can click on the individual points for further details on who is where and whether the sites have been approved.  (here is a link to the map itself in Google Maps)

 

Verizon Backup Fiber Requests: How Landowners Should Respond.

Verizon's proposed fiber route on client's property.
Verizon’s proposed fiber route on client’s property.

We have been starting to see requests being made to our landowner clients where Verizon is seeking to get consent to add utilities.  Initially, the pitch is that Verizon needs additional fiber for advanced technologies.   When asked why they need a new utility easement across the property and why they can’t use the existing utility easement, Verizon indicates that they need backup fiber.  In short, they don’t want the backup fiber routed along the existing utility easement because it could be cut at the same time as the primary fiber.

The issue this creates for a landowner is that there are now additional easements run across the property that could inhibit future development of the property.   If every wireless carrier at a site does this- it would be easy to see where there would be a patchwork of fiber easements across the entire property.

Our guidance to landowners facing these type of requests is as follows.

  1. Don’t ever just sign the simple consent letter.
  2. Ask for full construction drawings showing the route of the fiber and any handholds or fiber boxes being added to the property.
  3. If you don’t mind the location, great.  If you do, ask Verizon to route it along a more favorable location on the property.
  4. Check your lease agreement to confirm whether you have any obligation to grant them another fiber/utility easement.
  5. If not, ask for compensation for the easement.  If you need help figuring out the appropriate amount, contact us.
  6. Ask whether you will be required to sign an easement with another utility company and if so, ask to see the actual document.
  7. Have that easement document reviewed by your attorney.
  8. Ask your attorney to add language that requires Verizon to relocate the fiber at their expense if you need to use that portion of the property in the future.

Wave of NIMFY (Not In My Front Yard) Small Cell Ordinances and Litigation Coming

Small Cell Drawing
Construction drawing page showing a small cell submitted to a municipality for approval

Over the last year, we have seen a significant jump in the number of municipalities revising their land use ordinances in response to the increasing tide of proposals for new small cells to be installed within the right of way. Residents and communities typically dislike having wireless equipment located close to their homes, and many view the possibility of new poles with small cells being erected in their front yards to be even more objectionable. Public opposition is significant, and municipalities are lawyering up to determine what rights they have to oppose these new small cell poles. The industry has historically referred to this faction of tower opponents as “NIMBY”s – an acronym for Not In My Back Yard. Because these proposed small cells are to be installed in the right of way – in front yards – we will refer to this subgroup as “NIMFY”s – Not In My Front Yard. [Read more…]

Verizon Small Cell for Comparison

As an addendum to our earlier article about Crown Castle and Mobilitie small cell proposed installations in Orlando, we thought it would be helpful to include a drawing of a Verizon proposed small cell from Massachusetts.   In this case, Verizon is installing a Cloud Radio Access Network (C-RAN) with two small cells to augment their coverage and capacity in the vicinity of an existing Verizon macrocell which is collocated on an existing SBA Communications tower. [Read more…]