Greater demand places more pressure for technological advances.  Not only are Wireless companies looking to expand their uses of wireless technology; they are looking to do it more efficiently as well.  Cell site leases are 2^nd only to payroll in expense to cell site companies.  Cingular Wireless and AT&T Wireless decommissioned over 6,000 Cell Sites as a result of their merger.  Sprint Wireless and Nextel did likewise in their merger.

Termination Risk

In almost all cases, the Lessee has the right to terminate their Cell Site Lease with only a 30-day notice.  If the Cell Site is unprofitably for any reason, the Cell Tower Company may wish to terminate.  They also may want to renegotiate a lower rental payment to avoid terminating the Cell Site Lease.

Obsolescence Risk

Technology is advancing at a rapid pace.  Currently, networks are trying to keep up with the new products that consumers have a heavy appetite for.  This appetite can create a need to update facilities at Cell Sites.  Wireless Carriers may deem a Cell Site Obsolete if the cost of updating the Cell Site with the latest technologies outweighs the benefit.

Entitlement Risk

I Jurisdiction may revoke a Wireless Carrier’s license to transmit their signal.  If this occurs, the Cell Site is rendered useless and will be decommissioned.  Also, eminent domain issues may arise with local Jurisdictions as well.  If they decide to widen a highway and the Tower is in the way, the Tower will be removed.

Mergers, consolidation, and bankruptcies

With the wireless Cellular market saturated with 4 national carriers and over 30 regional carriers, the national Wireless Carriers now find themselves competing for one another’s customers. Industry analysts have predicted more consolidation among the carriers.

Technology Changes

As advancements are made, one can easily visualize smaller, less obtrusive Cellular Antenna systems that are significantly more efficient than the ones we see today.

Changes in Wireless Design Plan

Design plan changes result from flux in population density, engineering plans, or roaming agreements.  Carriers now provide each other with the ability to freely “roam” onto one another’s networks.  For instance, T-Mobile Communications, AT&T Wireless, and Cingular Wireless signed agreements for roaming in various parts of the country.

Prohibitive Cell Site Rent Costs

Some Cell Site rents escalate to a level where keeping them becomes economically impractical, especially if a Wireless Carrier can relocate to a much less expensive site a block away.