In an era of growing demand for telecommunications services, leasing land for mobile phone masts is becoming increasingly popular. In Poland and around the world, mobile networks are striving to increase the range and quality of their services, which requires the construction of new base stations. Leasing land for such a mast can be beneficial for both the property owner and the telecommunications operator.

The telecommunications market in Poland is dynamic and is characterized by intensive infrastructure development. There are over 30,000 agreements in Poland regarding the lease of land for mobile phone masts, and this number is constantly growing. According to the report of the Office of Electronic Communications (UKE), at the end of 2023, there were about 20,390 base stations in Poland, some of which are managed by operators such as Orange and T-Mobile. The total number of telecommunications masts and towers in Poland includes both operator masts and those managed by infrastructure companies such as Cellnex.

Cellnex: The Spanish company Cellnex Telecom, one of the largest telecommunications infrastructure operators in Europe, has 14,525 telecommunications masts and towers in Poland. Many of these masts come from acquisitions from mobile network operators such as Play and Plus​ ( Telepolis.pl )​ ( Telko )​.

Play (P4): Play, one of the main mobile operators in Poland, and Plus (Polkomtel), part of the Cyfrowy Polsat Group, use masts purchased by Cellnex. In total, the Play network uses 7,517 masts, and Plus 7,008 masts.

Investments in telecommunications infrastructure are key to further market development. In 2023, PLN 11.1 billion was spent on telecommunications investments, which is slightly less than in the previous year. These investments include both the development of the 5G network and the modernization of existing structures.

The telecommunications market in Poland is one of the most dynamic in Europe, and operators are constantly investing in network development to meet the growing demands of users. As a result, most of the country is covered by modern telecommunications services, which contributes to the increased availability of fast mobile internet and the improvement of the quality of mobile telephony services.

The decision to enter into a contract for the location of a telecommunications mast requires thorough consideration and consideration of several key issues.

Are you responsible for the development of the site and providing access for heavy equipment, such as wheeled cranes? Building a telecommunications mast on your own property is a tempting offer that can generate additional income. However, before making a decision and signing a contract, it is worth considering a few issues. First of all, check the technical conditions of the plot. Not every property is suitable for building a mast. The development of the site, i.e. access to electricity and water, and accessibility, are key. Without these elements, the construction process can be significantly more difficult or impossible.

A telecommunications mast requires a constant power supply. Therefore, the plot should be equipped with a stable power connection of adequate power to ensure constant power supply. Telecommunications masts operate continuously 24 hours a day, 365 days a year. They provide telephone, internet and other telecommunications services that are necessary for individual users, as well as for public institutions, companies and emergency services. For this reason, they cannot afford power outages. The connection power is also a key parameter that should be taken into account when planning the installation of a mast. Depending on the size and function of the mast, power requirements may vary. For example, standard telecommunications masts may require a power supply of several kilowatts to several dozen kilowatts.

Based on technical analyses and planned loads, the appropriate connection capacity should be selected. The energy supplier can advise on the required power and the infrastructure necessary to provide it. It is also worth considering installing an emergency power source, such as a generator, to ensure the continuity of the mast in the event of a power failure. Due to the critical importance of uninterrupted operation of telecommunications masts, backup power systems are also often installed. These can be emergency generators or UPS (Uninterruptible Power Supply) systems, which provide power in the event of a power failure.

After obtaining the necessary permits, the power connection is installed. This includes earthworks, cable installation and the assembly of appropriate devices such as energy meters, switchboards and protection. Modern technologies allow operators to remotely monitor power systems. This allows for a quick response to any irregularities and minimizes the risk of downtime in the mast’s operation.

To ensure the reliability of the power supply, it is necessary for the operator to regularly carry out technical inspections of the energy infrastructure. This includes checking the condition of cables, distribution equipment and emergency power systems.

Although a telecommunications tower itself does not require large amounts of water, access to water may be required during construction and maintenance of the tower. Water may also be needed to cool telecommunications equipment in large installations.

It is necessary to ensure that the mast is connected to the telecommunications network. This may include a fiber optic connection or other forms of wired connections. It is worth ensuring that the plot has access to the appropriate telecommunications channels to avoid problems with data transmission.

The plot should be easily accessible for construction equipment and maintenance crews. A solid access road is essential for transporting construction materials and the mast itself. It is good if the plot also has access to basic municipal services, which will facilitate the management of the facility in the future.

The area around the mast should be secured against unauthorized access. This may include fencing, alarm systems, and monitoring. Environmental and occupational health and safety regulations should also be taken into account during the construction and operation of the mast.

The ground on which the mast is to be placed must be stable and properly prepared. In some cases, geotechnical studies may be necessary to ensure that the mast will be safely placed.

Before starting construction, it is necessary to obtain all necessary permits and approvals from the relevant local authorities and institutions. The restrictions on the height of buildings and structures depend on many factors and can vary depending on the country, region, and even city. Here are some of the most common restrictions and regulations:

1. Zoning plan: Local zoning plans define the maximum height of buildings in a given area. They may vary depending on the land use (e.g. residential, industrial, commercial).
2. Aviation Safety Regulations: Strict building height restrictions apply near airports to ensure the safe approach and take-off of aircraft.
3. Environmental conditions: Restrictions may be imposed to protect the natural environment, landscape or protected areas.
4. Historic Sites and Heritage Protection: In historic areas and near historic sites, height restrictions may apply to preserve the architectural and historic character of the site.
5. Fire regulations: Building heights may be restricted due to evacuation and fire protection requirements.
6. Infrastructure and city services: Building height may be limited by the availability of infrastructure such as water, sewage, electricity and transport.
7. Building density: Height restrictions may be related to building density requirements to avoid over-density and maintain the quality of life for residents.
8. Aesthetics and urban planning: City authorities may impose restrictions to preserve the aesthetics and architectural integrity of an area.
9. Impact on the neighbourhood: Building heights may be restricted to avoid impeding the views, daylight and privacy of neighbouring residents.

Examples of specific restrictions may vary, so it is always a good idea to check local regulations and zoning plans in your location.

Access to your property for heavy construction equipment is a key aspect that can affect a telecom company’s decision to rent your land. You should make sure that there is an adequate access road that will allow the transport of large machinery and construction materials. Access roads should be in good condition so that heavy equipment can reach the site without any problems. If the roads are in poor condition, the construction company may not carry out the project on your land. It is also important that the roads are wide enough and do not have weight restrictions.

Before signing the contract, it is also worth familiarizing yourself with the administrative procedures and formalities that will be necessary to start the construction of the telecommunications mast.

1. Building Permits: Building a telecommunications tower requires obtaining appropriate building permits. Find out what documents will be needed and what the procedures are for obtaining them.
2. Neighbors Agreements: In some cases, it may be necessary to obtain permission from neighbors to build a mast. It is worth talking to neighbors in advance to avoid later conflicts.
3. Lease Agreements and Terms: Carefully review the terms of your lease agreement. Make sure they are favorable and clearly outline the rights and obligations of both parties. It is also a good idea to consult a lawyer to make sure the agreement is legal and protects your interests.

Building a telecommunications mast on your own property can bring significant financial benefits, but requires careful preparation and analysis. Checking the technical conditions of the plot and understanding the administrative procedures and formalities are key to the success of the entire undertaking. With proper preparation, the process of building a mast can proceed smoothly and without any problems.

Before You Sign the Contract: Make Sure Your Neighbors Are Supportive of the Planned Investment

When planning to install a cell phone tower, it is worth paying attention to the opinions and attitudes of your neighbors. These towers are often controversial, mainly for two reasons: health concerns and landscape aesthetics. Obtaining the consent of the local community can significantly facilitate the process of installing the tower and prevent any potential conflicts in the future. In this article, we will look at why the consent of neighbors is so important and how to best approach this issue.

• Health Concerns

One of the main reasons why residents oppose the construction of cell phone towers is concerns about the potential health impact. According to research conducted by the World Health Organization (WHO), exposure to electromagnetic fields (EMF) generated by cell phone base stations is very low and within international guidelines. However, in many communities these concerns are still strong and can lead to opposition to the installation of towers.

Example: In 2019, residents of the Dutch city of Zaanstad successfully blocked the construction of a mast, citing health concerns. Despite the national health authority stating there was no evidence that the masts were harmful, the protests from residents were so strong that the investment was halted. Read more in the article: “What do 5G waves do to your brain?”

• Landscape Aesthetics

Another common argument against building mobile phone masts is their impact on the aesthetics of the landscape. Many people believe that tall structures spoil the view and can lower the value of properties in the area. Therefore, it is important to conduct public consultations before the investment begins and take into account the opinions of residents on the location and appearance of the planned mast.

Example: In 2020, in the British city of Bath, residents opposed the construction of a mast on a historic site due to its impact on the landscape. After much debate and consultation, the operator decided to move the mast to another location, which ended the conflict. More in the article: “The base station in wireless communication: the key to modern telecommunications”

• Statistics and Research

Research by consulting firm Deloitte shows that infrastructure investments, such as the construction of cell phone towers, can encounter less social resistance if they are preceded by solid consultation with the local community. According to a 2021 report, projects that received local community approval were 50% more likely to be successfully completed.

In addition, data collected by the analytical company Statista shows that 60% of residents of areas where public consultations were carried out before the investment began had a positive attitude towards the new masts, compared to 30% in areas where there were no such consultations.

How to Get Community Approval?

1. Public Consultations: Conducting open meetings with residents where investment plans can be presented, questions can be answered and doubts can be dispelled.
2. Transparent Communication: Providing information on the impact of masts on health and the environment, based on sound scientific research.
3. Design Adaptation: Where possible, adapt the location and appearance of the flagpole to the expectations of the community, e.g. by concealing it in structures resembling trees or buildings.
4. Partnership with Local Authorities: Working with local authorities and community organisations to gain their support and the trust of residents.

In the long term, the consent of the local community will contribute to the harmonious coexistence of new technologies and the existing urban environment.

Benefits for Landowners of Having a BTS

1. Steady income – Landowners can count on regular income from the lease. Lease agreements are usually long-term, which provides financial stability for many years. However, there is a clause in such agreements that allows the agreement to be terminated at short notice.
2. Increased property value – The presence of a mobile phone mast on a plot of land can increase its market value, especially in rural or peripheral areas.
3. Low maintenance costs – The lessee, i.e. the telecommunications operator, usually assumes all costs associated with the construction and maintenance of the mast.
4. Landowners can take advantage of the possibility of a lump sum payment for long-term rental of space for telecommunications infrastructure offered by Telecom Infrastructure Partners. This option can be particularly attractive for companies, cooperatives, offices, institutions and individuals who need quick access to larger sums of money. The financial benefits resulting from changing the monthly rent to a lump sum, high payment are usually many times higher.

A single, non-interest bearing amount provides a wide range of investment opportunities, making it easier to invest in the most effective types of business activities that bring higher, long-term returns. This is definitely more beneficial compared to low, regular payments, often not indexed for years.

Financial stability: A lump sum payment eliminates the risk of potential problems with regular rent payments. Regular payments are subject to a short-term termination clause, usually three months, which leads to a lack of long-term financial stability. In addition, the termination clause makes it impossible to obtain a loan, as banks do not consider monthly payments as adequate credit security.

The lack of long-term obligations and the receipt of a lump sum payment relieves the landowner of the need to monitor and manage the lease for many years.

Benefits for telecom operators

Leasing land for a mobile phone mast brings a number of benefits to telecommunications operators, including increased coverage, financial savings, location flexibility, and the ability to implement modern technologies more quickly. These factors make leasing the preferred form of acquiring land for the expansion of telecommunications infrastructure.

1. Increased coverage – New mobile phone masts allow operators to expand their networks, which translates into better signal coverage in various regions. Especially in rural, peripheral or hard-to-reach areas, where the infrastructure is less developed, the construction of new masts is crucial. Thanks to this, operators can provide their customers with reliable access to telecommunications services, such as fast mobile internet or high quality voice calls. The expansion of the network also helps to reduce the load on existing infrastructure, which improves the quality of services even in densely populated urban areas.
2. Savings – Leasing land for a mobile phone mast is often more cost-effective than buying real estate for this purpose. Land purchase costs, especially in attractive locations, can be very high. Leasing allows operators to allocate funds in a more flexible way, enabling investment in technology and infrastructure development. In addition, leasing eliminates the costs associated with maintaining and managing the property, which translates into lower operating costs. Additionally, lease agreements can be tailored to the specific needs of operators, allowing for more effective budget planning.
3. Location flexibility – Telecommunications operators can strategically choose the most advantageous locations in terms of signal coverage and demand for services. Thanks to leasing, they have the ability to quickly respond to changing market needs and adapt to the dynamically growing demand for telecommunications services. The ability to choose various locations allows operators to optimize the network and minimize the so-called “white spots”, i.e. areas without coverage. Additionally, location flexibility allows for better adaptation of the infrastructure to specific geographic and demographic conditions, which increases the operational efficiency of the telecommunications network.
4. Faster implementation of 5G technology – Leasing land for mobile phone masts is particularly important in the context of implementing 5G technology. New telecommunications standards require a denser network of base stations to ensure high throughput and low latency. Thanks to flexible leasing options, operators can implement new technologies faster and more efficiently, which is crucial in the competitive telecommunications market. Accelerating the development of 5G infrastructure allows operators to offer modern services, such as the Internet of Things (IoT), autonomous vehicles or advanced solutions for smart cities.
5. Minimizing investment risk – Land lease allows operators to minimize investment risk associated with purchasing real estate. In the event of a change in technology, market demand or legal regulations, operators can more easily adapt their strategy without having to incur high costs associated with owning real estate. The flexibility of lease allows for dynamic response to changing market conditions and maintaining a competitive position in the telecommunications market.
6. Partnering with Telecom Infrastructure Partners. In the dynamic telecommunications landscape, the importance of strategic partnerships cannot be overstated. Telecom Infrastructure Partners (TIP) offers a unique model for telecommunications companies and operators to increase operational efficiency and financial stability. By partnering with TIP, telecommunications companies benefit from long-term, predictable cash flow, reduced capital expenditure, operational efficiency, and the flexibility to focus on their core business activities.

One of the key tenets of TIP’s business model is to invest in telecommunications infrastructure leases with existing contracts. Unlike traditional tower companies that seek to maximize site sharing and rents, TIP provides long-term, stable, bond-like cash flows. This stability is key for telecommunications operators, who can rely on TIP to manage site leases without the volatility associated with physical infrastructure investments.

By securing long-term contracts, typically 30 years, TIP provides telecommunications companies with a steady and predictable income stream, which is essential for financial planning and stability. Site owners face a binary risk, where a site either exists and generates income or it does not. TIP mitigates this risk through a diversified portfolio approach. With hundreds or thousands of sites in its portfolio, TIP manages portfolio risk, meaning that the termination of one site lease does not have a drastic impact on the overall financial health of the company.

Risk diversification is beneficial to telecom operators because it provides a more secure and stable financial environment. Many mobile site owners prefer to make lump sum payments upfront rather than over time. This approach benefits site owners by providing them with immediate capital, and helps telecom operators by facilitating lease modifications and extensions without the need for renegotiation.

This is especially valuable when implementing new technologies such as 5G, where speed and efficiency are key. Working with TIP simplifies the process of technology implementation and infrastructure modernization. TIP acts as a single point of contact for multiple BTSs, eliminating delays and complications associated with renegotiation. This supports the delivery of value-added services such as enterprise wholesale access, edge computing, fiber infrastructure and data analytics services.

By minimizing operational hurdles, telecom operators can implement new technologies more quickly, maintaining a competitive advantage in the marketplace. Telecom operators often prefer to spend their capital expenditures on core businesses rather than on land and site leases. The TIP model allows operators to reduce capital expenditures by taking on the financial burden of the lease premium. In addition, TIP helps reduce operational expenses by facilitating agreements that site owners are more willing to accept, avoiding costly and time-consuming litigation.

Financial optimization enables operators to invest more in innovation and service improvement, driving growth and customer satisfaction. TIP’s founder, Eric Overman, has extensive experience in lease bonus management worldwide. With significant financial support from InfraBridge and SwissLife Properties Managers , TIP is prepared to implement large-scale lease bonus and sale-return programs worldwide. TIP’s solid financial foundation and experience make it a reliable partner for telecom operators looking to optimize their lease management and financial operations.

In an industry where stability, efficiency and financial optimization are key, telecommunications companies can greatly benefit from working with Telekom Infrastructure Partners. TIP’s innovative business model offers long-term predictable cash flows, reduces financial risk, increases operational efficiency and provides significant upfront payments. By working with TIP, telecommunications operators can focus on their core businesses, drive technological advancements and maintain a competitive advantage in an ever-evolving telecommunications landscape.

In summary, the process of leasing land for a mobile phone tower requires several key steps. The first is negotiating and concluding a contract, including determining the rent, the duration of the contract and the rules for its extension. Then, administrative approvals must be obtained, including permits from local authorities and, in some cases, from neighbors. The next step is ensuring that the investment complies with environmental and public health regulations.

Challenges and future prospects include social protests, legislative changes, and technological advances. Local communities may oppose the construction of towers due to health or aesthetic concerns. Changing regulations may affect the terms of leases and construction of new base stations. The rapid development of 5G technology and future innovations may increase the demand for towers, which creates new opportunities for both landowners and operators.

Leasing land for a mobile phone mast can bring benefits to both property owners and telecom operators. Despite challenges related to legal regulations and local communities, the prospects for this market are promising, especially in the context of growing demand for mobile services and developing technologies.

In the mid-1990s, three companies (American Radio, Castle Towers, and Steve Bernstein Associates) in the United States began to specialize in selling space on multi-tenant telecommunications towers. This led to the creation of such giants as American Tower, Crown Castle, and SBA Communications. Mobile network operators (MNOs) in the United States realized that managing passive infrastructure was not their core business, so they began to sell their towers to infrastructure companies that could manage them more efficiently and cheaply. As a result, Crown Castle and American Tower acquired towers from T-Mobile, AT&T, and Verizon Wireless for billions of dollars, and in Europe, Cellnex acquired thousands of towers in Spain, France, Italy, and the United Kingdom.

The next stage was the third wave, with firms like Wireless Capital Partners and Unison Site Management focusing on acquiring land leases, and that model expanded internationally. WIP invested in thousands of sites in 20 countries. Tower companies became a natural fit for lease aggregators. TIP, founded in 2020, continues to invest in long-term, predictable cash flows by offering stable leases to mobile operators and tower companies.

Sources:

• Leasing land for a mobile phone mast – what to remember?
• Proceedings concerning a permit for the construction of telecommunications infrastructure.
• Base Stations – Lease Agreements
• Where can a mobile phone mast be erected ? The company applied for a building permit for a mobile phone base station in Łódź, but encountered opposition from neighbors who feared a violation of spatial order and a negative impact on the environment. The mayor of Łódź approved the project, despite the objections, arguing that the investment complies with the regulations and does not require a decision on environmental conditions. The Łódź voivode upheld this decision. However, the Voivodeship Administrative Court (WSA) in Łódź stated that it was necessary to conduct explanatory proceedings regarding the radiation power of the antennas and the impact of the investment on the environment. The WSA overturned the decisions of the voivode and the president, expecting new proceedings.
• The World Health Organization (WHO) is a specialized organization of the United Nations (UN) headquartered in Geneva, responsible for public health. In 1946, the UN convened the International Health Conference in New York, at which 61 countries ratified the WHO Constitution. In 1948, when the organization began its operations, the number of member states was 88. The WHO currently has (as of July 2020) 194 countries. The main holiday organized by the WHO is World Health Day, which falls on April 7 (the anniversary of the organization’s founding). The WHO’s task is to work towards increasing cooperation between countries in the field of health protection and combating epidemics of infectious diseases, as well as setting standards for the composition of medicines and food quality. The organization also strives to provide medical care to as many people as possible and reduce the infant mortality rate. The organization’s greatest successes include combating epidemics of dangerous diseases such as smallpox, tuberculosis, malaria, cholera and plague through mass vaccinations.
• Company Report – Deloitte Touche Tohmatsu Limited , commonly known as Deloitte, is an international professional services network. Deloitte is the world’s largest professional services network by revenue and number of employees and is considered one of the Big Four auditing firms, alongside EY, KPMG and PwC. Deloitte provides audit, consulting, financial advisory, risk advisory, tax and legal services, with approximately 457,000 employees worldwide and operations in over 150 countries. In fiscal year 2023, the network generated revenue of $64.9 billion. The company has sponsored numerous events, including the 2012 Summer Olympics.
• Statista Analytics Data – Statista is a leading global platform providing market and consumer data, founded in 2007 in Germany. The company employs around 800 people in offices located in Hamburg, London, New York, Los Angeles, Paris, Singapore and Warsaw. It offers a wide range of content, such as market forecasts, studies and reports, as well as statistics and infographics. Statista provides comprehensive data on various market sectors, including FMCG, digital media and technology, covering 150 countries, including Poland.
• UPS (Uninterruptible Power Supply) – An uninterruptible power supply (UPS) provides automatic backup power when the main power fails, switching to energy stored in batteries, supercapacitors or flywheels, providing near-instantaneous protection. Although the battery life is short, it is sufficient to provide backup power or safely shut down equipment. UPSs also include surge protection to protect against power surges. They protect equipment such as computers, data centers and telecommunications equipment, from small units for individual computers to large systems for entire data centers. In addition to providing short-term power, UPSs can correct common power problems such as voltage spikes, voltage sags, interference, frequency instability and harmonic distortion. The selection of a UPS should take into account both the capacity and the required power quality to avoid introducing new power quality problems.
• Office of Electronic Communications (UKE) – is a regulatory body responsible for the telecommunications and postal markets, management of frequency resources and control of products emitting electromagnetic fields, including radio devices. Its main tasks include analysis, regulation and control of the telecommunications and postal markets, management of frequency resources and telephone numbering and control of electromagnetic compatibility. It is a separate and independent body, appointed by the Sejm at the request of the Prime Minister for a 5-year term. The mission of the President of UKE is to ensure access to modern telecommunications and postal services, and his vision is to act as an objective moderator of market development.