Property owners need to partner with 5G carriers - Gadgets Price - Gadgets Price
Property owners need to partner with 5G carriers - Gadgets Price

The race to deploy 5G infrastructure has unlocked new uses for the rooftops of restaurants, hotels, residential buildings, and even hospitals and churches. These rooftops are quickly becoming major real estate targets for telecommunications leaders eager to establish 5G technology in densely populated areas.

In fact, next-generation wireless deployments are positioned to be one of the largest distributors of lease revenue in the United States over the next five years, creating a seismic opportunity for landlords and other business owners.

The Biden administration has made expanding the country’s 5G infrastructure a national priority. The $1.2 trillion dual infrastructure package is earmarking $65 billion in funding to expand broadband coverage to rural and underserved communities. Despite its speed and power compared to other wireless technologies, 5G has a much shorter range, only reaching about 1,500 feet.

5G technology is ideally suited for deployment on existing building roofs because of the reduced antenna heights for the next-generation wireless network.

In addition to the major wireless providers, there are also new entrants to the 5G deployment race, including traditional cable companies and Big Tech companies. Together, these companies are projected to invest an additional $275 billion to deploy their 5G macro and small-cell sites. The only effective and efficient way to deploy the vast amount of deployment sites required is to use existing buildings. In other words, the solution to the 5G race is to adopt a rooftop deployment strategy.

Historically, the wireless communications market has been challenging for real estate and other business owners to navigate. Wireless carriers and tower companies have made long-term agreements in the past that have often been unfavorable to the owner of the property.

In many communities, there is strong resistance to building new towers, and the construction, zoning, and permitting process can be time-consuming. However, 5G technology is ideally suited for deployment on existing building roofs due to the reduced antenna heights for the next-generation wireless network. Now, large institutional commercial property owners are better positioned than carrier tower operators to provide a faster, more efficient solution to their wireless real estate needs.

A rooftop deployment strategy provides a mutually beneficial solution for the 5G provider and the property owner. Carriers are achieving their goal of deploying their infrastructure to high-traffic areas as quickly as possible, while property owners reap the financial benefits of renting their roofs and monetizing their existing buildings in new ways.

The impact on net operating income for property owners and the income generated on the terms of a potential 30-year lease could be significant, increasing their access to capital. In addition to collecting payments in exchange for renting the roof to the carrier, landlords can also provide better services to tenants with fast broadband connectivity.

What’s at stake in the 5G deployment race?

The rollout of 5G infrastructure is critical for the United States to keep pace and remain competitive internationally. Sure, 5G is about faster connectivity, increased capacity and zero latency, but above all it is about driving innovation that will enable a range of business services, from autonomous vehicles and extending telehealth to efficiencies in manufacturing and agriculture and improved management of the environment. supply chain.

With all these benefits in mind, 5G is expected to contribute more than $1.5 trillion to US GDP by 2025.

The Biden administration has also identified 5G technology and universal broadband as an economic equalizer for rural America. According to policy statements, rural Americans are more than 10 times more likely to lack access to reliable internet compared to urban residents.

In the recently signed infrastructure law, the president and Congress prioritized investments in rural broadband infrastructure to bridge that digital divide and expand Internet access to these underserved areas. This emphasis would allow landlords with homes in rural areas to benefit more from the expansion of 5G infrastructure.

The road to establishing a strong 5G network in the United States will be a long one. While it shouldn’t be a deterrent, property owners who partner with 5G and wireless carriers should also be aware and aware of the cybersecurity considerations of the technology as they house the infrastructure and run the wireless network. offer to their tenants.

In a recent Aon survey of more than 2,300 risk managers and other executives, cyber risk was named as the number 1 current and predicted future risk globally. More connectivity and 5G are the future, which means the cybersecurity industry must continue to innovate and expand the use of machine learning and artificial intelligence to improve defenses.

We have also seen the creation of organizations such as Building Cyber ​​Security to help provide guidance and a framework to improve cybersecurity resilience in the real estate industry.

To ensure that property owners can effectively monetize their rooftops and participate in the race to 5G, government and private sector must continue to work together to rapidly deploy 5G infrastructure, including timely assessment of 5G installation requests. .

In addition, more work is needed at the state and local levels to improve the zoning and permit process for deploying 5G antennas. Numerous state lawmakers are already considering legislation to better address and develop a 5G strategy for their grassroots, which would also open up new opportunities for landlords.

More policy and technical work needs to be done to fuel the race to 5G, but the revenue opportunity for property owners is immediate and tangible. For restaurateurs or hoteliers recovering from the economic slowdown from the COVID-19 pandemic, monetizing their rooftops could be the difference between closing their storefronts and turning a profit.

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