SpaceX Strikes $17 Billion Deal to Acquire EchoStar Spectrum, cell tower lease terminations on the horizon
On the heels of the recent EchoStar / AT&T spectrum deal, there was an announcement that SpaceX has agreed to a $17 Billion deal for EchoStar / DISH spectrum. Cell tower lease termination will certainly be on the mind of property owners and cell tower owners that have DISH / EchoStar cell tower leases.
Most cell tower leases include important provisions under the Termination section. But what exactly should property owners be paying attention to? Here are a few examples we’ve come across that could be relevant in today’s environment. Some leases allow the carrier to end the agreement immediately, while others require advance notice or a termination fee. In certain cases, the lease may outline whether equipment must be removed or if the carrier can walk away without further obligation. By carefully reviewing these terms, property owners can better understand their rights and potential risks, ensuring they are not caught off guard if a termination occurs.
Example A:
“By Lessee for any reason upon written notice from Lessee to Lessor.”
Example B:
“Tenant may terminate this Lease upon thirty (30) days prior written notice to Landlord…….(iii) in its sole discretion for technical, or economic reasons”
Example C:
“Further, this Agreement may be terminated by Tower Company immediately, at any time, upon giving written notice to Owner if …….”Tower Company determines that the Property is not appropriate for economic, environmental, or technological reasons”.
Example D:
“….by Tenant upon sixty (60) days prior written notice to Landlord for any reason, so long as Tenant pays Landlord a termination fee equal to two (2) years’ Rent, at the then current rate; provided, however, that no such termination fee will be payable on account of the termination of this Agreement by Tenant under any one or more of Sections 5(b) Approvals, 6(a) Termination, 6(b) Termination, 11(c) Hazaradous Substances, 18 Condemnation, 19 Casualty or 24(j) Severability of this Agreement.”
JW Tower & Telecom Consulting offers expert cell tower lease guidance to property owners, backed by nearly 20 years of experience with leading companies such as American Tower and T-Mobile.