Saturday, February 09, 2008

BlackDot Wireless and AT&T Still Trying To Get Reductions


Cell site lease groundowners who thought they had heard the last from AT&T and Blackdot after refusing to lower their ground lease rates are being contacted again by Blackdot Wireless with the same pitch- just a different angle. These landowners or building owners with AT&T cell sites weren't persuaded by the earlier pitch that AT&T and Cingular were merging and that there was possible duplication in the AT&T network that might lead to lease terminations.


Blackdot clearly believes in the old addage: If at first you don't succeed... because they have a new pitch to try to get some of the higher lease rate landowners to reduce their leases. Blackdot's people must have time on their hands, because the new attempt is a glossy document called a Site Appraisal Form that they have generated that attempts to show all of the other options available to AT&T in the nearby vicinity. There is a shiny map and a list of all possible alternative sites within 1 mile which also lists the lease rate that Blackdot "purports" that AT&T could get from either the tower owner or landowner.


Blackdot represents that AT&T has signed master lease agreements with Walmart and McDonalds to place towers on their properties at $1500/mo. They also represent that either Walmart or McDonalds will pay the relocation costs to move AT&T to their facility. The pitch is that if the landowner does not agree to the proposed reduction, that AT&T will move it's cell site to either a Walmart or a McDonalds because of the lower lease rate.


The Site Appraisal Form includes all types of official looking comparisons and graphs- like a Performance Index that shows the rent of the various options in graph form. There is a Current Lease Consensus- that looks like the threat level bar at the airport- which undoubtedly will show yellow or orange or red for every site they send it to. (Because that constitutes danger to the lease longevity)


The funny thing is that I doubt that the wireless carriers have ever even seen this form- and definately don't use graphs or threat bars to determine whether a landowner's lease is over market average. However, Blackdot does not show other lease rates that other landowners are receiving in the area- because that might show that in fact that the subject landowner's lease is not really that expensive.


Ironically, Blackdot is not even sure enough of its own information - there is a conspicuous statement at the bottom that states that Blackdot does not guarantee or warranty the accuracy of this information that they are using to try to convince the landowner that they need to reduce their rent. If they can't guarantee this information- how can they expect you to rely upon it to make a decision?


If you have been approached by Blackdot to renegotiate your lease, please contact us and we can help sort through the fact and the fiction behind the possibilities that AT&T would actually move to another location. We can evaluate what the costs would be for the relocation and whether it makes sense based upon the expected savings. Lastly, we can make suggestions on how to respond.


If you have found this post in error while looking for information on Blackdot and wish to visit their website- please insert www blackdotwireless.com into your browser. If you are looking for AT&T, please goto http://www.wireless.att.com/home/. If you are looking for McDonalds- http://mcdonalds.com/ or Walmart at http://www.walmart.com/. Please note that Steel in the Air, Inc. is not affiliated with Blackdot Wireless, AT&T, McDonalds or Walmart in any way. Blackdot Wireless, AT&T, McDonalds, and Walmart are registered trademarks of those companies.

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3 Comments:

At 3/27/2008 5:17 PM, Blogger seattlesteve said...

I received a call from Black Dot Cellular today. He gave his name as Michael Fox. I heard from them a year ago last November when they wanted to reduce their lease and told them we had a lease. We didn't need to talk further. Their story today is that AT&T tied up 700 MHZ spectrum and doesn't need as many sties. If I work with them life will be good and we'll get less $. I asked Michael to put it all in writing. I'm waiting...

 
At 3/27/2008 5:22 PM, Blogger Steel in the Air said...

Steve,

I would ask them when if AT&T has deployed their 700MHz network and if so- where is the nearest 700MHz site. If he tells you there is one nearby- he is lying. (unless it was owned by Aloha who AT&T bought)

Thank you for sharing another Blackdot "reason". This is up there with Balloons are coming that will replace cell sites in urban areas.

 
At 9/19/2008 11:05 AM, Blogger Chemosh said...

We have been approached by AT&T wanting to modify our lease. The tower is in a residential section of an upscale neighborhood in the Dallas/Ft. Worth area (yes they hate us there but we were there first). The city is adamantine about co-location meaning "NO-MORE TOWERS: USE EXISTING"! But they want to extend the Termination notice to 365 days?!?! and a rent guarantee of 36 months. HA! I can have this if we reduce our rent by several hundred dollars/month and reduce the escalator by 2.5%. Lucky ME.

 

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