4G Auction Technology Update

In our last newsletter we discussed new technologies that will be coming to the market place in 2012 and the government auction of new radio spectrum licences in Quarter 3 2012.

The auction is designed to facilitate the rollout of the next generation of wireless
technology, known as 4G. The UK’s regulator, OFCOM, says that the spectrum auction will be the largest ever single auction of additional spectrum for mobile services in the UK, equivalent to three quarters of the mobile spectrum in use today and 80{777ac72fd69ff01ad195259e627c8dc88134d9e82ba47b6f7abc0cd5f89f0bbc} more than the 3G auction which took place in 2000.

The successful bidders will quickly need to establish their network to allow them to start to generating an income to pay off their investment. Pentacom Networks Limited’s strategy is to proactively promote our portfolio of landlords as suitable for new technologies. This will enable further revenue income to be generated to the Landlord. We will be carrying out the front end analysis of the Pentacom Networks Limited portfolio in order to promote your site as “oven ready” to new operators during the next six months.

As a demonstration, in late November of this year, O2 successfully trialled a 4G network in London to illustrate the benefits of the new technology. The trial has significance for your site because it demonstrates the technology is close to implementation.

The existing Operators will also be using the same technology and over the next 24 months, our clients will be contacted by them wishing to upgrade their equipment. Pentacom Networks Limited will ensure that wherever possible a fair return for our landlords is achieved.

 

For further information please visit the following links;
http://www.bbc.co.uk/news/technology-15717913

http://www.ft.com/cms/s/0/8711efd6-5d60-11e1-869d-00144feabdc0.html#axzz1sPKi8aqI

Consolidation and decommissioning of sites

We have received many letters from operators threatening to decommission sites, together with aggressive demands for rent reduction. From our sources we believe around 10,000 of the combined 26,000 T-Mobile and Orange sites will be removed over the next 2-4 years.

Although we cannot guarantee the future of any site, Pentacom Networks Limited will ensure that our landlords are treated fairly and the maximum value for any re-negotiation is achieved.

Where sites are no longer required, there may be opportunities with other operators to utilise the existing tower/mast in order to create a new/replacement revenue stream.

Pentacom Networks Limited will be reviewing these options on an ongoing basis with our clients.

Operator Technology Upgrades

In addition to 4G technologies, existing 2G and 3G equipment will be replaced on sites within the next 12 months.

Pentacom Networks Limited will be supervising this work and will ensure that appropriate terms are agreed where the upgrade exceeds existing equipment rights.

Engineer visits

Over the next few months one of our engineers will be visiting your site to carry out a site audit. This visit will involve checking available aperture space and undertaking a condition survey of the existing installation.

If it is discovered that the Operator has breached the terms of the lease then Pentacom Networks Limited will negotiate to obtain suitable recompense from them.