The U.S. Senate has passed the National Defense Authorization Act (NDAA), which includes full funding for the "Rip and Replace" program. This development has significant implications for the wireless industry and cell tower landlords across the country.

What is the "Rip and Replace" Program?

The Secure and Trusted Communications Network Reimbursement Program, commonly known as "Rip and Replace," aims to remove and replace telecommunications equipment from companies deemed national security threats by the U.S. government[1]. Initially, Congress allocated $1.9 billion for this program, but it fell short of the estimated $4.98 billion needed[1].

Key Points for Cell Tower Landlords

1. Increased Funding: The NDAA authorizes an additional $3.08 billion, bringing the total funding to $4.98 billion[1].

2. Spectrum Auction: The funding will come from an auction of AWS-3 spectrum, with the FCC granted limited authority to conduct the auction[1].

3. **Rural Focus**: The program primarily benefits small and rural telecommunications carriers, which could lead to increased activity in these areas[1].

Potential Impact on Tower Construction Activity

This substantial funding increase is likely to spark a surge in tower construction and equipment replacement activities across the country, particularly in rural areas. Here's what cell tower landlords can expect:

1. Increased Demand: As carriers rush to replace equipment, there may be a higher demand for existing tower space and new tower locations.

2. Equipment Upgrades: Existing towers may see significant equipment upgrades or replacements, potentially leading to lease renegotiations.

3. Rural Expansion: With a focus on small and rural carriers, previously underserved areas may see increased tower construction activity.

4. Tight Timelines: Carriers will likely work on accelerated schedules to meet program deadlines, potentially leading to more frequent site visits and modifications.

How Landlords Can Capitalize on This Opportunity

While landlords cannot directly access the "Rip and Replace" funding, they can position themselves to benefit from the increased activity by charging Carriers and TowerCo’s for parking, staging and constructing outside the Lease Premises. For Landlords who want to be prepared we suggest:

1. Stay Informed: Keep up with local carriers' plans for equipment replacement and network upgrades.

2. Prepare Your Property: Ensure your property is ready for potential new equipment or tower construction.

3. Review Lease Terms: Consider reviewing and potentially renegotiating lease terms to accommodate new equipment or increased site access.

4. Network with Carriers: Reach out to local carriers to express interest in hosting new or upgraded equipment.

5. Consult Experts: Consider working with telecom consultants to understand the technical requirements and potential lease implications of the "Rip and Replace" program.

CSA has created a Cell Site Optimization Program designed to Assess, Prioritize then Execute a plan to help landlords maximize the value of their lease while also protecting their property and rights. For more information call 213-986-7620, email info@cellsiteappraiser.com or click here to request and receive the info you need in Cell Site Appraisers FREE Cell Site Optimization Guide.

“Rip and Replace” funding represents a significant opportunity for the wireless industry and cell tower landlords. By staying informed and proactive, landlords can position themselves to benefit from the increased activity and investment in wireless infrastructure.

Citations: [1] https://www.rcrwireless.com/20241218/policy/rip-and-replace-funding

All of the carriers have begun building and upgrading their cell sites for 5G. That means thousands of sites across the country will need to among other things swap out antenna, add fiber internet and or add back generators. For many sites, upgrades require the consent of the landlord to have contractors come on site to conduct the upgrade.

Landlords need to be aware of their rights and the rights of their tenant. Improvements that call for the use of additional space for example typically comes with additional rent paid to the landlord, if they ask. That said, if the tenant can get additional space they’ll take it. That’s why landlords should have any request for consent reviewed by a cell site professional who understands the request and to determine if any additional rent is due to the landlord. CSA can help, contact us if you receive a letter of call asking for permission to make changes to your site.