Around 8-10 thousand farmers are currently renting out free land or roofs to mobile phone providers so that they can operate mobile phone masts or antennas there.

The topic of mobile communications sites has also played a role in the business news in recent years. This is due to internal restructuring at the mobile communications giants as well as the latest technical and political developments. What developments are involved? And what does this mean for farmers who rent land to network operators?

Why is there so much movement on the market?

In recent years, many network operators have outsourced their antenna sites to subcontractors or sold them to investors. This has created a situation on the market that is sometimes difficult to understand. Even though there are now many different companies in the sector, the main players on the German market have not changed:

Mobile communications infrastructure in Germany: A look at the most important players

  • Deutsche Telekom: Deutsche Funkturm Medien Gesellschaft(DFMG), a subsidiary of Deutsche Telekom, operates around 34,000 mobile communications sites and has been sold 51% to the digital bridge Brookfield for EUR 17.5 billion in 2023.
  • Vodafone: Vodafone owns the company Vantage Towers, which already operates almost 20,000 sites in Germany alone.
  • Telefónica: The Spanish mobile communications giant (active in Germany as O2, among others) has outsourced its passive infrastructure to its subcontractor Telxius. Telxius, in turn, has sold 30,000 sites to the US group ATC.
  • The German provider Drillisch/1&1 is a newcomer and, unlike the other three companies, faces the challenge of having to build its own completely new network.

Mobile communications infrastructure in Austria: A look at the most important players

The mobile communications market in Austria has changed significantly in recent years. Network operators have increasingly spun off their infrastructure or sold it to independent companies, which is often difficult for owners of mobile communications sites to understand. Despite the increasing complexity, there are a few key players that dominate the market:

  • A1 Telekom AustriaA1, the largest telecommunications company in Austria, operates thousands of mobile phone masts across the country and has invested heavily in the expansion of the 5G infrastructure in recent years. The passive infrastructure is managed by EuroTeleSites GmbH, a subsidiary of the A1 Telekom Austria Group. EuroTeleSites is responsible for the operation, leasing and optimization of the radio towers, which allows A1 to focus on network provision and customer services.
  • Magenta TelekomMagenta, a subsidiary of Deutsche Telekom Group, is one of the leading mobile communications providers in Austria. However, Magenta’s mobile sites are not managed by Deutsche Funkturm GmbH (DFMG), as is the case in Germany. Instead, Cellnex Telecom, an independent European infrastructure operator, is responsible for operating and leasing the sites in Austria. This cooperation allows Magenta to focus flexibly on network expansion, while Cellnex optimizes the infrastructure.
  • Drei (Hutchison Drei Austria)operates a nationwide mobile network and is investing heavily in the modernization and expansion of 5G sites. Drei’s radio towers and antenna sites are also managed by Cellnex Telecom, which owns and leases the infrastructure. This collaboration allows Drei to focus on expanding the network and providing innovative services.
  • New player: 1&1 Drillisch in Austria: does not currently have its own mobile communications infrastructure in Austria. In contrast to the German market, where 1&1 is building its own network, the provider in Austria is currently using the capacities of an established network operator. It remains to be seen if and when 1&1 will extend its expansion plans to the infrastructure in Austria.

Although many locations are still held by the network operators themselves, this is set to change in the coming years. The reasons and motivations for such restructuring are manifold:

– Providers see this as an opportunity to reduce their debts and relieve the pressure on their balance sheets.

– Companies need capital to expand their network, for example as part of 5G. The infrastructure in rural areas also needs to be modernized. This is where farmers in particular come into play as landlords of sites.

– The spin-offs bring profits on the stock exchange. Vantage Towers, for example, has moved up from the SDAX to the mid-cap index MDAX.

– Radio towers promise companies an attractive return, partly through subletting. Vantage Towers, for example, generates an annual turnover of over 20,000 euros with each of its German towers.

There are also technical developments. The future expansion for 5G is already playing a major role in the plans of mobile communications companies. Existing masts need to be upgraded accordingly. Due to the technical peculiarities of 5G, new masts will also have to be built. Therefore, the 5G expansion will also be important for German farmers with free land in the coming years.

However, economic considerations and technical progress are not the only reasons for the current upheavals. The Federal Network Agency has imposed strict guidelines on mobile phone companies. These include expansion obligations. These stipulate, for example, that all German households must be supplied with fiber optics and the latest mobile communications standard by the end of 2030. The same applies to highways, important federal roads and railroads.

There are still many “white spots” in rural areas in particular and therefore a particularly high demand for new locations for 4G and, in future, 5G. The Federal Network Agency even expressly emphasizes that rural areas in particular need to be better covered. To achieve this, mobile communications companies are dependent on farmers as landlords of sites. Tall buildings and silos are particularly sought-after, as are open spaces – for example, if they are located next to an ICE line or a highway.

What impact do the developments have on landlords of locations?

The current restructuring also has consequences for many farmers who rent sites to mobile communications companies. With the outsourcing of antenna sites to subcontractors, one of the contracting parties, namely the tenant, is officially changing. Many landlords have already received corresponding letters from ATC, Vantage Towers and Co.

However, mobile network providers like to use such restructuring as an opportunity to influence contract terms to their own advantage. It is important to understand how the network providers act in contract negotiations. Telekom, Telefónica, Vodafone and 1&1 do not usually conduct the negotiations themselves. Instead, landlords are often contacted by the subcontractors mentioned above. There are also large, internationally active external service providers such as MD7, Divigroup and Eubanet. There are also smaller, regional brokerage companies that specialize in such contract negotiations.

Either way, the negotiations on the part of the mobile phone providers are conducted by professionals who are highly trained and will try to get the best contract terms for the major network operators. They are prepared for all the usual questions and legitimate objections from landlords. In addition, the contractual documents are often difficult for laypersons to understand. This applies to negotiations for expiring contracts as well as for first-time contract offers.

What should landlords do if they receive mail from the mobile phone provider?

So what should farmers do when receiving new contract offers or renewing existing contracts?

It’s best not to sign anything at first, recommends Raymond Rieke from Vorblick Consulting. He himself worked for years on the side of mobile phone companies and therefore knows the methods they use when negotiating contracts. He founded Vorblick out of a desire to support landlords of mobile phone sites. In the past, he has already worked with farmers and provided technical advice to the farmers’ association.

Mr. Rieke advises not to simply accept possible deteriorations in the contractual conditions. Because there is often still room for negotiation. Negotiations are therefore also an opportunity for farmers to achieve better conditions for themselves.

Here it can be worthwhile to call in the Vorblick company as experts. This way, you can be sure that you get the best out of the contract.
This applies in all situations:

  • for offers for completely new locations
  • in negotiations of existing contracts.
  • For contracts that are due to expire soon, you can get advice in advance.

However, it should always be noted:
Rent is always a matter of negotiation and varies greatly from location to location. This makes it difficult to make general predictions without knowing the details of the property.

In their letters to landlords, mobile phone companies often complain that the difficult situation on the market is forcing them to make savings. One should not be convinced by this: The high stock market profits of Vantage Towers and Co. speak a different language. In addition, network operators have to develop new locations in order to meet the requirements of the Federal Network Agency. They are therefore dependent on landlords. Farmers who rent out sites to mobile phone companies or are thinking about it can therefore see the current changes on the market as an opportunity for additional income.

Conclusion: Get more out of your contract

Don’t rely solely on the suggestions of mobile phone providers and their acquisition agents. With Vorblick Consulting, you have a strong partner who will stand up for your interests and make sure you get the best deal. Contact us today for a free site analysis and find out how much your mobile antenna is really worth.