BLACK DOT WIRELESS ALLTEL LEASE REDUCTION OFFERS
ALLTEL LEASE RENEGOTIATION-
HOW TO EVALUATE BLACK DOT'S OFFER
To begin with, Steel in the Air, Inc. is not affiliated with Alltel or Black Dot Wireless. We are a consulting firm which assists landowners who have been approached by Black Dot Wireless on behalf of Alltel regarding their cell tower leases. If you are looking for information about Black dot Wireless, please go to www.blackdotwireless.com. If you have mistakenly found this website while trying to contact Alltel, please see Alltel's website.
In 2006 and 2007, Black Dot Wireless was sending out letters on behalf of Alltel asking landowners to participate in a Lease Optimization Program. They should call the program "Lease Reduction Program" because the landowner rarely receives an optimized lease. Instead, they get the "opportunity" to reduce their rent from Alltel in exchange for a 15 year guarantee on the lease. The letters we have seen so far request a 40% reduction along with a removal of any escalation in the lease. They also offer to buy the lease for a very small lump sum.
The Black Dot letter also requests that additional changes in the language of the lease be made as a "concession" to this optimization of the lease. The problem is that most landowners have no method of valuing what these concessions are worth or what they would be giving up in the future in return for these concessions.
The letters alleged that, just like in the other mergers where some landowners received a termination letter for their lease, the same is likely to happen with Alltel if they ever merge. The letters alleged that by accepting this reduction, the owner would increase their chance of having the site included in a new network for the merged carriers. The letters do not say that Alltel has actually merged with another carrier nor do they suggest that Alltel has plans to actually merge. In 2008, Alltel merged with Verizon and the letters from Blackdot stopped. We hope that this is because Verizon so far has chosen not to use third party optimization firms to negotiate reductions to leases.
In the event that you receive a letter from Blackdot or another third party optimization firm regarding the Alltel Verizon merger we can help. We have assisted over 175 clients with offers to reduce their rent. We can help you evaluate the risk of termination as a result of the merger and advise you as to the fair market value of your lease. Please note that in virtually all cases, you will not have the opportunity to increase your lease rate as part of this "negotiation." We can recommend whether it makes sense to consider the reduction at all and, if so, what to counteroffer. We can help you understand how much the tower is worth to Alltel. Please contact us for a free quote on the cost of our services.
Whatever you do, don't make the mistake of agreeing to sell your lease to Black Dot. If you can't afford to lose the revenue or you are attracted to the concept of selling your lease for a lump sum, contact us and we will be happy to make you an offer that will undoubtedly exceed the current lump sum offer you have on the table. In many cases, such an offer will be 40% greater or more than the one Black Dot is making. There is no fee for our making you an offer and no obligation on your behalf.
Black Dot Wireless is a trademark of Black Dot Wireless, LLC. Alltel is a trademark of Alltel. Steel in the Air, Inc. is not affiliated in any way with Black Dot Wireless or Alltel.