The time for contracts renegotiation is upon us and towercos must prepare
We are on the verge of a wave of contract renegotiations between towercos and their MNO customers
Several contracts regulating the relationship between towercos and their mobile network operator (MNO) customers are expected to expire in the next five years. Analysys Mason’s suggestion to towercos is not to wait for the natural expiration of the contracts but to start preparing for the renegotiations in advance.
The relationship between towercos and MNOs is regulated through master service agreements (MSAs) or master lease agreements (MLAs) that typically have a duration of ten years, although longer contracts have also been noted.
The first sale-and-leaseback (SLB) deals outside the USA took place in the late 2000s and early 2010s (see figure one).