What A Licensing Agreement Can Mean For Your Building’s Connectivity Needs

Cellular connectivity has moved higher on the office tenant wish list. 

In addition to amenities and an ideal location, tenants look to properties with access to reliable cellular connectivity. To meet tenant demand, more building owners are installing in-building cellular solutions. 

But these solutions can come at a monetary cost to owners and managers, and often require complex carrier acceptance processes. To provide better-connected buildings while continuing to make a profit, property owners and managers need to be smart about how they implement in-building connectivity systems. Some property managers have opted into licensing agreements to streamline the process. This type of agreement is like a lease for connectivity products. It allows building owners to license out approved, signal source equipment to make their property more connected. 

“This approach helps minimize wireless operator capital contribution requirements and expedites the carrier approval process,” SOLiD Senior Vice President of Marketing Tim Moynihan said. “It helps buildings achieve a more connected space, which can drive higher occupancy rates and increased leasing prices per square foot.” 

A Distributed Antenna System provides a neutral host environment that shifts ownership from the carrier to a building owner, integrator or third-party provider. It combines the signal source from multiple wireless operators over a single in-building network, and comprises several pieces of equipment. Base station equipment, which has historically been provided by the carrier, is now available for the building owner via a lease agreement and an affordable DAS network.

This DAS equipment and infrastructure can cost anywhere from $0.50/SF to $2/SF depending on building size, configuration, location and wireless operator. Building owners typically purchase the DAS network and employ companies to procure and license the required wireless operator baseband and radio equipment.

Licensing agreements can benefit both parties. The third-party licensing company retains ownership, while the building owner enjoys the services without the responsibility.

After purchase, installation and commissioning, building owners pay ongoing maintenance fees to the system integrator. Licensing partnerships allow third parties to procure and fund the signal source equipment on behalf of the wireless operators, granting them full control of an in-building system.

To learn more about in-building licensing agreements, sign up for a webinar hosted by SOLiD and Cheytec on April 26 at noon ET.