The Risks of Not Having Knowledgeable Advisors Negotiate Your Broadband Right of Entry (ROE) Agreements

In today’s commercial real estate market, high-speed broadband access is a critical necessity. Tenants demand reliable internet service, and a property’s ability to meet those expectations can significantly impact its desirability and value. As a result, many property owners are entering into Right of Entry (ROE) agreements with broadband providers to grant access for the installation and management of the necessary infrastructure. However, negotiating these agreements without the guidance of a knowledgeable advisor can lead to costly mistakes and long-term consequences.

Here are some of the potential risks of signing a broadband ROE agreement without expert advice:

1. Unfavorable Contract Terms

Broadband providers often structure ROE agreements to heavily favor their interests. Without an experienced consultant advocating for you, it’s easy to agree to terms that are less favorable for your property. Long contract durations, restrictive renewal clauses, and limited flexibility can tie you to a single provider, leaving you with little room to negotiate better deals in the future or to adjust the agreement to meet evolving needs. An advisor can help ensure that the contract includes terms that protect your long-term interests and offer room for renegotiation.

2. Loss of Control Over Infrastructure

In some ROE agreements, broadband providers may seek control over key infrastructure elements within your building. Without careful attention to the terms, you could inadvertently grant the provider too much control, limiting your ability to make changes or improvements to your building’s connectivity infrastructure in the future. This can become particularly problematic if technology evolves, and your property is left unable to adapt due to restrictive contract terms. Advisors can help ensure that the agreement gives you the flexibility to maintain control and make necessary changes as the industry evolves.

3. Legal and Regulatory Issues

Navigating the legal and regulatory aspects of broadband ROE agreements can be a challenge. Agreements may be subject to local laws and compliance standards that vary by jurisdiction. Without the proper legal and regulatory knowledge, you may unintentionally agree to terms that violate these rules or expose your property to unnecessary risks and liabilities. Experienced advisors can support your legal team through the regulatory landscape, ensuring that your agreements comply with all relevant legal requirements and protect your interests.

4. Missed Opportunities for Revenue Sharing

Broadband ROE agreements can often present opportunities for financial gain, such as revenue-sharing models with the provider. However, without a skilled negotiator on your side, you may miss out on these opportunities or agree to terms that undervalue your property’s potential. Advisors can help you identify and negotiate fair compensation for allowing broadband access to your property, ensuring you get the most out of the deal.

Conclusion: Don’t Risk Going It Alone

Broadband ROE agreements are complex and, without expert guidance, property owners can end up with unfavorable terms that limit their flexibility, expose them to legal risks, or result in missed financial opportunities. By engaging a knowledgeable advisor or consultant, you can navigate these agreements with confidence, secure more favorable terms, and protect your property’s long-term interests. Don’t leave your property’s broadband infrastructure to chance—partner with a Russ-Hobart to ensure that your agreements are beneficial now and in the future.