The race to deploy 5G infrastructure has opened up new uses for the roofs of restaurants, hotels, residential buildings, and even hospitals and churches. These roofs are quickly becoming the main real estate target for telecom leaders eager to establish 5G technology in densely populated areas.

In fact, next-generation wireless deployment will become one of the largest rental income distributors in the United States in the next five years, creating huge opportunities for landlords and other business owners.

The Biden administration has made expanding the country's 5G infrastructure a national priority. The $1.2 trillion bipartisan infrastructure package allocated $65 billion to expand broadband coverage to rural and underserved communities. Although 5G has speed and power compared to other wireless technologies, its range is much shorter, reaching only about 1,500 feet at most.

Due to the reduced antenna height of next-generation wireless networks, 5G technology is particularly suitable for deployment on the roofs of existing buildings.

In addition to major wireless communication providers, new entrants to the 5G deployment race also include traditional cable companies and large technology companies. These companies are expected to jointly invest US$275 billion to deploy their 5G macro base stations and small base stations. The only effective and efficient way to deploy the large number of deployment sites required for deployment is to utilize existing buildings. In other words, the solution to the 5G race is to adopt a rooftop deployment strategy.

Historically, the wireless communications market has been challenging for real estate and other business owners. In the past, long-term agreements signed between wireless operators and tower companies were often detrimental to owners.

In many communities, there is strong opposition to the construction of new towers. In addition, the process of construction, zoning and permitting can be very time-consuming. However, due to the reduced antenna height of next-generation wireless networks, 5G technology is particularly suitable for deployment on the roofs of existing buildings. Now, major institutional commercial real estate owners are more capable than tower operators to provide operators with faster and more efficient solutions to their wireless real estate needs.

The rooftop deployment strategy provides a mutually beneficial solution for 5G operators and owners. Operators have achieved the goal of deploying infrastructure as quickly as possible in busy traffic areas, while owners have obtained financial benefits by renting roofs and monetizing existing buildings in new ways.

The impact on real estate owners' net operating income and income generated during the potential 30-year lease term can be substantial, thereby increasing their access to capital. In addition to renting out roofs to operators for a fee, landlords can also provide tenants with better services through high-speed broadband connections.

The deployment of 5G infrastructure is critical for the United States to keep pace and maintain international competitiveness. Of course, 5G is about faster connections, greater capacity and zero latency, but it is mainly about driving innovation, which will enable a range of commercial services, from the expansion of autonomous vehicles and telemedicine to manufacturing and agriculture. Efficiency and improved supply chain management.

Taking all these benefits into account, 5G is expected to contribute more than US$1.5 trillion to US GDP by 2025.

The Biden administration also identified 5G technology and universal broadband as an economic equalizer for rural America. According to the policy statement, compared with urban residents, rural areas in the United States are more than 10 times more likely to be unable to use the reliable Internet.

In the recently signed infrastructure law, the President and Congress prioritized investment in rural broadband infrastructure to bridge the digital divide and expand Internet access to these underserved areas. Because of this focus, landlords who own properties in rural areas can benefit more from the expansion of 5G infrastructure.

The road to building a strong 5G network in the United States will be a long one. Although this is not necessarily a deterrent, owners who work with 5G providers and wireless operators should also be informed and aware of the network security considerations of the technology, as they are setting up infrastructure and providing wireless networks to their tenants.

In a recent survey conducted by Aon of more than 2,300 risk managers and other executives, cyber risk was ranked as the world's largest current and predicted future risk. Enhanced connectivity and 5G are the future, which means that the cybersecurity industry must continue to innovate and expand its use of machine learning and artificial intelligence to enhance defenses.

We have also seen the creation of organizations such as building cybersecurity to help provide guidance and frameworks to improve cybersecurity resilience in the real estate industry.

In order for owners to effectively monetize the roof and participate in the 5G competition, the government and private companies must continue to cooperate to accelerate the deployment of 5G infrastructure, including timely review of 5G installation requests.

In addition, more work is needed at the state and local levels to improve the zoning and licensing process for 5G antenna deployment. Many state legislatures are already considering legislation to better formulate and formulate 5G strategies for their constituencies, which will also provide new opportunities for landlords.

To promote the 5G competition, there is more policy and technical work to be done, but the income opportunities for owners are immediate and tangible. For restaurant owners or hoteliers who have recovered from the economic slowdown of the COVID-19 pandemic, monetizing the roof may be the difference between closing stores and making profits.