Riverhead, NY, located on the North Shore of Long Island, is facing another federal lawsuit after it raised the rents it charged to wireless providers who leased space on the town’s water towers. The latest lawsuit was made by Sprint Spectrum Realty Company against the Riverhead Water District on February 24. Previous lawsuits, made by Metro PCS and T-Mobile Northeast, were initiated last year. Sprint claims the change, made in 2013, is a breach of contract. It leases space on three separate towers across the town.
In 2013, the Riverhead Town Board, which also operates the Riverhead Water District, hired Bench Strength Partners to examine its cell tower leases and to try and increase the amount paid to the town if it decided the town was not charging enough. According to Riverhead News-Review, “Sprint claims that BSP refused them access to the towers and refused to allow them to make equipment upgrades unless Sprint agreed to shorten its current lease, eliminate its current right of cancellation if certain events occur, and to pay ‘substantially more rent to the Riverhead Water District by upwards of 78 percent of the current rental amounts.’”
Riverhead News-Review also states BSP’s contract with the town stipulates the amount BSP is paid will be determined by the amount of additional money it make for the town by renegotiating with the companies.
In the lawsuit, Sprint explains it needs to access the towers to upgrade the current equipment, which is only compatible with 3G technology. Sprint’s upgrades would make them compatible with 4G LTE technology, which can operate at higher speeds and boost signal power.
Sprint’s original lease said it will have the right to make improvements to equipment. Since the carrier is not being allowed to make those changes, Sprint is accusing Riverhead of breach of contract. If the court agrees, the town will be forced to grant Sprint access to the three towers so it can upgrade equipment.
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