Red Flags For HOA Cable & Internet Agreements
Does Our Community Need To Sign a New Access Agreement
July 11, 2018
The Basics of Fiber Networks for Community Associations
November 27, 2018Whether your community is entering a bulk agreement for telecom services or allowing service providers access to your association’s private property, here are a few red flags to watch out for:
1) Contracts lasting longer than 10 years. Although some providers need lengthy protections if they are building a new fiber optic system, it rarely makes sense to enter a contact longer than 10 years.
2) Annual escalators above 4%. As of 2018, it rarely makes sense to enter a contact with an annual rate increase that exceeds 4%.
3) Contract Terms that are contingent on uncertain events like the final C/O in the community or network activation. Always ask for a definitive term!
4) Perpetual easements. Make sure the easement is tied to the length of the service agreement in some fashion.
5) Rights of first refusal. ROFRs should be viewed with skepticism. Entering a contract now should not box in your association into successive agreements.
Ryan McCarty
Ryan McCarty serves as In-House Counsel for the Communications Consulting Group and is licensed to practice law in Florida, New Jersey, and Pennsylvania. He holds a law degree from Rutgers University and provides legal support for CCG and its clients during each phase of the telecommunications contracting process. He focuses his legal practice in the field of telecommunications and has extensive experience with bulk service contracts and right of entry agreements.
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