VGV MGV Telecommunications August-11 Accessible

7/25/2019 VGV MGV Telecommunications August-11 Accessible

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Victorian Statutory Revaluation

Valuer-General Victoria and Municipal Group of Valuers

Guidelines on Valuation Methodology forTelecommunications

Introduction

These guidelines are to be used when valuing telecommunications for rating and taxationpurposes.

The guidelines need to be used in conjunction with the General Provisions for SpecialistGuidelines, which refer to the general requirements, legislation and procedures relating toall statutory valuations.

Denition

The following definition of a Telecommunications network is contained in Section 7 of theTelecommunications Act 1997

"telecommunications network" means a system, or series of systems, that carries, or is

capable of carrying, communicationsby means of guided and/or unguided electromagnetic

energy.

An acceptable classication for Telecommunication Towers and Aerials is containedin the Australian Valuation roperty !lassication !odes "AV!!#.

$and on which a tower and associated infrastructure used for the transmission ortelecommunication signals are constructed or aerials a%xed to buildings "without afootprint# and which form part of a larger property..

A definition for a Telecommunications acility is Victorian Planning Scheme Provisions1as

follows$and used to accommodate any part of the infrastructure of a Telecommunicationsnetwor&. 't includes any telecommunications line, equipment, apparatus,telecommunications tower, mast, antenna, tunnel, duct, hole, pit, pole, or other structureor thing used, or for use in or in connection with a Telecommunications networ&.

(or the purpose of planning, telecommunications are classied as either )igh 'mpact or$ow 'mpact (acilities.

*. High Impact Facilities+ Towerspole that require a lanning ermitTowers + -anmade structures that are always taller than they are wide, usually bya signicant margin, generally built to ta&e advantage of their height and canstand alone or as part of a larger structure. 'n the context of telecommunications atower requires a planning permit to be erected and is usually either a )/0 or a0T/.

-obile phone towers are generally 12 to 34 metres high.

A )/0 is a larger tower in excess of 24 metres.

A 0T/ is a smaller tower in the range of 12 to 34 metres.

1 !ictorian "lanning "ro#isions $lause 7% land &se TermsGuidelines on Valuation Methodology for TelecommunicationsAugust 2011 Page 1 of 21
http://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#carryhttp://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#communicationshttp://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#communicationshttp://www.austlii.edu.au/au/legis/cth/consol_act/ta1997214/s7.html#carry


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1. Low Impact Facilities+ -aximum )eight 5.2 metres that do not require lanningApproval.$owimpact facilities are generally small radio communications antennae anddishes erected on existing towers or buildings that are designed to be unobtrusive.6ther types of lowimpact facility include underground cables, public telephones,telecommunications pits in footpaths and colocated facilities. The maximumheight of a lowimpact facility is 5.2 metres, but only when sited in a rural orindustrial 7one.

There are two general categories for the valuation of telecommunication facilities8*. Micro+ 9mall Aerials

Aerials can be located on the side of a pole or attached to or on top of buildings. Thefollowing are examples of -icro sites

1. Macro+ also &nown as !-T9 !ellular -obile Telecommunications 9ite. -acrosites are towers and rooftop antennas.This category also includes )/0s + large towers in excess of 24 metres with multiplemicrowave dishes. The following are examples of -acro sites8

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Other denitions and industry terms

Towers three types of ommunication Towers

Guyed Toer+a single column steel structure supported by several guyed

wires. These towers require a relatively large land area to accommodate the

guy wires. :uyed towers tend to be taller than lattice or monopole towers.

!attice Toer+a multiple column structure that is reinforced by crossbeams. A

lattice tower is frequently less than ;2 metres tall.

Monopole+ a singlepole tower which is usually shorter than the guyed or the

lattice towers. -onopoles occupy less space then the other towers and are

frequently well suited for large metropolitan areas.

Telecommunication !ystems

A telecommunication system consists of three basic elements8

a transmitter that ta&es information and converts it to a signal a transmission medium that carries the signal, and a receiver that receives the signal and converts it bac& into usable information.

(or example, in a radio broadcast the broadcast tower is the transmitter, free space is

the transmission medium and the radio is the receiver. 6ften telecommunicationsystems are twoway with a single device acting as both a transmitter and receiver ortransceiver. (or example, a mobile phone is a transceiver.

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Telecommunication over a phone line is called point to point communication becauseit is between one transmitter and one receiver. Telecommunication through radiobroadcasts is called broadcast communication because it is between one powerfultransmitter and numerous receivers.

DA! Distri"uted Antenna !ystems

odes "=A>s# or microcells,each with a multiband antenna, which can be distributed via existing infrastructure.

These types of antenna are usually located within buildings.

Microwa#e transmission

-icrowave Transmission refers to the technique of transmitting information over amicrowave lin&. 9ince microwaves are highly susceptible to attenuation by theatmosphere "especially during wet weather#, the use of microwave transmission islimited to a few contexts +

it is only suitable over line of sight transmission lin&s provides good bandwidth a?ected by rain, vapor, dust, snow, cloud, mist and fog, heavy moisture not suitable for lin&s where an obstacle is in between the transmitter and

receiver.

Analogue or Digital

9ignals can be either analogue or digital. 'n an analogue signal, the signal is variedcontinuously with respect to the information. 'n a digital signal, the information isencoded as a set of discrete values "for example ones and 7eros#.


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$etwor%s

A collection of transmitters, receivers or transceivers that communicate with eachother is &nown as a networ&.


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Additional Victorian legislation and cases applica"le totelecommunications

The following Acts are rele#ant to this topic&

!ocal Government Act 1%&%"9ections *2 and *25#

Telecommunications Act 1%%'"!ommonwealth# (lectricity )ndustry Act 2000 "9ection @# Planning and (nvironment Act 1%&'

ourt cases&

The following court case is applicable to the telecommunications industry.

'nited (nergy )imited # Monash *)and Valuation+ ,../0 VAT 12

9ection 11 Valuation of $and Act *@54 + referral of objection to site value, capitalimproved value and net annual value + consideration of planning controls

Other rele#ant material&

Telecommunication ode of 3ractice 2441

Telecommunication *)ow Impact 5acility+ Determination 2441

Australian ommunications and Media Authority *AMA+

The Australian !ommunications and -edia Authority "A!-A# is the government body

responsible for the regulation of broadcasting, the 'nternet, radio communications and

telecommunications.

A!-A also administers the technical standards compliance regime for

electromagnetic compatibility "C-!#, radio communications, electromagnetic

radiation "C-=# and telecommunications. 't also supports a full range of radio

communications services through radio communications licensing.

The A!-A website is www.acma.gov.au .

=elevant codes under this website are8

etwor& 'nfrastructure

lacement of -obile hone Towers

The -obile hone >etwor& 'nfrastructure !ode and $ocal :overnment.

A register of radio communication licences can be found at

http8web.acma.gov.auplsradcomregisterDsearch.mainDpage

Department of 6road"and7 ommunications and the Digital (conomy

*D6D(+

The


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Communications and Technology+ =esources and news about telephone, 'nternet,broadband and '!T services for consumers and business. Also covers funding, policy,legislation, statistics, reviews, online security and contacts for industry bodies.

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Media and Broadcasting+ olicy and legislation regulating radio and televisionbroadcasting and 'nternet services, including research, guidelines and reviews.

Post + olicies and regulations for the postal industry and information about thehistory and administration of Australia ost.

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Identication of properties

Australian Valuation 3roperty lassication odes *AV3+

To appropriately categorise telecommunication in a municipality, refer to the Australian

Valuation roperty !lassication !odes "AV!!# available at www.dse.vic.gov.auvaluation.

The following codes apply to telecommunications8

Telecommunication Towers and Aerials *AV3 849+

/nspecied + 5@.*

Telecommunication Tower + [email protected]

Telecommunication Aerial + [email protected]

Guidelines on Valuation Methodology for TelecommunicationsAugust 2011 Page % of 21
http://www.dse.vic.gov.au/valuationhttp://www.dse.vic.gov.au/valuationhttp://www.dse.vic.gov.au/valuation


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:ental ;uestionnaire and property information specic re;uirementsapplica"le to telecommunications

'n addition to the general requirements for rental information, the following is a guide tothe specic information required for telecommunications.

Property Data

1. Address/Unit number

2. Tower/pole height metres (approximately)

3. Total number of arriers

!. "lans/maps

#. "ole $% &umber

Land lease details

'ease details arrier arrier arrier arrier

Commencement dateLease term

Rent review method

Date of last rent review

Ground rent per annum $ $ $ $

Rent type Net

Gross

Net

Gross

Net

Gross

Net

Gross

Outgoings amount per annum paidby tenant

$ $ $ $

Outgoings amount per annum paidby owner

$ $ $ $

Occupancy Lease Particulars

'ease details arrier arrier arrier arrier

Commencement date

Lease term

Rent review method

Date of last rent review

Rent per annum $ $ $ $

Rent type Net

Gross

Net

Gross

Net

Gross

Net

Gross

Outgoings amount per annum paidby tenant

$ $ $ $

Outgoings amount per annum paidby owner

$ $ $ $

*stimated ost of onstrution +ear of onstrution

,ther details onsidered rele-ant

Please include all other details in addition to the above! that you believe may affect the statutory values ofthe propertys!"



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3roperty inspection specic re;uirements applica"le totelecommunications

*. 'nspect telecommunication facility and the number of carriers in the case of atowerpole.

1. The 'nternet is a valuable resource including sites such as the =adio (requency>ational 9ite Archive www.rfnsa.com.au. This site will enable searches ontelecommunications facilities by district and postcode.

http://www.rfnsa.com.au/http://www.rfnsa.com.au/


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Methodology

!ite #alue and capital impro#ed #alue

!V methodology

The primary approach used is capitalisation of ground rent. A :round =ent is a rentper annum for the use of the land to construct a tower. The primary evidence to useis lettings and sales of comparable properties analysed to indicate appropriatemar&et rentals and capitalisation rates.

IV methodology

The primary approach to !apital 'mproved Value is a summation approach. Theadded of the improvements including plant and equipment is added to the 9ite Valueto derive the !'V.

A capitalisation of income approach may be adopted where a telecommunications

facility is in a multi tenanted building, or in addition to the ground leases there aremultiple licences that attached to the pole.

'f a telecommunications facility occupies a portion of a parcel it is considered to be aseparate occupancy and should be valued accordingly. 'f the telecommunicationsfacility is occupied by more than one carrier or is on a rooftop, then the site valueand capital improved value attributed to the tower may have to be apportioned inaccordance with 9ection 1 "3# of the Valuation of $and Act. =efer to 6ccupancy inthe :eneral rovision.

!ales Analysis

Ehen analysing sales the valuer should derive the value of the di?erent components

of the property by ascertaining the added value of any improvements including plantand equipment. =efer specialist guideline paper on plant and equipment.

The sale should be fully analysed on the basis of mar&et rentals. 'n most cases,however, limited lease details are disclosed and an analysed passing yield may bethe best indicator. The chec& method by summation can be derived by ascertainingthe !'V by direct comparison the deducting the added value of the tower to arrive ata site value.

Valuation considerations

the !'V should have regard to plant and equipmentF =efer to specialistguideline paper on plant and equipment.

in determining the added value for plant and equipment "i.e. pole and shedetc.# a depreciated replacement cost can be utilised. =efer also to salesanalysis brea& up of components if available.

in the event that passing ground rents are provided and there are no othercurrent mar&et rents to suggest otherwise, the passing rents can be aguide.

the CAV must be a minimum of 2 per cent of the !'V.

The methodology shown in the following examples can apply to residential, rural,commercial or industrial land.



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The information in the following examples is not indicative of any maretinformation! the income! rents and rates are for example purposes only.

"xample # $ %ne Carrier on a Monopole

!ite Value

:round =ent G;,244 pa

$et :ent


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"xample B $ Three Carriers on a Monopole

!ite Value

:round =ent >et!arrier A G@,444!arrier 0 G*4,444!arrier ! G*4,I44Total $et :ent .. pa!ap =ate *2HTotal !V 7888Adopt !V


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"xample C $ &ooftop #ntenna on existing 'uilding with a shop on theground (oor! o)ce on the second (oor and antenna on rooftop*

!ite Value

0ased on 7oning and usualland considerations

G124,444

apital Impro#ed Value

9hop + :ross =ent G34,444$ess 6utgoings G1,244$et :ent


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Industry information

Telecommunications Industry Om"udsman + The Telecommunications 'ndustry

6mbudsman is a free and independent alternative dispute resolution scheme for small

business and residential consumers in Australia with unresolved complaints about their

telephone or internet services. Eebsite8 www.tio.com.au

ommunications Alliance + The aim of the !ommunications Alliance is to promote the

growth of the Australian communications industry and to protect consumer interests

through industry selfgovernance. Eebsite8 www.commsalliance.com.au

A ode of 3ractice for Telecommunications 5acilities in Victoria uly ..9+0elow is an extract from the !ode of ractice, issued by the Victorian


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7arriers are encouraged to co-locate facilities herever practical This provisionencourages colocation here an e.isting structure has the capacity to cope ith theadditional reuirements and com+ined euipment of more than one carrier or thecom+ined euipment of carrier8s9 and the operation of radio communications netor/such as to ay radio operators and community radio stations

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Installation of Telecommunications 5acilities A Guide for )ocalGo#ernment

0elow is an extract from the telecommunications section of the Australian!ommunications and -edia Authority website, wwwBacmaBgo#Bau

The Australian Government is responsi+le for regulating telecommunications mattersTelecommunications facilities speci6ed in the Telecommunications Act 1%%'5 or in aministerial determination made under the Act5 are e.empt from local planning las andcan +e installed ith authorisation under 7ommonealth la The types of facilitiescovered +y the Act and the determination include smaller radio communicationsantennas and dishes5 and underground ca+ling

Telecommunications facilities that are not covered +y the Telecommunications Act or adetermination are li/ely to reuire approval under state or territory la5 usually at thelocal government level The types of facilities that reuire local council planning approvalinclude +road+and overhead ca+le and all freestanding mo+ile phone toers

Accordingly5 telecommunications facilities are governed +y legislation at the local5 stateand federal government levels5 depending on the type of facility and the :oning of thesite

Low-Impact Facilities

!icensed telecommunications carriers are authorised +y the Telecommunications Act toinstall a limited range of facilities ithout see/ing state5 territory or local governmentplanning approval The most common of these are /non as ;lo-impact; facilities hichare speci6ed in the Telecommunications 8!o-impact


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aility &otes 0esidential ommerial $ndustrial 0ural

Panel# yagi orother lie

antenna

% &"'m long

with% (m mounting arm

colour

matched or agreed

Low impact Low impact Low impact Lowimpact

Array ofantenna

% )"*m long

with% &m mounting armomnidirectional only

% *m apart

&otlowimpact

&otlowimpact

Low impact Lowimpact

Radiocommunicationsdish

% +"&m

diameter with % &mprotrusion

attached to

supporting structure

colour,

matched or agreed


*xtension totower % *m

ma-" of one

e-tension

&otlowimpact &otlowimpact Low impact Lowimpact

.ndergroundhousing

Pit surface %

& s/m OR

0anhole

surface area % & s/mOR

.nderground

e/uip shelter1housingsurface area % & s/m


Underground

abling 2rench# direct

burial# bore ordirectional drill hole

New trench#

bore or directional drillhole sub3ect todimensional and access

to propertyre/uirements


Guidelines on Valuation Methodology for TelecommunicationsAugust 2011 Page 1% of 21


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aility &otes 0esidential ommerial $ndustrial 0ural

0ay utilise

pre,e-isting trench

"ubli payphones

4olely for

carriage and contentservices

Low impact Low impact Low impact Low

impact

=This is a guide only Please refer to the TelecommunicationsB!o impact facilitiesB=etermination 1%%'regarding compliance

"xemption from state and territory planning lawsA carrier ho complies ith the Telecommunications Act hen installing a lo-impactfacility is immune from some state and territory las5 including ton planning5 use ofland5 tenancy and commercial and domestic poer supply las

The Act also oCers immunity from environmental assessment and protection las5 iththe e.ception of las pertaining to the protection of places or items of signi6cance to thecultural heritage of A+original persons or Torres Strait )slanders5 for installation ormaintenance of facilities

.hat rights do carriers have/

Dnder the Telecommunications Act5 carriers have the folloing rights,

&ight to inspect land

7arriers may enter onto and inspect any land5 and do anything on the land5 that isnecessary or desira+le for the purpose of determining hether the land is suita+le

for their purposes

&ight to install low-impact facilities

7arriers have the right to install a lo-impact facility

&ight to maintain telecommunications facilities



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7arriers have the right to maintain a telecommunications facility and may doanything necessary for the purpose of maintaining a facility including analteration5 removal or repair of a facility

.hat are carriers0 responsi'ilities/

The Telecommunications 7ode of Practice 1%%' 8amended in 20029 sets out in detailcarriers; rights and responsi+ilities hen inspecting landE installing lo-impact facilities5su+scri+er connections and temporary defence facilitiesE and maintaining facilities

The 7ode of Practice reuires that5 hen underta/ing these activities5 carriers must ta/eall reasona+le steps to,

cause as little detriment5 damage and inconvenience as practica+leE

ensure that land is restored to a condition similar to its condition +efore the

activity +eganEprotect the environmentE

minimise interference ith pu+lic utilities5 roads and paths5 traFc and land useE

act in accordance ith good engineering practice and ensure that the design5

planning and installation of the facilities is in accordance ith +est practice andcomplies ith A7MA or industry codes or standardsE

protect the safety of persons and propertyE

co-locate facilities ith the e.isting facilities of other carriers or pu+lic utilities or

use pu+lic easementsE and

co-operate ith other carriers and pu+lic utilities ho are underta/ing similar

activities on the same land to minimise inconvenience and damage

How many radio communications facilities are within a council 'oundary/

All radio communications facilities including mo+ile phone antennas must +e licensed+y A7MA A7MA maintains a Register of Radio 7ommunications !icenses5 hich listsoperational facilities )f a facility is currently +eing installed then it is unli/ely to appearon the register Most carriers forard their registrations to A7MA in +atches at regularintervals5 hich means that the register may not list all radio communications facilitiescurrent at any particular time

VGV MGV Telecommunications August-11 Accessible

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