Victorian Statutory Revaluation
Valuer-General Victoria and Municipal Group of Valuers Guidelines on Valuation Methodology for Telecommunications Introduction These guidelines are to be used when valuing telecommunications telecommunications for rating and taxation taxation purposes. The guidelines need to be used in conjunction conjunction with the General Provisions for Specialist Guidelines, which refer to the general requirements, legislation and procedures relating to all statutory valuations.
Denition The following definition of a Telecommunications Telecommunications network is contained in Section 7 of the Telecommunications Telecommunications Act 1997 "telecommunications network" means a system, or series of systems, that carries, or is capable of carrying carrying,, communications communications by by means of guided and/or unguided electromagnetic energy. An acceptable classication for Telecommunication Towers and Aerials is contained in the Australian Valuation Valuation roperty !lassication !odes "AV!!#. "AV!!#. $and on which a tower and associated infrastructure used for the transmission or telecommunication signals are constructed or aerials a%xed to buildings "without a footprint# and which form part of a larger property..
A definition for a Telecommunications Telecommunications acility is Victorian Victorian Planning Scheme Provisions 1 as follows $and used to accommodate any part of the infrastructure of a Telecommunications networ&. 't includes any telecommunications line, equipment, apparatus, telecommunications tower, mast, antenna, tunnel, duct, hole, pit, pole, or other structure or thing used, or for use in or in connection with a Telecommunications 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 ermit Towers Towers + -anmade structures structures that are are always taller than they are are wide, usually by a signicant margin, generally built to ta&e advantage of their height and can stand alone or as part of a larger structure. 'n the context of telecommunications a tower requires a planning permit to be erected and is usually either a )/0 or a 0T/. -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 Terms Guidelines on Valuation Valuation Methodology for Telecommunications August 2011
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Victorian Statutory Revaluation 1. Low Impact Facilities + -aximum )eight 5.2 metres that do not require lanning Approval. $owimpact facilities are generally small radio communications antennae and dishes 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 maximum height of a lowimpact facility is 5.2 metres, but only when sited in a rural or industrial 7one. There are are two general categories for for the valuation of telecommunication telecommunication facilities8 Micro + 9mall Aerials *. Aerials can be located on the side of a pole or attached to or on top of buildings. The following are examples of -icro sites
1.
Macro + also &nown as !-T9 !ellular -obile Telecommu Telecommunications nications 9ite. -acro sites are towers and rooftop antennas. This category also includes includes )/0s + large towers towers in excess of of 24 metres with multiple microwave dishes. dishes. The following are are examples of -acro -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 telecommunication systems are twoway with a single device acting as both a transmitter and receiver or transceiver. (or example, a mobile phone is a transceiver. Guidelines on Valuation Methodology for Telecommunications August 2011
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Telecommunication over a phone line is called point to point communication because it is between one transmitter and one receiver. Telecommunication through radio broadcasts is called broadcast communication because it is between one powerful transmitter 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 a microwave lin&. 9ince microwaves are highly susceptible to attenuation by the atmosphere "especially during wet weather#, the use of microwave transmission is limited 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 varied continuously with respect to the information. 'n a digital signal, the information is encoded 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 each other is &nown as a networ&.
A channel is a division in a transmission medium so that it can be used to send multiple streams of information. (or example, a radio station may broadcast at @5.* -)7 while another radio station may broadcast at @.2 -)7. 'n this case, the medium has been divided by frequency and each channel has received a separate frequency to broadcast on. Alternatively, one could allocate each channel a recurring segment of time over which to broadcast B this is &nown as timedivision multiplexing and is sometimes used in digital communication.
Modulation
The shaping of a signal to convey information is &nown as modulation. -odulation can be used to represent a digital message as an analogue waveform. This is &nown as &eying and several &eying techniques exist "these include phaseshift &eying, frequencyshift &eying and amplitudeshift &eying#. 0luetooth, for example, uses phaseshift &eying to exchange information between devices.
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Victorian Statutory Revaluation
Additional Victorian legislation and cases applica"le to telecommunications 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, capital improved 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 <0!
Guidelines on Valuation Methodology for Telecommunications August 2011
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Victorian Statutory Revaluation 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 television broadcasting and 'nternet services, including research, guidelines and reviews. Post + olicies and regulations for the postal industry and information about the history 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 + 5@.1
Telecommunication Aerial + 5@.3
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Victorian Statutory Revaluation
:ental ;uestionnaire and property information – specic re;uirements applica"le to telecommunications 'n addition to the general requirements for rental information, the following is a guide to the specic information required for telecommunications. Property Data 1.
Address/Unit number
2.
Tower/pole height
3.
Total number of arriers
!.
"lans/m ap s
#.
"ole $% &u mber
metres (approximately)
Land lease details 'ease details
arrier
arrier
arrier
arrier
Ground rent per annum Rent type
$
$
$
$
Outgoings amount per annum paid by tenant Outgoings amount per annum paid by owner
$
$
$
$
$
$
$
$
arrier
arrier
arrier
arrier
Commencement date Lease term Rent review method Date of last rent review Net Gross
Net Gross
Net Gross
Net Gross
Occupancy Lease Particulars 'ease details
Commencement date Lease term Rent review method Date of last rent review Rent per annum
$
Rent type Outgoings amount per annum paid by tenant Outgoings amount per annum paid by owner
$ Net Gross
$ Net Gross
$ Net Gross
Net Gross
$
$
$
$
$
$
$
$
*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 of the propertys!"
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Victorian Statutory Revaluation
3roperty inspection – specic re;uirements applica"le to telecommunications *.
'nspect telecommunication facility and the number of carriers in the case of a towerpole.
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 on telecommunications facilities by district and postcode.
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Victorian Statutory Revaluation
Methodology !ite #alue and capital impro#ed #alue
!V methodology
The primary approach used is capitalisation of ground rent. A :round =ent is a rent per annum for the use of the land to construct a tower. The primary evidence to use is lettings and sales of comparable properties analysed to indicate appropriate mar&et rentals and capitalisation rates. IV methodology
The primary approach to !apital 'mproved Value is a summation approach. The added of the improvements including plant and equipment is added to the 9ite Value to 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 are multiple licences that attached to the pole. 'f a telecommunications facility occupies a portion of a parcel it is considered to be a separate occupancy and should be valued accordingly. 'f the telecommunications facility is occupied by more than one carrier or is on a rooftop, then the site value and capital improved value attributed to the tower may have to be apportioned in accordance with 9ection 1 "3# of the Valuation of $and Act. =efer to 6ccupancy in the :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 plant and 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 m ay be the best indicator. The chec& method by summation can be derived by ascertaining the !'V by direct comparison the deducting the added value of the tower to arrive at a site value. Valuation considerations •
•
•
•
the !'V should have regard to plant and equipmentF =efer to specialist guideline paper on plant and equipment. in determining the added value for plant and equipment "i.e. pole and shed etc.# a depreciated replacement cost can be utilised. =efer also to sales analysis brea& up of components if available. in the event that passing ground rents are provided and there are no other current mar&et rents to suggest otherwise, the passing rents can be a guide. 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 maret information! 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 !ap =ate Total !V
<17/.. pa *2H
apital Impro#ed Value
!arrier A
G*4,444 pa
Total :ross =ent $ess 6utgoings $et :ent !ouncil =ates (AV
G*4,444 pa G*,444 pa <47... pa G244 pa <47/..pa
IV "y !ummation 9ite Value ole 9hed IV=
Assessment !arrier A
!V G 24,444
Guidelines on Valuation Methodology for Telecommunications August 2011
G 24,444 G I4,444 G 14,444 <2/.7...
IV G *24,444
$AV G @,244
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Victorian Statutory Revaluation
"xample B $ Three Carriers on a Monopole !ite Value
:round =ent >et !arrier A !arrier 0 !arrier ! Total $et :ent !ap =ate Total !V Adopt !V
G@,444 G*4,444 G*4,I44 <47>.. pa *2H <24>7888 <..7...
!arrier A + :ross =ent $ess 6utgoings $et :ent !ouncil =ates (AV
G*4,444 G*,444 <47... G244 <47/..
!arrier 0 + :ross =ent $ess 6utgoings $et :ent !ouncil =ates (AV
G**,444 G*,444 <2.7... G244 <2.7/..
!arrier ! + :ross =ent $ess 6utgoings $et :ent !ouncil =ates (AV
G*1,444 G*,144 <2.7>.. G;44 <227/..
(AV ?hole IV "y !ummation 9ite Value ole 9hed "allow 3 sheds# IV
Apportionment on CAV Assessment !arrier A !arrier 0 !arrier !
<@27/..
G 144,444 G @4,444 G 22,444 <@9/7...
!V G 54,444 G 5;,444 G ;3,444
Guidelines on Valuation Methodology for Telecommunications August 2011
IV G *4,444 G **2,444 G *15,444
$AV <47/.. <2.7/.. <227/..
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Victorian Statutory Revaluation "xample C $ &ooftop #ntenna on existing 'uilding with a shop on the ground (oor! o)ce on the second (oor and antenna on rooftop* !ite Value
0ased on 7oning and usual land considerations
G124,444
apital Impro#ed Value
9hop + :ross =ent $ess 6utgoings $et :ent !ouncil =ates (AV
G34,444 G1,244 <17/.. G*,244 <47...
6%ce + :ross =ent $ess 6utgoings $et :ent !ouncil =ates (AV
G14,444 G*,244 <2>7/.. G*,444 <247/..
Telco + :ross =ent $ess 6utgoings $et :ent !ouncil =ates (AV (AV ?hole
G*2,444 G*,444 <297... G244 <297/.. <8@7...
IV Total :ross =ent )ess Total Outgoings Total $et :ent ap :ate !'V =ounded
G52,444
Apportionment on CAV !'V 9hop !'V 6%ce !'V Telco
G 54,444 G 3*4,444 G 134,444
9V 9hop 9V 6%ce 9V Telco
G **2,444 G ;;,444 G 2I,444
Assessment 9hop 6%ce Telco
!V G **2,444 G ;;,444 G 2I,444
Guidelines on Valuation Methodology for Telecommunications August 2011
IV G 54,444 G 3*4,444 G 134,444
$AV <47... <247/.. <297/..
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Victorian Statutory Revaluation
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
Telecommunication facilities that may +e developed ithout the need for a planning permit,
a microcell - an antenna and associated +o. hich supplements the mo+ile netor/ in heavy usage areas an a'ove ground housing - an a+ove ground euipment shelter housing telecommunication infrastructure including, a pillar a ca+inet a pedestal an elevated oint minor street furnishings mar/er posts a remote integrated multiple.er a temporary facility - a telecommunications facility that does not e.ist on the land for more than a total of four months in any 12 month period an underground ca'le or duct 3 is placed into the ground +y trenching or direct +urial 4nce in the ground5 the ground is reinstated and the ca+le cannot +e seen a 'oring ca'le 3is a process here ne ca+le is run through ducts hich already e.ist5 or is +ored predominately underground from one end point to another a radio communications dish 3 is a circular dish antenna used to send and receive radio freuency communications a tower 3includes any similar structure supporting antennas a telecommunication facility located inside a 'uilding! structure or tunnel 3 hich is included in or integrated in such a ay as to have the appearance of +eing part of the +uilding5 structure or tunnel a telecommunication facility located on a roof 3 using rooftops of appropriate height avoids the need for a toer or similar structure to +e +uilt A facility on the roof of a +uilding is generally less intrusive than a ne toer and is therefore encouraged as a design solution to minimise visual impact a telecommunications facility attached to infrastructure within a road +one 3 carriers are encouraged to use e.isting infrastructure along maor highays5 arterial roads and freeays to support telecommunications facilities providing coverage along these roads to avoid the need for additional structures an optical ,'re ground wire on high voltage transmission towers 3 an electricity ground ire ith an optical 6+re core located in the ground ire position of high voltage electricity toers − − − − − − −
Guidelines on Valuation Methodology for Telecommunications August 2011
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Victorian Statutory Revaluation 7arriers are encouraged to co-locate facilities herever practical This provision encourages colocation here an e.isting structure has the capacity to cope ith the additional reuirements and com+ined euipment of more than one carrier or the com+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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Victorian Statutory Revaluation
Installation of Telecommunications 5acilities – A Guide for )ocal Go#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 matters Telecommunications facilities speci6ed in the Telecommunications Act 1%%'5 or in a ministerial determination made under the Act5 are e.empt from local planning las and can +e installed ith authorisation under 7ommonealth la The types of facilities covered +y the Act and the determination include smaller radio communications antennas and dishes5 and underground ca+ling Telecommunications facilities that are not covered +y the Telecommunications Act or a determination are li/ely to reuire approval under state or territory la5 usually at the local government level The types of facilities that reuire local council planning approval include +road+and overhead ca+le and all freestanding mo+ile phone toers Accordingly5 telecommunications facilities are governed +y legislation at the local5 state and federal government levels5 depending on the type of facility and the :oning of the site Low-Impact Facilities !icensed telecommunications carriers are authorised +y the Telecommunications Act to install a limited range of facilities ithout see/ing state5 territory or local government planning approval The most common of these are /non as ;lo-impact; facilities hich are speci6ed in the Telecommunications 8!o-impact y contrast5 mo+ile phone toers are generally 2$ to "0 metres high The !o-impact
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aility Panel# yagi or other lie antenna
&otes
ommerial
$ndustrial 0ural
Low impact
Low impact
Low impact Low impact
&ot low impact
&ot low impact
Low impact Low impact
Low impact
Low impact
Low impact Low impact
&ot low impact
&ot low impact
Low impact Low impact
Low impact
Low impact
Low impact Low impact
2rench# direct Low impact burial# bore or directional drill hole
Low impact
Low impact Low impact
% &"'m long
−
with % (m mounting arm −
Array of antenna
0esidential
colour matched or agreed
% )"*m long
−
with % &m mounting arm omnidirectional only % *m apart
−
Radio communications dish
−
−
−
*xtension to tower
% +"&m diameter with % &m protrusion attached to supporting structure colour, matched or agreed
−
% *m
−
ma-" of one e-tension
.nderground housing
& s/m OR −
−
Underground abling
Pit surface %
−
−
−
0anhole surface area % & s/m OR .nderground e/uip shelter1housing surface area % & s/m
New trench# bore or directional drill hole sub3ect to dimensional and access to property re/uirements
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Victorian Statutory Revaluation aility
&otes −
"ubli pay phones
−
0esidential
ommerial
$ndustrial 0ural
Low impact
Low impact
Low impact Low impact
0ay utilise pre,e-isting trench
4olely for carriage and content services
=This is a guide only Please refer to the TelecommunicationsB!o impact facilitiesB=etermination 1%%' regarding compliance
"xemption from state and territory planning laws A carrier ho complies ith the Telecommunications Act hen installing a lo-impact facility is immune from some state and territory las5 including ton planning5 use of land5 tenancy and commercial and domestic poer supply l as The Act also oCers immunity from environmental assessment and protection las5 ith the e.ception of las pertaining to the protection of places or items of signi6cance to the cultural heritage of A+original persons or Torres Strait )slanders5 for installation or maintenance 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 is necessary 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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Victorian Statutory Revaluation 7arriers have the right to maintain a telecommunications facility and may do anything necessary for the purpose of maintaining a facility including an alteration5 removal or repair of a facility
.hat are carriers0 responsi'ilities/
The Telecommunications 7ode of Practice 1%%' 8amended in 20029 sets out in detail carriers; rights and responsi+ilities hen inspecting landE installing lo-impact facilities5 su+scri+er connections and temporary defence facilitiesE and maintaining facilities The 7ode of Practice reuires that5 hen underta/ing these activities5 carriers must ta/e all 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 +eganE protect 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 and complies 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 u nderta/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 lists operational facilities )f a facility is currently +eing installed then it is unli/ely to appear on the register Most carriers forard their registrations to A7MA in +atches at regular intervals5 hich means that the register may not list all radio communications facilities current at any particular time
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