Lime Agreement: What Is It and How Does It Work?

Lime agreement is a term commonly used in the telecom industry to describe a co-location agreement between operators of telecommunication equipment. In simple terms, it is an agreement between two or more telecom companies to share the same transmission tower, antenna or shelter to reduce the cost of deployment and maintenance of their equipment. This type of agreement has become increasingly popular in recent years as telecommunication companies seek to save costs and optimize their network coverage and capacity.

How Does Lime Agreement Work?

Under a lime agreement, telecom companies share the infrastructure facilities required for their respective network operations. This includes the tower or pole, antenna, feeder cable, and shelter. The parties involved agree to pay for their respective costs depending on the type of agreement entered into. There are different types of lime agreements, each with its own unique terms and conditions. Some of the common ones include:

1. Master Lease Agreement (MLA): This type of agreement is between the tower owner and one or more tenants who wish to lease space on the tower. It typically covers a long-term lease of several years, and the tenants pay rent for the space they occupy.

2. Sub-Lease Agreement (SLA): A sub-lease agreement is between the MLA tenant and another tenant who wishes to sub-lease space they have leased from the tower owner. The sub-tenant pays a sub-lease fee to the MLA tenant.

3. Co-Location Agreement (CLA): A co-location agreement is between two or more telecom companies who wish to share the same space on a tower or pole. The parties involved agree to share the costs of the infrastructure, including the tower, antenna, and shelter.

Advantages of Lime Agreement

There are several advantages of entering into a lime agreement, including:

1. Reduced deployment costs: Telecom companies can save significant costs by sharing the same infrastructure instead of deploying their own equipment. This includes costs associated with site acquisition, survey, and construction.

2. Network optimization: Lime agreements provide better network coverage and capacity by enabling operators to strategically place their equipment on a shared tower or pole.

3. Regulatory compliance: By sharing infrastructure, operators can meet regulatory requirements for coverage and capacity while preserving the environment and reducing the visual impact of telecom equipment.

Conclusion

In conclusion, lime agreement is a popular term in the telecom industry, referring to a co-location agreement between two or more telecom companies. It enables operators to share infrastructure, reduce deployment costs, optimize network coverage and capacity, and meet regulatory requirements. There are different types of lime agreements, including master lease agreements, sub-lease agreements, and co-location agreements, each with its own unique terms and conditions. Telecom companies can benefit from a lime agreement by saving costs, optimizing their network coverage and capacity, and complying with regulatory requirements.