Farmers warned against accepting 'one-sided' telecoms deals

A new electronic communications code will become law on 28 December 2017
A new electronic communications code will become law on 28 December 2017

Farmers and landowners have been urged to refuse any template telecoms agreement for siting a mobile phone mast on land after the new Telecoms Code takes effect on 28 December 2017.

There are fears the terms of any such agreement could leave farmers and landowners at a significant disadvantage.

A new electronic communications code, introduced as part of the Digital Economy Act 2017, will become law on 28 December 2017.

The code is a statutory scheme of rights and obligations which enables operators to enter land against the landholders wishes in order to install, erect, maintain and use any form of electronic communications apparatus.

It allows operators to obtain rights over land and to remain on land against the landowners wishes.

'One-sided'

Robert Paul, one of the UK’s leading experts on the telecoms market who works for Strutt & Parker, said mobile phone operators have been trying to agree a standard lease document with the input of a body of landowners’ representatives ahead of the new code coming into force.

“They argue that this will simplify the process of getting agreements in place, which will help them as they try to speed up the rollout of mobile and broadband services,” Mr Paul explained.

“However, given the NFU, CLA and other industry bodies have recently withdrawn from the process, it is likely that any agreement will be one-sided in favour of the operators and not a true reflection of what rights the code actually gives to them.

“In our view, the concept of a standard agreement for telecoms sites is flawed anyway. The industry does not operate on standard lease terms now – it never has done, and there is no reason why it should start happening now.”

'Aggressive approach'

Mr Paul said he had already seen indications that operators intend to take a more aggressive approach to the acquisition and handling of sites once the new code takes effect.

He said it is vital that site providers are aware of their rights under the new arrangements.

He added: “The operators interpret the code in a very different way to how we would. For example, the new code does aim to make it easier for operators to upgrade and share their equipment with other operators to help increase coverage.

“But this does not mean that an operator has unfettered rights under the new code to add equipment installed on a site, much as operators would like people to believe that. The code does give them greater powers, but they have to jump through a number of hoops first.”

Rents

There is also the issue of rents which Strutt & Parker do not see tumbling in the way the operators predict.

Strutt & Parker’s most recent telecoms survey showed that the average greenfield rent for a mobile phone mast was £6,000 per year, but Cornerstone Telecommunications Infrastructure Limited (CTIL) are suggesting payments based on compensation only and paying just a few thousand pounds as a one-off payment for a long-term lease.

Mr Paul continued: “Landowners, particularly those in remote rural areas, are as keen as anyone to see improved mobile and broadband connections, but they cannot be expected to sign up without question to agreements that could have a significant impact on their normal business operations.

“It is important that site providers are aware that even though the new Telecoms Code does give the operators greater powers, landowners still have the right to negotiate around the terms of any agreement.

“If approached by an operator asking to inspect a potential site, we would advise property owners to agree terms first before granting entry.

“Those with existing telecoms equipment on their property should also carefully consider their position following the introduction of the new code.”