Shropshire Star

Court ruling points way on telecoms agreements

Since the introduction of the Electronic Communications Code 2017, landowners and operators have been waiting for clarification on various aspects relating to new leases and the renewal of existing agreements.

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Steven Corfield is a partner and agricultural specialist at Shropshire law firm, FBC Manby Bowdler LLP

This awaited clarification has been coming through on the drip by way of court decisions.

Recently, there has been a decision of the Upper Tier Tribunal of the Lands Chamber on the subject of consideration, rental levels and compensation, which is a first judgment on this aspect. The case involved was EE Limited and Hutchinson 3G UK Limited v The Mayor Burgesses of the London Borough of Islington and this related to a rooftop lease for 10 years.

While this case applied to a city site, the court has set their criteria for the decision process, which will apply to all sites whether they are in the town or countryside.

The parties were unable to reach an agreement and therefore the court imposed an agreement on them for a 10-year lease with the conditions originally proposed by the operator and to be subsequently varied by agreement between the parties.

Regarding rental levels, the court applied a new valuation approach in that the rental level was determined by not taking into account the existing telecoms network. Applying a “no network assumption” or giving the network a nominal rental value, the rental level would have been reduced to £1,000 per annum, although the operators had offered £2,552 per annum, which the court actually ordered to be the case.

It should be stressed on this occasion that the “no network” basis resulted in a nominal value for this small rooftop site with relatively little equipment. Hence, the approach to a tower site in the countryside may introduce other parameters.

Each case will need to take into account its particular circumstances, but it is clear that this court decision has significantly changed the landowners’ negotiating position.

Steven Corfield is a partner and agricultural specialist at Shropshire law firm, FBC Manby Bowdler LLP