A recent decision seeks to further clarify rural telecommunication agreements
17 October 2024
The new Electronic Communications Code (“the new Code”) came into force on 28 December 2017 and replaced the previous 1984 Code. It brought about changes to the statutory rights given to telecommunications operators to facilitate the creation and operation of their networks.
It is generally acknowledged that these changes are favoured towards operators rather than landowners and site providers. The case of EE Ltd & Hutchison 3G UK Limited v AP Wireless II (UK) Limited [2024], however, represents a slight shift in favour of landowners and site providers.
This case concerned the renewal of a rural telecommunications lease at Vache Farm located in Buckinghamshire. The telecommunications site was described by the tribunal as an “unexceptional rural site” located on the boundary of a grass field, adjacent to an area of woodland. The two main matters disputed were the landlord’s contractual termination provisions and the level of rent under the agreement.
The parties had been unable to agree on the circumstances in which the landlord should have the right to terminate the telecommunications lease. It was agreed that the redevelopment break should only be exercisable after five years, but the parties disagreed on whether the landlord’s right to terminate for redevelopment purposes should include or exclude redevelopment for telecommunication purposes.
The tribunal concluded that there was no reason to obstruct redevelopment whether that be for telecommunications or not. As such, the landlord’s redevelopment break could include redevelopment for future telecommunications use.
The tribunal also considered the appropriate rent for the telecommunications site. The tribunal noted that it had previously settled on a figure of £750 per annum as to rent for comparable rural sites.
However, upon considering expert evidence and accounting for inflation, the tribunal were persuaded that the figure of £750 was too low and should be reconsidered. It concluded that the appropriate annual consideration for a rural mast site should be £1,750 per annum.