In case you happen to own land or building that could be or has already been required by suppliers of mobile communication facilities for installation of such facilities on their land, there is no doubt that you will have encountered both CTIL and MBNL. In fact, most of the mobile masts, rooftop facilities, and telecom cabinets in the UK are under the jurisdiction of these two firms. But unfortunately, many of the owners of the land remain unaware of who they are and how they operate. This manual attempts to make them aware of how CTIL and MBNL differ from each other and why it matters to them.

What Are CTIL and MBNL?

The Cornerstone Telecommunications Infrastructure Limited and Mobile Broadband Network Limited are joint infrastructure ventures established by the mobile operators of the UK. Instead of establishing separate networks of sites and taking care of them, CTIL and MBNL make it possible to use one site by two mobile operators.

Cornerstone Telecommunications Infrastructure Limited (CTIL) is a joint venture between Vodafone and O2 (Telefónica). CTIL operates tens of thousands of sites in the UK, both rooftop and ground-based sites. The splitting of the country is such that Vodafone takes care of the infrastructure in the west part, while O2 is in charge of the east part of the country.

The Mobile Broadband Network Limited (MBNL) is another joint venture, which was set up by EE and Three, but the operation of this venture differs from CTIL. In contrast to CTIL, MBNL operates with each operator having more of their own equipment on the sites.

Key Differences Between CTIL and MBNL

Ownership and Operations

Certainly, the main distinction between these companies is the ownership itself. Whereas CTIL serves Vodafone and O2, MBNL acts on behalf of EE and Three. When one of them shows up, the company representing the other network operators and their own interests in terms of coverage and growth comes up for negotiation.

Networking Structure and Consolidation

The first company has chosen the consolidation way and seeks to have one network running on one site within the framework of Multi-Operator RAN strategy. The second company has gone through a different process of development, namely sharing of equipment and independent operation of some components on the same site. Therefore, one site can have more diversity of equipment, which will affect the amount of equipment you will have at your disposal.

Portfolio Size and Type

Both companies have significant portfolios of sites in the country that consist of rooftops of commercial and private properties and ground-based towers in rural and urban environments. It is known that the portfolio of CTIL is one of the largest in the country. The exact number of sites in the portfolio depends on whether the company is upgrading/consolidating/decommissioning their network at the moment, hence, it is reasonable to use current numbers of sites of a certain site.

Ownership Changes of Companies

Both companies have changed the ownership in the recent years with their tower portfolio being of interest to third parties. Specifically, Vantage Towers took the portfolio of CTIL which is owned by Vodafone, whereas MBNL’s tower portfolio became interesting for infrastructure companies. This change affects the relations between the owner of the property and those people who manage and lease it.

Strategy of Negotiation and Commercial Terms

Since the operators offered by CTIL and MBNL vary, it is obvious that the template contracts, rent reviews, and standard leases would differ from company to company. It is normally observed that the initial position presented by CTIL does not match that of MBNL despite similarities in the sites.

Why Does This Matters for Property Owners?

In view of the fact that since December 2017 there has been the implementation of the ECC, a lot of landowners have suffered from the reduction of their rental income from the telecoms contracts, which sometimes reached up to 90% as compared to the amount they used to receive prior to 2017. It does not really matter whether you are approached by CTIL or MBNL – everything comes down to the same law.

However, it would be good to know the opponent in order to understand how he will behave and how his proposal compares with others.

Practical Considerations Before You Sign

• Ensure that it is the right joint venture, as well as the right underlying companies, that enter into the contract.
• Ascertain if the location being considered will house the common equipment or different locations.
• Evaluate the access rights with care since both the CTIL and MBNL contracts offer good access rights.
• Consider the limitations of development or reselling that the contract could place on the location.
• Conduct a secondary analysis to ensure an independent assessment of the location since the rents may be quoted based on out-of-date figures.
• Counsel should be taken when considering lease periods of over 20 years or more.

Conclusion

Despite the apparent similarity of CTIL and MBNL in many aspects – both being joint ventures with their primary objective being infrastructure sharing for the benefit of mobile operators – there might still be a lot of things which distinguish those organizations when it comes to the representation of interests of certain parties, the network strategy pursued and the commercial terms offered. It is obvious that it will be very important to know about the company you are going to do business with and what their strategy is in order to make a good deal. Taking into consideration the length of the contract period it would be wise not to rush things and consult a specialist before making any decisions. Arc Partners can help you in doing that.

FAQs

What is the key distinction between CTIL and MBNL?

CTIL is a joint venture company between Vodafone and O2, while MBNL is a joint venture between EE and Three. The main thing about both companies is that they have their own network, site strategy and commercial strategy.

Who has more masts in the UK?

Both CTIL and MBNL have large numbers of sites in the UK which is constantly increasing because of network upgrade and expansion.

Can a property be equipped by CTIL and MBNL equipment?

On one site, there can be equipment from both joint ventures. This way the property owner has to cooperate with two companies.

Will the rent always be the same irrespective of the organization I am dealing with?

No, as the rent will differ according to the operator and other conditions such as the type of sites and location and negotiations. The CTIL and MBNL do not follow the same formats in their contracts, hence the need for professional benchmarking.

Does the ECC have any influence on these contracts?

Yes, the ECC influences the contracts of CTIL and MBNL in equal measure. It gives operators good access and right to upgrade while restricting landowners from negotiating high rental incomes as was seen before 2017.

Do I need professional assistance before entering into such a contract?

Yes, contracts tend to go on for 20 years and very inflexible. Professional advice ensures you know your access rights and limitations of redevelopment.