If you have just had a conversation from a mobile operator or infrastructure company regarding a phone mast installation onto your premises, your first reaction would probably be to reach for the phone and call your normal solicitor or even estate agent. It is a matter of property, so surely they deal with property matters. What can be so different?

In short, almost everything. Telecommunication agreements follow a very different body of law, require extremely technical valuations, and are conducted by companies with full-time experts whose job is to reduce the amount they pay you at all costs. Attending such negotiations with a generalist advisor is a bit like participating in a highly competitive chess game with someone who can only play checkers.

This article explains precisely why having an expert in phone masts – like Arc Partners, a London-based practice of Chartered Surveyors specialising exclusively in representing landlords nationwide – will make a significant difference in your telecommunication agreement.

The Electronic Communications Code: A World of Its Own

For the most part, all property deals in England and Wales fall within clear legislative guidance: Landlord and Tenant Act, RICS guidelines, or simply the law of contracts. In the case of telecoms deals, there is another complex and constantly changing piece of legislation in place – the Electronic Communications Code (the Code), which underwent major revisions in 2017 and since then has generated multiple rulings from the tribunal.

The introduction of the Code creates a new balance of power between landlord and operator. According to the Code, an operator can approach the Upper Tribunal (Lands Chamber) and force an agreement on a reluctant landlord. What is more, the method used to estimate the rental value of the site is lower than the market rate because of the ‘no-network’ assumption. Thus, the value of the site for the operator is disregarded when calculating the rent.

A standard property advisor may not have knowledge of such details. On the contrary, a professional dealing with telecoms masts will know all the rulings, as well as the way operators use the Code to reduce the rent and impose conditions on the lease.

Valuation: Why Comparables Evidence Matters Above All

There is no factor more significant in terms of a telecoms rent negotiation or review than the ability to obtain relevant comparable evidence. Without knowing exactly what comparable landlords are achieving – but importantly what they should be achieving – then you will be negotiating without your eyes open.

Telecom operators exchange information and work together on their strategy. In general, property advisors do not have the specific database of telecom deals, contacts, or knowledge of the market in order to compete against this stance. However, telecom phone mast specialists have a vast amount of comparable evidence based on live caseloads in the market.

For example, at Arc Partners, by representing only landlords across London and the rest of the UK, we build up an unparalleled view of what is achievable and what concessions telecom operators make when presented with knowledgeable opposition.

Lease Negotiations: The Devil Is in the Detail

Telecom leases are not commercial leases. The various conditions, such as access rights, break clauses, upgrades, sharing rights, and decommissioning, among others, have considerable implications for the landlord in the future. All these terms and conditions are drafted in a highly technical manner in an effort to maximize operator’s advantage.

Areas where specialist advice will make the most noticeable difference include:

• Upgrade and sharing rights – operators usually ask for the right to share their equipment with third parties and the right to upgrade the equipment without the landlord’s consent.
• Break clauses and security of tenure – the interaction between the Code and the Landlord and Tenant Act 1954 should be properly taken into account.
• Decommissioning and reinstatement – a specialist will secure you an adequate commitment to put back your premises after the completion of the contract.
• Rent review mechanics – rent reviews should be arranged in such a way that they provide for increases in the rent.

Your Operators Are Specialists – So You Need A Specialist Advisor

It is useful to recognize the commercial reality. The mobile network operators and the infrastructure companies – such as EE, Vodafone, O2, Three, or the likes of Cornerstone or MBNL coming onto your site – enter into telecoms agreements all the time. They know the Code inside out, are highly sensitive to market value, and have the motivation to secure the minimum rent and maximum rights possible.

Sending a generalist advisor into battle against such specialist firepower is an unequal match indeed. Having a specialist advisor who knows how phone masts work means the battle will be more even. He knows their methods, recognizes their tricks, and understands when the initial offer is completely unrealistic. And such experience pays off.

Management and Rent Review Process

A telecommunications agreement does not happen only once. There may be rent reviews, application for the assignment of the agreement, notification of upgrades, renewals of the code agreement, and requests for apparatus modification or sharing during the whole period of time when such an agreement will work, which can be for many years. All of these contacts need special expertise.

The general advisory company will deal with the telecoms contract and leave you alone after signing the contract, while the specialist consultancy will have continuity: managing your agreement, responding to the operators’ actions, and making every new contact successful for your business.

The Price of Getting It Wrong

The repercussions of poor telecoms negotiations last a long time into the future. If you agree to a rent which is lower than market rate in a new negotiation, it can establish a benchmark which is followed through numerous negotiation periods in the future. If there are too wide rights of upgrade and sharing in an agreement, you could end up with far more apparatus on your property than you ever expected.

A good negotiating deal will put in place the foundations for a landlord-friendly arrangement throughout the entire term of the agreement. The importance of getting expert assistance is thus not just the cost savings but the long-term benefit for the full period of the agreement.

Why Arc Partners?

Arc Partners is one of the leading telecoms property consultancies in the UK, and is a consultancy that acts exclusively on behalf of landlords. A chartered surveyor with specialist knowledge on rooftop base stations, greenfield masts, microcells, and any form of electronic communications infrastructure, the company works throughout London and the rest of the UK, especially with a history of representing the landlords of some of the most famous buildings in London.

Being a consultancy that works only for landlords, and never works for operators, there will be no conflicts of interest or divided loyalties. Each negotiation, each rent review, and each piece of advice is geared towards making sure that you get the best out of your properties.

If you have been contacted to start negotiating about a new Code agreement, or just want to know if your telecoms situation is as good as it could be, please get in touch with Arc Partners at www.arcpartners.co.uk today for a free initial consultation.

Conclusion

When a telecoms company seeks out an arrangement regarding a phone mast on your property, the choices that you make right from the outset will determine how things pan out in the future, perhaps for decades. It’s a complicated area of law, the other party is well prepared, and it’s a serious business financially. Hiring a phone mast specialist lawyer is not something that can be done optionally; it is the only sensible course of action for a landowner to take.

Frequently Asked Questions

What does a phone mast expert do?

The expert will negotiate the telecoms agreement, review of rent and lease terms on behalf of the landowner alone, based on their in-depth knowledge of the Electronic Communications Code and the current market conditions.

Can I have my own solicitor/estate agent make the telecoms agreement?

Yes, but there are risks involved. Telecoms are an extremely specific area of law, and the general advice giver lacks the knowledge of the Code, evidence required and experience to negotiate from a strong position.

How is the phone mast rent calculated under the Electronic Communications Code?

It is done based on the ‘no network’ assumption, meaning that the value of the site to the operator is deliberately excluded. The expert will ensure that comparable evidence is used properly to avoid lower rent than necessary.

What goes on in a phone mast rent review?

The operator may try to maintain or decrease rent. This is challenged by a specialist using the market evidence and case law under the Code, resulting in an increase in the amount that landlords of a similar nature receive.

Do I require specialist advice when I have an existing mast at my site?

Yes. It’s important that you reevaluate your existing contracts. Most landlords get paid considerably less than what they should, and coming rent reviews or lease renewals represent a great opportunity to negotiate your terms with the correct specialist help.

How can Arc Partners help me with my phone mast contract?

Arc Partners represents UK landowners on all telecommunication issues, whether it be a new deal, rent review, or lease renewal. Get in touch with us via arcpartners.co.uk for a free consultation.