Most landlords do not fully comprehend how a telecommunications agreement may affect their property for years to come, whether it’s through building operations, income generation or housing and business redevelopment rights. When landlords enter into a telecommunications agreement without a telecommunications plan, they can potentially lose rooftops, face lawsuits or limit future development possibilities. In this blog, Arc Partners will provide you with a practical guide for property owners and developers about What Is a Telecommunication Plan, its key components, why its is crucial and risks of proceeding without a telecommunication plan.
What Is a Telecommunication Plan?
A Telecommunications Package is a formalized document or contract created between the telecommunications provider (carrier) and the user of telecommunications services that establishes rules and regulations, pricing structures, quantity of service inclusive of voice, data, internet, and text messaging.
Telecommunications Package outlines some of the following:
- Service Package: Voice, RFID, Text/SMS, Data bundled into one package (e.g., Unlimited vs. Limited)
- Pricing & Contract: Monthly charges along with possible hidden fees, contract duration (12 to 36 months).
- Types: Packages can either be offered to individuals (Personal Mobile) or Businesses (Enterprise WAN packages with fiber or managed services).
- Package Components: May include hardware leasing (i.e., routers, phones), Security and Support.
Why Property Owners and Developers Need a Telecommunication Plan?
Improved Operational Efficiency: A fully integrated telecommunication system will provide the ability to connect IoT devices, increase security through more efficient technology and provide more effective methods for managing smart buildings while providing the opportunity to reduce operational expenses.
Increased Tenant Retention: Tenants now view high-speed, reliable internet as an essential utility and if tenants cannot access this utility, there will be lower occupancy rates.
Potential to generate revenue: Both rooftops and, in some cases, in-building space may be leased to mobile service providers to create additional revenue for building owners.
Regulation Compliance: By properly planning for your infrastructure, you will avoid any future (local and/or federal) compliance issues associated with construction.
What are the Key Components of a Telecommunication Plan?
Here are some of the key components of a telecommunication plan which include:
- Network Infrastructure: Physical (fiber optic cabling) and virtual (cellular networks using 5G/LTE), fiber optic and cellular towers used for transporting data.
- Demand Forecasting and Capacity Planning: Requires a thorough understanding of both how much bandwidth/infrastructure is being utilized now and what will likely be needed in the near future based on usage patterns.
- Vendor Management and Service Procurement: Determines what type of Internet, Voice (VoIP) and Data Services you will require and then works to identify vendors, negotiate terms and establish contracts using RFPs.
- Safety and Security: Establishing firewalls, encryption systems and secure protocols to safeguard sensitive information and comply with applicable laws.
- Monitoring, Measuring, and Optimizing: Tracking Key Performance Indicators (KPIs) such as jitter, latency, download speeds and/or downtime to ensure quality of service.
- Redundancy and Business Continuity: Having backup systems in place (i.e., Wireless Failover/Secondary Path) to retain/maintain connectivity while experiencing an outage.
- Budgeting and Cost Management: Auditing telecom invoices using Telecom Expense Management (TEM) to identify areas to lower costs and manage telecom spending.
- Communication Policy and Support: Establish policies regarding usage of telecom services for users. Provide technical support for all end-users including training.
Telecommunication Plans in New Developments vs Existing Properties
| Aspect | New Developments | Existing Properties |
| Planning | Proactive and built in | Reactive and retrofit based |
| Connectivity | Fibre-first, 5G ready | Often legacy copper/coax |
| Installation | Pre planned during construction | Added later with disruption |
| Cost Impact | Included in development cost | High upgrade investment |
| Flexibility | High future readiness | Limited by existing design |
| Speed & Performance | Consistently high | Variable, often slower |
| Property Value | Strong positive impact | Moderate unless upgraded |
What are the Risks of Proceeding Without a Telecommunication Plan?
- Elevated Costs and Inefficiency
- Raising the possibility of Cyber Security Threats
- Diminished Operational Accessibility
- Stagnation of Strategic Initiatives
- Lack of Compliance with New Regulations
When Should You Put a Telecommunication Plan in Place?
Key Events for Implementing or Updating a Telecommunications Plan:
- Anticipation of Future Growth and/or Restructuring: Growth through New Locations and/or Offices.
- New Technology Implementation: When Upgrading Old Technologies (POTS and Copper) to New Technologies (VoIP and Cloud).
- Rising Operational Costs/Declining Utility Service: High and Rapidly Rising Costs and Declining Quality of Network.
- Adoption of Hybrid and/or Work From Home Workforce: To Support the Security and Flexibility of a Distributed Workforce with Appropriate Tools.
- Anticipation of Changes in Regulatory Compliance: To Comply with New Data Protection and Compliance Regulations, such as the End of Life for Analogue.
Conclusion
To summarise everything that has been stated so far, the given information on the topic “What Is a Telecommunication Plan?” outlines a telecommunication plan, its key components and why property owners and developers require a telecommunication plan. If you are seeking help regarding a telecommunication plan, feel free to contact Arc Partners by dialling 020 3689 0282 or emailing enquiries@arcpartners.co.uk. To learn more, visit Arc Partners’ website today
Frequently Asked Questions About What Is a Telecommunication Plan
Question 1: Is it a legal requirement for landlords to have a telecommunications plan?
Answer: There’s no legal requirement for landlords to have a formalised plan, but any telecom legislation such as the Electronic Communications Code may limit a landlords’ control over their property without a formalised telecom plan. A plan allows landlords to manage these risks more effectively and to be proactive in dealing with telecom related issues.
Question 2: What risks do landlords incur without a telecoms plan?
Answer: Without a telecommunications plan, landlords risk losing the rights to the roof of a building, receiving below-market rents, being involved in litigation and limiting their options to redevelop or dispose of their property.
Question 3: What is the distinction between a telecommunications lease and a wayleave?
Answer: A wayleave is generally considered to be a temporary agreement for access to land for placing telecommunications equipment on it, but a telecommunications lease grants its owner additional rights for an extended period of time. Developing a telecommunications plan can help landlords understand which type of agreement is appropriate for their property.
Question 4: What kind of property benefits from a structured telecommunications plan?
Answer: Properties such as residential blocks, office buildings, mixed-use developments, retail centres and utilising the roof space or open floor area provide the best opportunity for developing a telecommunications plan.
Question 5: Who should prepare a telecommunications plan?
Answer: A telecommunications plan should be prepared by a telecommunications specialist or a chartered surveyor who is RICS accredited and has experience dealing with telecommunications infrastructure, property law and negotiations with telecoms carriers.