The 2017 Telecommunications Code became law on 28 December 2017.  It applies to communications apparatus installed on land under a written agreement and seeks to balance the public interest with private property and business rights. 

The core principle of the new code is one of agreement.  An Operator needs the landowner’s agreement to the apparatus and the terms of its installation.  Recourse to the Court is available to determine whether apparatus can be imposed and what a fair and reasonable agreement, including payment, for that would be.

The New Code applies to all new Code Agreements and to the modification including renewal and removal of existing agreements. 

Under the New Code a landowner cannot prevent an Operator from assigning the agreement or to the upgrading of apparatus; they are also unable to impose conditions such as payment.  The upgrading of apparatus can be challenged if it imposes an additional burden on the landowner by way of an adverse impact on their adjacent land or if they are caused any additional loss, damage or expense.  Prior notice to the landowner however is not required, thus meaning that upgraded equipment could be installed without prior consultation. 

In the build up to the New Code there has been much talk about the consideration payment for masts and equipment and that this might be reflective of a “no scheme world”, leading to concern that rents would fall dramatically.  This has been further defined and the Code states that consideration is the market value of the landowner’s agreement to confer or be bound by Code Right.  In respect of rental levels going forward this remains to be seen, however the overriding message is that the market will decide upon what the value will be.

We await to see how negotiations will proceed in practice under the New Code, however the careful drafting of agreements will be key to protect landowner’s interests.  If you require advice in respect of any existing Equipment and how this Code will affect you, please get in touch.

Stafford Office: 01785 220044/ Laura.Airton@fishergerman.co.uk