Mobile Phone Masts and the Landowner - Changes to Telecoms Agreements
Many landowners are being approached by their Telecom Mast tenants wanting to make changes to current agreements. The UK mobile phone market is now saturated with many customers now owning more than one mobile device and individual networks no longer being considered an important differentiator in customer choice. There have been various mergers and consolidation proposals announced recently, with the most notable being between Orange and T-Mobile and Vodafone and O2. The end result is that there are now more network sites in the UK than are necessary. As a result an oversupply situation exists and the total number of sites is uneconomic compared to future revenues.
In asking to renegotiate terms tenants are requesting:
• Consent to assign the lease to a third party or to site share if provision for this is not already made
• Immediate rent reductions, and changes to rent review provisions from Retail Price Index to Market Rent reviews
• Early termination of the lease.
The Telecoms Companies have considerable leverage and there is some concern that if you do not cooperate with companies at this stage of renegotiation then they may well find that your sites are surplus to their requirements at the end of the agreement. Unfortunately it has also come to light that even where landowners have sought to be helpful in order to keep the tenant in occupation, they can still find the site becomes surplus to requirements in the near future.
Following involvement in several negotiations, Camilla White says it is imperative that landowners consider their position and the terms of their existing agreements before entering into any discussions with Telecoms Companies.
Further information from
Camilla White tel: 01305 264172
E mail cwhite@symondsandsampson.co.uk