Take advice on telecoms mast deals, landowners urged

Farmers and landowners are being urged to take advice before signing deals with telecoms firms.

Most of the main operators of telecoms masts have been reviewing their sites and looking for ways to reduce costs. Some are sharing sites with other operators, while others are seeking rent reductions – even though a rent review might not be due under the terms of the lease. The Central Association of Agricultural Valuers and the NFU are encouraging farmers and landowners to take advice before agreeing terms.

“The telecoms world has been through a lot of change and re-structuring recently,” said NFU rural surveyor Louise Staples. “There is a very significant push to reduce their operating costs by reducing the overall number of masts and by paying less rent for the ones they keep. In practice there is almost always a written lease agreement which in many cases will only permit rent reviews at certain times and may not allow early termination at all.”

Telecoms leases are governed not only by the Landlord and Tenant Acts which govern commercial property lettings, but also by the Electronic Communications Code, which gives the operators certain rights and obligations.

“It is important that site owners take advice from someone who understands not only the complex legislation surrounding telecoms masts, but also how the market is evolving,” said the CAAV’s Kate Russell. “We hear of operators saying that they have evidence of lots of deals being agreed to reduce rents, but on closer examination we often find that the site owners signing up to those deals did not have professional advice and might not have had a good understanding of the market for telecoms mast sites.

“An individual mast rental might not seem like a huge sum and some site owners think that professional fees cannot be justified. But telecoms masts represent a significant and regular source of income on many farms and the owners of these sites should take care to protect their asset. No-one should be asked to sign a legally binding document without taking specialist advice, so that they can be sure that they are securing that income stream into the future. “