“It appears that mobile phone operators are currently reviewing mobile phone sites following a series of mergers and collaboration agreements, and as such we have seen a series of phone operators trying to exercise break clauses and terminate lease agreements early.”He continues,
“This is a complicated area of law and the leases should have been carefully negotiated at the outset to ensure that the landowner receives fair compensation.”Telecommunication leasing agreements will usually cover the following areas: The first is the amount of land and airspace that the company wishes to use. Airspace is particularly important as it could allow the company to add additional dishes and hardware to the mast in the future without any additional financial payment to the landowner. Alistair says,
“The solicitor should ensure that any significant increases in the size of the mast, or mast-sharing, will ensure a renegotiation of the lease and raises the option of additional rental income increases for the landowner.”Landowners should also ensure that the company does not have automatic renewal rights. Alistair points out,
“However, landowners need to be aware that this clause can be overridden by Schedule 2 of the Telecommunications Act 1984 which allows the company to demand a new lease for the mast.”When negotiating telecommunication leases, landowners also need to consider access rights to the mast. Alistair continues,
“Access to the mast will be vital for maintenance and upgrading of equipment but it is possible to ensure that the exercise of these rights does not cause undue disturbance to the landowner.”When negotiating leases, your solicitor should also consider tenant break options, enhanced equipment rights and prevent the site being shared across several telecommunication companies without financial recompense. Alistair finishes,
“This is a rapidly changing environment and we always recommend landowners should consult an experienced lawyer before negotiations begin to ensure they receive the best terms possible.
If your mobile phone site is due for renewal or you have received a rent review notice, then contact our experienced lawyers at Tallents for immediate advice before you agree to anything. ”