Rooftop Telecoms Leases and the Electronic Communications Code

Letting a rooftop or a plot to a mobile operator for a mast or antennas can be a useful income stream, but the Electronic Communications Code has shifted the balance heavily towards operators. Landlords need to go in with their eyes open.

What the Code does

The Electronic Communications Code governs agreements that let telecoms operators install and keep apparatus on land and buildings, such as rooftop masts and antennas. Reforms from 2017, and further changes since, were designed to make it easier and cheaper for operators to roll out networks. The practical effect for site providers has been lower rents and stronger operator rights.

The rent has fallen

Under the Code, rent is assessed on a basis that largely strips out the value of the site to the operator's network, so Code rents are typically far below what landlords used to receive under older agreements. Many landlords renewing old agreements have seen the rent cut sharply.

Operator rights are sticky

Code rights can be difficult to remove. Operators have security that makes it hard to get them off the roof simply because you want to, and terminating or relocating apparatus follows a specific statutory process with notice periods. This can complicate a future redevelopment or sale.

What to watch

• Do not sign the operator's standard agreement without advice; the terms are heavily operator-favourable.
• Redevelopment: build in the ability to relocate or remove apparatus if you may redevelop.
• Existing agreements: take advice before renewing, because the rent basis has changed.

Get specialist advice

Telecoms agreements are a specialist area with their own tribunal and case law. Use a surveyor and solicitor experienced in the Code before agreeing or renewing. This is framework guidance, so confirm the current position for your site.

Why has rooftop telecoms rent fallen?

The Electronic Communications Code assesses rent on a basis that strips out the value of the site to the operator's network, so Code rents are typically far below older agreements.

Can I easily remove a telecoms operator from my roof?

No. Code rights are difficult to remove and follow a statutory process, which can complicate a future redevelopment or sale.