Search

How can we help?

Icon

Navigating Telecom agreements: landlords beware

What is a Telecommunications agreement?

A telecommunications agreement, sometimes known as a wayleave agreement, is a contract between a service provider and a landowner which allows the service operator access to install its apparatus and infrastructure over or under the privately owned land, in return for wayleave fees, or rent.

These types of agreements are subject to Communications Act 2003 (the Electronic Communications Code), which under Schedule 3A grants the operators extensive statutory rights – such as rights to:

  • install the apparatus on, under or over the land;
  • keep installed the apparatus on, under or over the land;
  • inspect, maintain, adjust, alter, repair, upgrade or operate the apparatus;
  • share with another operator the use of ECA which the first operator keeps installed on, under or over the land; (.
  • carry out works on the land for or in connection with the installation of the apparatus on the land or elsewhere;
  • carry out works on the land for or in connection with the maintenance, adjustment, alteration, repair, upgrading or operation of the apparatus on the land or elsewhere;
  • carry out any works on the land for the purposes of, or in connection with, sharing with another operator the use of apparatus which the first operator keeps installed on, under or over the land or elsewhere;
  • enter the land to inspect, maintain, adjust, alter, repair, upgrade or operate any apparatus which is on the land or elsewhere;
  • connect to a power supply;
  • enter the land for the purposes of, or in connection with, sharing with another operator the use of apparatus which the first operator keeps installed on, under or over the land or elsewhere;
  • interfere with or obstruct an access; or
  • lop or cut back vegetation that may or will interfere with the apparatus.

The landowner must give at least 18 months’ notice to the operator to terminate the agreement.

Terminating the agreement

The Code gives operators security of tenure rights similar to those set out in the Landlord and Tenant Act 1954. This means that the process of terminating an agreement is complicated and could jeopardise a landowner’s redevelopment plans, for example.

The landowner must give at least 18 months’ notice to the operator to terminate the agreement, relying on at least one of the following four grounds:

  1. intention to redevelop the property;
  2. substantial breaches of the agreement by the operator;
  3. persistent delay by the operator in paying rent; or
  4. the operator is not entitled to the code agreement because the test under paragraph 21 is not met.

Why are telecommunications agreements risky?

Operators are granted code rights even if an agreement does not actually state this to be the case. Landlords could therefore inadvertently be agreeing to severely limit their ability to deal with their own property if the wayleave agreement is not negotiated properly, with some of the operator’s rights limited where possible, and a fairer balance for both parties is reached.

If you have been contacted by a telecommunications company seeking a wayleave agreement, take some time to consider this and speak to professionals who can guide you through the process. For advice on telecommunications and wayleave agreements, you can contact our commercial real estate team here.

 

About this article

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

About this article

Read, listen and watch our latest insights

art
  • 21 October 2024
  • Commercial Real Estate

Commercial Property Standard Enquiries (CPSE): why is it important to get them right?

Commercial Property Standard Enquiries (CPSE) have been a part of a commercial property transaction for over two decades now. Nonetheless, it would be safe to say they can be tricky to deal with.

art
  • 17 September 2024
  • Commercial Real Estate

Planning reform: what to expect from the new Government plans?

The newly elected Labour government can now resume work on various legislative proposals pledged in its election manifesto. There are several bills which may have impact on commercial property in the UK.

art
  • 17 July 2024
  • Commercial Real Estate

The Leasehold and Freehold Reform Act 2024: what does it mean for my leasehold property? 

The leasehold system in the UK has been subject to some unfavourable press for some time now.

art
  • 03 June 2024
  • Commercial Real Estate

Sustainability and commercial property: green leases  

Climate change is considered by many the biggest threat we are facing today. With the UK said to have one of the oldest housing/building stocks, the focus on a building’s environmental performance and sustainability has never been more critical.

art
  • 25 April 2024
  • Commercial Real Estate

Food for thought when opening a restaurant

In this article, we provide an overview of the key considerations for restaurant entrepreneurs to keep in mind when starting their new venture.

art
  • 27 March 2024
  • Commercial Real Estate

5 key considerations when taking on a lease of a pub property

Taking on a pub property can be both exciting and daunting. Here are 5 key considerations that pub tenants should consider when taking on this new venture.