UK landowners are looking at their mobile mast agreements in light of 2025, as landowners question whether they are still in the best position. With ongoing regulatory pressure, valuation shifts and continued 5G expansion, it becomes essential for landowners to reevaluate mobile mast agreements. In this blog, Arc Partners will provide you with everything you need to know about why landowners should reevaluate their mobile mast agreements in 2025.
Why 2025 Is a Turning Point for Mobile Mast Agreements
Mobile Masts are a permanent fixture of the digital landscape in the UK. However, as with many things in life, the landscape has changed, and power, regulations, and commercial reality have also evolved in response to that landscape. The balanced approach taken by Landowners in terms of their relationship with networks has changed in the last six years with the continued expansion of 5G technologies being one of the key drivers of that change.
The following are the Reasons Why 2025 Will Be Significant to Many Landowners with Mobile Mast Agreements:
- Expansion in operator activity as a result of 5G technology Rollouts
- The continued application of the Electronic Communications Code (ECC)
- Increased awareness by Landowners of the Financial Impact of Long-Term Assets
- The recognition by Landowners that there has been an increase in valuation and an increase in control by Operators
More and more landowners are taking proactive and strategic action to understand their Mobile Mast Agreements.
How Mobile Mast Agreements Have Changed in Recent Years
Ten or fifteen years ago, mobile mast rental agreements were usually negotiated using commercially straightforward terms. The basis for rent at that time was solely on the market conditions for the specific location and what exclusivity exists for that location, as well as for landowners to retain a reasonable degree of control.
The environment today is considerably more complex than it was ten or fifteen years ago:
- Increasingly, agreements have a greater reliance on The Code, rather than on the market
- The operator’s rights have a greater breadth and enforceability
- Negotiations are becoming increasingly technical and legal
- Terms are becoming more standardised
As a result, agreements entered into more than ten years ago will likely have little relevance to today’s laws, and agreements entered into after that date may also have long-term implications unless carefully reviewed.
The Impact of the Electronic Communications Code on Landowners
The Electronic Communications Code impacts nearly all aspects of mobile mast agreements in the United Kingdom by providing a framework for supporting national connectivity; this significantly enhances the negotiating power of communications operators.
The Electronic Communications Code has implications for landlords, including:
- The ability to set rental rates and consideration is diminished.
- Access to sites for the installation of mobile masts and the opportunity to upgrade existing equipment are limited.
- Landlords are increasingly dependent on the decisions made by tribunals with regard to the Code, particularly in terms of the way in which it is implemented in a particular location.
- Landlords will also need to consider the possible impact of the Code on future land use and development.
Valuation Pressures: Are You Receiving a Fair Return?
Valuation is one of the most contentious issues for landlords hosting mobile masts. Under the Code, the basis upon which consideration is determined is based on the assumption that the site would not have been developed for a telecommunications network, which will typically result in lower values than those received under traditional commercial leases.
Important Considerations for Landlords:
- Current valuations of legacy rents are likely to be significantly lower than historic valuations.
- Factors related to the particular site that are supported by the proper documentation are still important.
- Landlords who do not understand how to properly value their site will have a significantly weaker bargaining position during negotiations.
5G Expansion and Increased Operator Activity
The intention of the UK to enhance connectivity has created greater demand for landowners and land owners to become mobile operators, specifically due to existing masts being attractive sites for updates & new equipment installations. Many landowners are also receiving requests from mobile telecommunications operators to update their existing sites or to install new equipment or upgrade existing equipment.
What are the Common Risks Hidden in Existing Mobile Mast Agreements?
Here are some common issues in existing mobile mast agreements which include:
- Broad, unrestricted access rights
- Poorly defined upgrade and sharing provisions
- Long agreement terms limiting future use
- Inadequate reinstatement or removal obligations
- Unclear health, safety and insurance responsibilities
When Should a Landowner Review or Renegotiate an Agreement?
Landowners take a reactive approach to issues as they arise whereas proactive review generally yields better results. Certain conditions should always trigger a re-evaluation; these include: lease expiration or renewal negotiations, operator’s request for upgrades or co-sharing, property sale refinance or appraisal, planned development or use change re-evaluation. Doing a review early will enable you to put yourself in a better position to negotiate a more advantageous lease or other agreement down the road.
The Shift Towards Strategic Asset Management
There is a significant movement away from a “reactive” mode of decision-making and toward a more “strategic planning” mode across the entire United Kingdom. Increasingly, Landowners view Mobile Masts as part of their wider land and property plans and devise their strategies accordingly. In this context, Landowners need to view the following aspects of their Mobile Mast Agreements:
- Long Term Land Use with Flexibility
- Protecting Future Development Potential
- Aligning Telecoms Agreements with their Asset Objectives
- Minimising Unmanaged Risk
Ultimately, Landowners should view their Mobile Mast Investments as:
- More than just annual income
- About Control
- About Future Value.
How Professional Advice Protects Landowner Interests
Legislation about the telecommunications industry is frequently complex and complicated. Thus the quality of general real estate advice is often inadequate. The use of an experienced RICS-accredited Telecommunications Advisor provides Landowners with the requisite tools and confidence necessary to pursue the most beneficial course of action with respect to Valuation issues, Negotiating issues, and Complying with the various Regulations governing the industry.
By having the assistance of a professional, Landowners should be assured of the following:
- Evidence-led and balanced Agreements
- Early identification of Risks
- Strategic vs. Reactive Negotiations
- Long Term Protection of Asset Value
Conclusion: Re-evaluation Is About Control, Not Confrontation
The goal of reappraising mobile mast contracts at this point will not be to generate contention or adversarial behaviour over the amount of infrastructure in place but rather to enable thoughtful processes that maintain maximum property asset value while also allowing properties to interact positively and collaboratively with operators.
The practice of providing support services to land owners with regard to mobile mast contract negotiations and telecommunications networks is a focus area for Arc Partners. Arc Partners assists UK landowners through its RICS accredited consultant practice. Its service enables landowners to fully comprehend their property rights and valuations and also evaluate and develop their strategic direction as the digital infrastructure of the UK continues to transform.
