Skip to main content

News story

February 22, 2018

The New Electronic Communications Code: Key points for landowners

A new Electronic Communications Code came into force on 28 December 2017, the rationale behind which is the improvement of telecoms operators’ networks, infrastructure and connectivity.

The new Electronic Communications Code grants certain rights to operators (“Code Rights”), including installing, maintaining, upgrading and operating apparatus and connecting to a power supply. These rights can be acquired either by entering into an agreement with a landowner/occupier or by an agreement imposed by a Court order.

Written agreement

An agreement needn’t be in the form of a lease, and whilst Ofcom is obliged to produce standard terms, it is optional whether to adopt these. It is also worth noting the following:

  • other than requiring an assignor to guarantee an assignee’s obligations, restrictions on assignment are void. Landowners therefore have no control over the assignment of such agreements, which is a concern;
  • leases containing Code Rights now fall outside of the ambit of the Landlord and Tenant Act 1954;
  • terms which seek to exclude or are contrary to the Code are not enforceable; and
  • an agreement entered into by an occupier will not necessarily bind the freeholder.

Agreement by Court order

In such an agreement, the consideration is based on a “no scheme” market value which ignores the site’s value to the operator and, arguably, could result in a lower rent. It is also worth noting that a Court cannot make an order if there is an intention to redevelop, which could not reasonably be carried out if the order were made.

Other matters of note

Code Rights include sharing apparatus with other operators provided they comply with certain criteria. Terms which seek to restrict this (including requiring consent) are void. Landowners, therefore, may be unable to gain extra income from entering into additional agreements with further operators.

Any existing agreements granted subject to the previous 1984 Code are subject to transitional provisions, so the new Code will apply to them but with modifications.

Also, note that Code Rights needn’t be registered at the Land Registry to be binding.

Termination

To remove Code Rights, a site provider must serve a minimum of 18 months’ notice from the expiry date of a Code agreement specifying a relevant ground, which includes an intention to redevelop all or part of the land or neighbouring land and which could not reasonably be done unless the Code agreement ends. If the operator objects, it can serve a counter notice within three months and apply for a Court order. The Court will then determine the matter. There is a separate procedure to remove apparatus, and different rules will apply depending on the circumstances.

The extra income to be gained by landowners from allowing telecom operators to utilise roofspace is obviously welcome. However, if there is any scope for future development, careful consideration is required as to whether the additional income is worth the potential difficulties further down the line in securing vacant possession.

Call property partner John Gillette today for more information on Code Rights and the electronic communications code.

Note: This is not legal advice; it provides information of general interest about current legal issues.

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • Can you make a WhatsApp will?
    Key legal requirements and future outlook.


    Read more
  • Supporting neurodiverse people in family law matters
    Understanding neurodiversity in the legal context.


    Read more
  • Supreme court ruling on referees’ employment status
    In PGMOL v HMRC, the Supreme Court considered whether professional referees were self-employed. The case has the potential for far-reaching implications across the employment world.


    Read more
  • Business First Magazine
    Read our expert insights on key workplace and corporate issues.


    Read more
  • Why is clear contract drafting important?
    How simple contract clauses can protect your business.


    Read more

What they say...

  • Ian, April 2025
    “Martin and his team at Barker Gillette acted for us in our purchase and sale of property. The chain was lengthy and elements of the work became complex. Martin was tenacious and resolved to answer our queries as they arose. He handled all aspe

  • Henry, April 2025
    “We have purchased flats before with 2 different solicitors who were unable to help us this time. Martin came highly recommended and are we glad. He was very professional in every way: knowledgeable, approachable, he has a friendly manner, very

  • Megan Purcell-Jones, April 2025
    “Charlotte was extremely diligent and thorough. She talked us through the process of making our wills and listened to and understood our needs and the complexities involved. Extremely patient and very clear.”

  • Hena, April 2025
    “Great experience, Patrick was very clear and gave time to explain the legal processes. Friendly and professional communication made me feel comfortable asking questions, received great legal advice.”

  • Michael Constable, April 2025
    “I wanted to revise my will and appoint RIAA Barker Gillette as my Executor and Trustees. This was handled very efficiently and professionally. It helped that I had agreed a fixed fee in advance.” Review left for: Herman Cheung

Read more
Send this to a friend