The Electronic Communications Code has just come into full force, as at 28 December 2017.

The new Code will be of significance to landowners, occupiers, surveyors, lawyers and network operators alike:

• Landowners will have less freedom to charge premium prices for the use of their property by network operators. This is because under the Code land is to be valued on the basis of its value to the landowner, rather than the operator, thereby disregarding existing telecoms leases and associated rights. The result may be that rentals for leases under the new Code are depressed.

• Surveyors will be faced with interpreting the new legislation and providing valuations of land in accordance with the changes in the valuation basis brought about by the new Code.

• Network operators will benefit from the Code as it makes it simpler to upgrade and share their equipment without having to negotiate fees or assignments with landowners. Landowners will no longer be able to take a portion of the income generated from the site sharing arrangements between operators.

• Lawyers will be required to follow the new Code of Practice published by Ofcom and also use their newly produced standard terms and template notices in contracts subject to the Code. The Code also changes the way telecoms leases are dealt with under the Landlord and Tenant Act 1954 by ending the double protection which was previously enjoyed. Telecoms leases will now only be protected by the Code, but the Code sets out a new termination procedure to be followed by landowners

The Code is likely to only affect agreements entered into on or after 28 December 2017, although there may be some degree of retrospective effect.

The primary purpose of the Code is to increase the speed and ease with which electronic communications apparatus is rolled out, in line with the government’s plan for the UK’s digital future and economy. However, as the new Code only came into force a matter of weeks ago, we are yet to see what impact the Code will have in practice for each affected party.

We will report further in due course as the impact of the Code becomes known.

by Anya James-Weller
Solicitor