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RICS London 2018 telecoms conference

Written by admin on . Posted in Collaboration, News.

Cross-industry collaboration is key to achieving UK connectivity benefits

The theme of the annual RICS Telecoms Conference in London focussed on connectivity. Discussions and presentations throughout the day debated current issues and how the digital world will benefit from the rollout of 5G. As technologies advance even further a futurologist asked everyone involved in the development of new technology to consider whether “…just because we could, does not mean that we should”. A thought provoker! Other highlights from the day were:

Mobile connectivity for Wales

Peter Williams – Technical Relationship Manager for the Welsh Government – opened the morning session with an engaging presentation on the vision to provide Wales with not only connected cities but a connected country. It was motivating to hear how despite difficult terrain challenges, determined collaborative working has delivered much-needed connectivity for communities.

Enabling and delivering the digital economy

Intrinsically linked with the connectivity theme was the Electronic Communications Code (ECC). In his keynote speech Wayne Clark, of Falcon Chambers, referenced a case ruling between Cornerstone (previously CTIL who are leading the industry in taking cases to the Lands Tribunal to settle disputes and get clarification about site access and renewals), and the University of London. During the Question and Answer session, he acknowledged that Landlords should try to negotiate site access agreements but called on the industry to “engage not enrage” this vital community.

The government view

The sentiment of engagement continued throughout the morning’s agenda. None more so than the Enabling and Delivering the Digital Economy panel debate where Melissa Giordano from the DCMS spoke about “…wanting to foster good relations between site providers and operators”.

The infrastructure services view

Belinda Fawcett – General Counsel and Director of Property and Estates at Cornerstone – observed that recent rulings which have set legal precedents have resulted in a shift in landlords and solicitors starting to engage more in conversation with Cornerstone to negotiate on sites instead of taking legal action. She asserted that “We, us, you, have to find a way forward. Otherwise, we are not going to achieve the goals of the Code legislation and, for 5G, to deliver the additional infrastructure in a cost-effective way for businesses and the communities where they live and work.” Twitter users welcomed her thoughts with comments including “Belinda making some extremely valid points around ECC”.

The landowner’s view

Crown Estates were also very clear on how “connectivity lies at the heart of the success of our business” and that the value to them and their tenants of having good digital infrastructure” pails rent into insignificance compared to redevelopment, connectivity and flexibility.’

Summary

The panel debate created a lot of social media buzz and was a highlight for many delegates. Overall there was a desire for providers, agents and landlords to communicate, collaborate more and see the broader picture. If it does so, the UK can realise the mutual benefits of mobile connectivity today and in the future.

New code polarises RICS Telecoms Forum Conference

The following article by Mike Swain, Land Journal Editor at RICS summaries the conference and the Code Forum.

Problems implementing the new Electronic Communications Code dominated discussion at this year’s RICS Telecoms Forum Conference.

The packed hall was divided between operators pleading with all sides to engage with the Code and those representing owners who have become enraged at the way it is working. The result, in many cases, has been a stalemate.

Wayne Clark, of Falcon Chambers, who acts for landowners, gave a run-through of recent judgements on matters such as rights of access and consideration, where the opposing parties are still very polarised.

The new Code was meant to create a better relationship between operators and landowners, Melissa Giordano, Deputy Director, mobile infrastructure and spectrum at the Department for Digital, Culture Media and Sports added.

The intention had been to change the basis of valuation and grant new powers of access.

“Operators kept telling us it had to be easier to get equipment on sites. I am an optimist, but I am not naïve. We know there are fundamental disagreements still,” she said.

Giordano admitted that prices could be “really tough” on landowners but case laws were making progress in interpreting the Code.

“We have to think of our industry as a vital utility and all recognise the importance of telecoms and connectivity.”
Belinda Fawcett, Director of Property and Estate and General Counsel, CTIL

TechTalk Radio chats connectivity with Belinda Fawcett

Written by admin on . Posted in Connectivity, News.

Belinda Fawcett, General Counsel & Director of Property and Estates at Cornerstone, discusses on TechTalk Radio the issues regarding providing connectivity in the UK.

Belinda describes how these challenges have originated from changes in government legislation resulting in a slowdown of infrastructure deals across the country and putting the UK at risk of falling behind other European and global countries. Not ideal with Brexit just around the corner and at a time when mobile and digital connectivity has never been more important.

Listen to the podcast to hear more!

Making sense of 5G

Written by admin on . Posted in Connectivity, News.

Kye Prigg Head of Networks at Vodafone UK Limited, explains how 5G will open up lots of ideas, enabling the development of new applications and the potential to change the technological world.

Joint statement on the Electronic Communications Code

Written by admin on . Posted in Legislation, News.

The Electronic Communications Code (ECC) is in a transitional period and at Cornerstone, we see the importance of keeping our audiences up to date on all progress. The following joint statement extract from DCMS, RICS, CLA and Mobile UK reaffirms their commitments to the Electronic Communications Code.

– Statement Begins –

The reformed Electronic Communications Code (ECC) came into force in December 2017 with the aim of boosting coverage and connectivity across the UK, through a package of measures which Government expects to deliver significant cost reductions to the sector while ensuring that landowners receive a fair payment for allowing their land to be used.

Since the new legislation was introduced, there have been problems with negotiations progressing. While some initial uncertainty is to be expected, Government, regulators, the telecoms sector, independent infrastructure providers and the landowner community, recognise the importance of all parties working collaboratively together, both during this transition period and moving forwards.

We are therefore coming together to reaffirm the commitments made to each other in Ofcom’s Code of Practice, and to reiterate our support for the Government’s ambition to be a leading global economy underpinned by world-class full fibre network and 5G infrastructure. It is essential that parties engage professionally in open and constructive communications. The future needs of customers and the economy are too important for it to be otherwise.

– Statement Ends –

Cracking the Electronic Communications Code

Written by admin on . Posted in Connectivity, News.

With the reform of the Electronic Communications Code (ECC), the Government has updated existing legislation to pave the way for faster mobile and broadband services at lower cost. While network operators have welcomed the changes that came into effect on 28 December 2017, they have had a more lukewarm reception from some landowners and their agents. Here I take a brief look at the key changes.

Why the change?

We are all now reliant on our mobile phones and used to having access to broadband, but the truth is that the UK lags behind Europe when it comes to connectivity. Digital technology and the demand for digital services is developing fast, and we need to be able to move quickly with it. And with 5G around the corner, the industry needs a more straightforward framework under which to operate.

The Government has reformed the previous ECC with the intention of promoting more significant investment in digital infrastructure and encouraging greater network sharing turning connectivity from a luxury for a few to a basic need for all.

What hasn’t changed?

Code agreements must still be in writing, signed by both parties and will continue to bind successors in title and other parties.

Network operators can impose agreements on landowners through the courts where the parties cannot agree on a consensual deal, and operators can retain equipment on land even after the fixed term of an agreement ends.

Code Right

The Code introduces a new framework for agreements between network operators and landowners by giving operators enhanced statutory powers to install, keep, maintain and upgrade equipment as a ‘Code Right’. It also allows operators to assign and share freely. While some of these rights existed under previous legislation, the Code envisages a landowner granting to an operator a much more comprehensive package of rights in return for a payment to the landowner for that agreement and compensating the landowner for its loss – more of that below. In this way, the operator gets what it needs, and the landowner is not out of pocket. Seems to make sense. All ok so far…?

Valuation

This is where it gets a little tricky. In exchange for granting the Code Right, a landowner will receive a payment based on two elements expressly set out in the code: Consideration and Compensation. These two elements seek to bring the payments that operators pay into line with other statutory bodies using compulsory purchase type principles – for example, electricity, gas and water – by imposing a ‘no scheme’ method of valuation.

The Code sets out how consideration – or the price payable for the agreement – is calculated by ignoring the value of the agreement to the operator and how compensation is assessed – that is, the loss to the landowner of the use of that land. These two elements combined, seek to regularise the payment made on each site.

These calculations use established methods of land valuation which are very familiar to the property industry in the UK and are well understood in both compulsory purchase circles and the utility sector. In the telecoms world, however, they are causing some concern to landowners, who are experiencing a reduction in payments. It appears that this is where the battle lines are being drawn.

‘Fair’ sum?

It’s clear that the Government intended operators to pay a ‘fair’ sum to a landowner, but they also recognised that rents would fall considerably. With landowners and their agents now being offered far less than previous rent levels, assessing what that sum might be, and agreeing a figure, is proving a challenge. This is where a dialogue between a landowner and an operator must take place to try and agree on a consensual deal between them. Otherwise, the parties will find themselves in the Lands Tribunal who will ultimately decide for them.

We’re convinced that a constructive dialogue between the parties will help them arrive at a consensual agreement based on a Code calculation of consideration and compensation.

One thing is for sure though; the market needs a stable mechanism for valuing these types of agreements. In nearly everything that we do, we know what a ‘fair price’ is, and digital infrastructure shouldn’t be any different. The sooner we get there, the better!

Sharing, upgrading and assigning

Another hot topic. To encourage greater coverage and network sharing as digital technology evolves, operators now have the right to share, upgrade and assign without consent. This will facilitate advancements in technology and the changing face of connectivity, but it does, however, remove the opportunity for landowners to impose conditions on operators and to earn extra income perhaps. This might be another reason why some landowners and their agents might be feeling a little aggrieved by the Code.

Termination

Code agreements continue until terminated. However, a landowner bound by a new Code agreement will now need to serve a minimum of 18 months’ notice to terminate a Code agreement specifying at least one of four specific grounds – the 18 months cannot expire until after the expiry of the contractual term.

One principal ground for termination is where the landowner intends to redevelop the property. While the same principles are anticipated to apply as those established for ‘Ground (f)’ (Section 30(1)(f) of the Landlord and Tenant Act 1954 after a landlord has served a Section 25 Notice), landowners are nervous about its applicability under the Code. However, if faced with such genuine notice, operators would be well advised to work with the landowner taking into account the redevelopment plans and be prepared to remove their equipment.

Other changes

The Landlord and Tenant Act 1954 does not apply to Code agreements – Code agreements effectively have their own form of security of tenure;

The ability to go to court to have an agreement imposed is not a new concept; only this has now moved from the County Court to the Lands Tribunal.

The Code expressly states that the parties cannot contract out of the Code; and

Broadly speaking, the key changes are not retrospective (there are ‘transitional provisions’ that attempt to govern agreements that fall between the Old Code world and the new Code world).

While operators and landowners might view the Code differently, the Government is expecting its introduction to deliver lower site payments and lead to more significant investment in networks, network sharing and improved connectivity for all of us.

It’s in everyone’s interest to work together for a better connected tomorrow.