Cleaver Fulton Rankin recently invited Cornerstone to participate in a podcast series for the Property & Construction Sector.

Our Asset Manager at Cornerstone, Donna Sowerby, took part in the podcast and shared her experience and thoughts on how the telecommunications sector is evolving in Northern Ireland. The podcast discussed the impact of the revised Code legislation, the current challenges faced in the industry, and what we can do to ensure communities gain the benefits of digital connectivity in Northern Ireland.

Listen to the podcast here.

In 2017, we experienced a change in how telecom infrastructure providers and site providers complete site agreements. This change was facilitated through the Electronic Communications Code legislation.

The Government revised the Code to make it quicker and easier to roll out mobile infrastructure on sites, and Cornerstone has fully supported this by changing the way we complete agreements.

As with all changes, it can bring challenges. Our Property and Estates team at Cornerstone has been integral in managing this change for our estate of over 25,000 sites. We have been working with the industry and our landlords to deliver digital services efficiently across the UK.

Understanding the legislation and using it for site agreements has been a learning journey for Cornerstone. However, we embrace transformation and are using the Code to help manage the relationship with our landlords.

With the support from our landlords, we are playing our part in providing our communities with the mobile connectivity they want. Upon completing Code agreements, we can deploy or maintain our telecoms infrastructure on greenfield sites, rooftops, or street works, to enable our Operators to deliver their network service.

We must continue building stronger connections with our landlord community to achieve the Government’s digital ambitions. We understand the Code still has its challenges, but we believe working together will help deliver a better-connected society.

Julian Shariff, Head of Property & Estates, Cornerstone

We’re delighted to be featured as one of the lead articles in this quarters Planning Market Insight Report for December 2021. It has been sent to everyone who uses the UK government’s Planning Portal digital tool for submitting planning applications and covers every single UK development type from housing to renewables to commercial to telecoms. 

It’s brilliant to have this opportunity to share with a huge audience the amount of work and investment that is taking place to deliver 5G for the benefit of society and our economy. We are pleased to give you the opportunity to read the full interview below.

Ten months on from our last look at Telecoms data, we have revisited the topic to see how the market is progressing. We spoke to Sean McHenry, National Planning and Community Manager at Cornerstone. Cornerstone is the leading UK mobile infrastructure services company providing passive infrastructure to support the UK’s leading wireless operators and enabling the digital lifestyles of the connected population.

We have noticed that submissions throughout 2021 are tracking very closely to the figures we have seen in 2020, is this due to the continued upgrade to the 5G networks?

While 4G networks continue to be upgraded, it is certainly the rollout of 5G that is the main reason behind the increase in both prior approval and full planning applications. At the same time, upgrades to existing 4G networks also continue. Major cities across the UK have seen a vast amount of new and upgraded streetworks sites for new 5G provision. New sites require applications and, while there are useful PD rights for the replacement of ground based sites, many of the upgrade works an application due to width and height parameters related to the replacement of infrastructure. For example, in England we can replace a ground based mast up to 33% wider than existing as permitted development, but anything above this will require a full planning application. Many of the new structures required for 5G went of the 33% width parameter, necessitating application submissions to the LPA.

Due to these permitted development width parameters and the increased volume of equipment needed for 5G delivery, especially on sites shared by more than one operator (something that has been advocated for in planning policy and guidance), there has also been an increased necessity to submit full planning applications for the upgrade of greenfield sites too.

As we have moved further through 2021, the focus has switched to upgrading existing rooftop and non-streetworks ground-based sites, to facilitate 5G provision. Changes in legislation interpretation relating to rooftop deployment, following a High Court Judgement in 2018, has necessitated an increase in applications for prior approval.

Due to the closure of many LPA offices over the course of the pandemic as employees moved to home working, there continues to be an increased volume of applications being submitted via the Planning Portal as opposed to paper submissions.

Looking towards the future now, what would be your predictions for 2022 and beyond? Are there any particular regions within England and Wales that are likely to see greater activity due to a focused approach to the upgrade?

The rollout of the 5G network is set to continue and is likely to ‘ramp up’ in 2022. This will mean a high volume of infrastructure proposals will be submitted via the planning process with many applications being required.

A revision to Part 16 of the English GPDO is due to be adopted in early 2022, which will impact both the type and number of new applications. Based on the amendments that the UK Government has consulted on, it is likely that many proposals that currently need full planning may move to prior approval, and many proposals currently requiring prior approval may move into straight permitted development. This is seen as a really positive change, aligning the process with other parts of the UK and promoting the rollout of 5G, which will bring with it significant socio-economic benefits for the UK at a local, regional and national level, especially with IoT applications and post-pandemic recovery.

Following on from the previously mentioned Government consultation, the width and rooftop restrictions may be reduced, removing the necessity for many of the applications we are currently seeing as proposals move into straight permitted development. While the volume of infrastructure deployment and 5G service provision is due to increase, the number of applications may reduce across England – something that will be welcomed by the telecoms industry as it will facilitate faster rollout of new technology and also likely to be welcomed by LPAs as it may relieve pressure on resources, negating the need for the assessment and determination of relatively minor proposals.

It is likely that 2022 will continue to focus on deployment within the major UK cities before we begin to deploy in smaller cities and large towns. In terms of rural deployment, 2022 will see a volume of applications go in as part of the ‘Shared Rural Network’. The Shared Rural Network is £1 billion deal between UK Government and the 4 UK Mobile Network Operators, that will make poor and patchy rural phone coverage a thing of the past. The ambition is to make sure everyone can benefit from fast services on the go – from those running small businesses to people shopping or booking travel online to speaking to friends and family. It will spur economic growth and close the digital divide across the country through better connectivity.

This project will deliver much-needed 4G superfast mobile broadband connectivity to the most rural and remote communities across the UK. The majority are expected to be applications for prior approval, but a number will require full planning applications.

We understand the importance of community engagement, especially when it comes to proposing new plans in local areas and gathering support from local bodies. Can you explain a little more about what Cornerstone’s approach is?

Our approach to local community engagement is outlined in the ‘Code of Best Practice’, although each UK nation has their own version of this document and it can be titled differently. These codes of practice provide templates and guidance on siting and design as well as commitments for community consultation. In practice, engagement is usually seen in the form of letters and drawings being sent to representatives such as LPAs, Ward Councillors, Assembly Members, MPs, Community Groups and Resident Associations, Parish Councils and Schools.

It is accepted industry-wide that this engagement process is most productive when working with community representatives as opposed to individuals, and occurring pre-application. The process usually involves outlining the intention to deploy mobile infrastructure and offers further engagement with a date we request comments by.

The UK Governments are due to publish a new ‘Code of Practice’ document in parallel with the new Part 16 GPDO revisions which may amend some of these community engagement principles. Cornerstone have worked closely with the UK Governments and other stakeholders on this document. In March of this year, and also following significant engagement with Cornerstone, Welsh Government published their new Code of Best Practice Document. Scotland are due to publish their new Planning Advice Note (PAN62) early in 2022 to guide community engagement. We are hopeful that Northern Ireland will agree a review of their Development Control Advice Note (DCAN 14) as part of an upcoming ‘Mobile Action Plan’ and this may also see revisions to community engagement principals there.

Alongside working with local communities, we also strive to work closely and in collaboration with LPAs. Given the high volumes of 5G and SRN deployment, we look to engage LPAs and LA Economic Development Departments in ‘pre-rollout’ meetings so they can understand upcoming deployment plans, siting and design rational alongside what they can expect from us in terms of planning applications and permitted development notifications.

Sean McHenry, BSc (Hons) MRTPI, National Planning and Community Manager at Cornerstone

Over 95% of households in the UK own at least one mobile phone. The ubiquity of mobile telecommunications means that it is an essential element of modern life. The Welsh Government is committed to supporting the rollout and upgrade of the mobile phone network.

Produced jointly between the Welsh Government, the planning authorities and the mobile industry, the Code of Best Practice on Network Development for Wales has been updated to facilitate the smooth rollout and upgrading of mobile telecommunications apparatus in Wales. This document replaces the Code of Best Practice published by the Welsh Government in 2003.

The intent for this Code of Best Practice is to:

• support the rollout of mobile phone infrastructure and to provide guidance with regards to the complex requirements associated with network deployment;
• set out an engagement framework for mobile network operators and planning authorities when considering applications for prior approval and/or full planning permission for the improvement of mobile networks;
• seek to avoid areas of conflict and to minimise any perceived adverse impacts with the provision of telecommunications equipment;
• and support a more collaborative approach to the deployment and improvement of digital connectivity throughout Wales.

The document provides guidance on the delivery for mobile telecommunication apparatus and covers areas including “Siting and Design” and “Consultation & Application.”

Cornerstone is a key enabler in delivering and maintaining the mobile infrastructure and fully supports the Code of Best Practice to help provide better mobile connectivity across Wales.

Download the Code of Best Practice

In this article Carlos Pierce and Jacinta Conway review how the Court of Appeal took a restrictive approach to deciding whether an operator has the ability to renew a telecommunications lease protected by Part II of the Landlord and Tenant Act 1954 (“1954 Act”) under the Electronic Communications Code (“the Code”) in Cornerstone Telecommunications Infrastructure Limited and (1) Ashloch Limited and (2) AP Wireless II (UK) Limited [2021] EWCA Civ 90 (“Ashloch”).Read the full article here

Vodafone Limited (“Vodafone UK”) and O2 Telefónica UK Limited (“O2 UK) announced today that they have signed agreements to commercialise Cornerstone Telecommunications Infrastructure Limited (“Cornerstone”), the 50:50 owned joint venture company that owns and manages their passive tower infrastructure in the United Kingdom. 

Vodafone UK and O2 UK have each entered into long-term Master Services Agreements (each, an “MSA”) with Cornerstone, which have initial terms of 8 years from 1 January 2021, with three 8-year renewal periods, and which establish Cornerstone as a preferred supplier of new sites for both operators. 

Vodafone intends to transfer its 50% shareholding in Cornerstone to Vantage Towers in January 2021. 

Key highlights

• #1 tower infrastructure company in the UK with c.14,200 macro sites with a portfolio lease up rate of 2.0x and c.1,400 micro sites 
• Adjusted FY20 pro forma adjusted EBITDA after Leases (“Adjusted EBITDAaL”) of £111 million 
• Commitments for c.1,200 new macro sites by FY25 and c.1,950 new passive tenancies on existing sites by FY24, with an expected additional run-rate. Adjusted EBITDAaL contribution of approximately £17.5 million by FY26 (100% basis) 
• Attractive medium-term revenue and recurring free cash flow growth outlook, supported by new build macro sites, committed new passive tenancies and rural white spot coverage obligations
• Opportunity for additional sites and passive tenancies with Cornerstone well placed to capture a significant portion of the additional market tenancies required for densification and coverage in the UK

Future operations

The existing senior management team, led by Rhys Phillip, CEO, will continue to lead Cornerstone through and beyond this period of transition and will remain focussed on providing an excellent customer experience while seeking opportunities to grow the business and increase shareholder value.

Cornerstones relationships with key partners, suppliers and landlords remain unchanged by this announcement and we look forward to working with them to champion Digital Britain.

Rhys Phillip, CEO Cornerstone commented “This is a great step for Cornerstone as we continue our evolution and provides an opportunity to play an even more effective role in the development of Digital Britain”

For more information email news@cornerstone.network

To read the Vodafone Group press release, please click here.

To read the Telefónica press release click here.

To read the Vantage Towers statement click here.

“Levelling up” agenda and economic recovery at risk if 5G rollout veers off track, says new CPS report

• Delays to the rollout of 5G could cost the country tens of billions of pounds in lost economic output.
• The delivery of 5G infrastructure faces many challenges, including unclear legislation, disruption to the 5G equipment supply chain and new demand challenges posed by the Covid-19 pandemic.
• Targeted amendments to the Government’s Electronic Communications Code could speed up 5G rollout and provide a £41 billion boost to the UK economy by 2027.
• A faster 5G rollout will help drive a stronger UK recovery whilst providing an essential tool to ‘level up’ the regions.
• Without action from Government, over 11 million households and businesses could see delays in receiving the mobile connectivity they need.
• The next few years are critical for economic growth and recovery – immediate action is needed to capture the full benefit from this vital new technology.

Delays to the rollout of 5G could cost the country tens of billions of pounds in lost economic output, according to a new report by the Centre for Policy Studies. In the CPS report ‘Upwardly Mobile: How the UK can gain the full benefits of the 5G revolution’, former Government advisers Alex Jackman and Nick King argue that Government’s ‘levelling up’ agenda and the UK’s recovery from the Covid-19 pandemic is at risk without a faster 5G rollout – to the tune of £41 billion.

The delivery of 5G infrastructure is stalling. The set of rules meant to pave the way for the smooth rollout of the next generation telecommunication network, the Electronic Communications Code, is clearly not working as intended. Pressure on the rollout will only increase with the phasing out of Huawei from 5G infrastructure by 2027.

The report highlights that if delays continue at their current rate, by 2027, over 11 million households and businesses could be missing out on vital digital connectivity. Improving digital infrastructure supports the Government’s ‘levelling up’ agenda, by helping local areas to retain and attract businesses and talent as well as by reducing regional inequalities. However, without reform to existing legislation, millions of households and businesses will suffer.

Using analysis by the independent consultancy Policy Points, the report estimates that if 5G coverage reaches a quarter more of the population than the Government’s current target of 51%, it will produce GDP gains of £41.7 billion by 2027. It highlights that the difference between the UK being a leader and a laggard in 5G adoption could be as much as £173 billion in incremental GDP over the coming decade, as estimated by the Future Communications Challenge Group.

The manufacturing, construction and agricultural sectors have been hit particularly hard by the pandemic, and these would benefit significantly from improved connectivity. However, onerous planning rules and loopholes in existing legislation are slowing down the infrastructure upgrades needed to make the most of this mobile revolution in these much-needed industries.

To overcome these deployment barriers, Jackman and King are calling for urgent reforms to the Electronic Communications Code and national planning rules to speed up the rollout of 5G, unlock its potential and stimulate growth as the country recovers from the economic impact of Covid-19. It calls for sustained public sector leadership to deliver this, recognising that supporting digital infrastructure is one of the key things the Government can do that costs little, boosts growth and helps ‘level up’ the UK.

The report warns that without such efforts, the UK could miss its 2025 deadline for gigabit connectivity and 2027 target for 5G coverage, putting the potential economic gains at risk. It argues that policymakers must learn from the 4G rollout and remove the barriers to deployment. While 5G promises to create economic benefits through increased capacity, reliability and speed – vastly improving business productivity and removing barriers imposed by poor digital connectivity – the system is plagued by red tape.

Report author, Alex Jackman, former digital adviser to the Government, said:

“Digital networks and the services they support have underpinned our resilience to Covid-19 and they will drive our recovery. By expanding them, we deliver not only immediate benefits but also the essential foundation stone for 5G. This is no time for the government to be passive on the deployment environment – the difference between the UK as a 5G pioneer and ceding leadership to others is as much as £173bn.

“Productivity gains to business, equality gains for regions and economic gains for the country are only as achievable as the networks we can access.”

The Rt Hon Patricia Hewitt, Speed up Britain’s Campaign Chair, said:

“There aren’t many low-cost ways to unlock serious economic growth, but small changes to the Electronic Communication Code could unlock billions of pounds in our economy, drive the UK’s COVID-19 recovery, and deliver significant regional growth.

“All parts of the UK can benefit from this fantastic technology – but the Government needs to act now to avoid being left behind in the digital revolution.”

Minister for Digital Infrastructure, Matt Warman said:

“It is our national mission to futureproof the UK’s networks with revolutionary 5G technology. Thanks to government and industry action 5G is available in more than 70 towns and cities.

“Alongside record amounts of funding, we are exploring how to bust any barriers holding back industry from speeding up rollout. We’ve committed to reforming planning law and to consult on whether further reforms to the Electronic Communications Code are needed and will consider the points raised in this report carefully.”

-ENDS-

Notes to Editors

• ‘Upwardly Mobile: How the UK can gain the full benefits of the 5G revolution’ is available in full here
• This report was supported by Speed Up Britain, a cross-industry, non-partisan organisation, campaigning for better mobile connectivity in every part of the UK.
• Alex Jackman was special adviser to the Secretary of State for Digital, Culture, Media and Sport between 2018 and 2019.
• Nick King, CPS Head of Business Policy, was a Government special adviser in three different Departments from 2012 to 2018.
• Alex Jackman, Nick King, and Patricia Hewitt are available for interviews.
• For media requests or further information, please contact the Centre for Policy Studies Press Office on 07540 797875 or email robyn@cps.org.uk
• The Centre for Policy Studies is Britain’s leading centre-right think tank, named by Conservative MPs in polling by ComRes as the most influential think tank in Westminster. Its mission is to promote enterprise, ownership and opportunity. ‘Going for Growth’ is its new flagship project, focusing on how to achieve the strongest possible recovery after the coronavirus crisis.

As 5G technology is deployed across the country, more and more services are becoming available, gradually transforming our lives. For instance, educators are exploring the use and value of Virtual Reality (VR) technologies in learning, delivered across the 5G network. 5G’s ability to provide real-time information (low latency), ultra-fast speeds (critical for high definition images and video), increased capacity and security can allow, for example, engineers to receive real-time instructions on how to fix a machine on a production line.

Health care is also undergoing a rapid digital transformation. We are all becoming used to relying on remote healthcare services, such as virtual GP appointments, and ordering online deliveries of medical supplies. Trials have shown that connecting ambulance crews to expert resources using 5G allows paramedics to work with doctors and conduct specialist procedures in real-time whilst on the road. 5G is also providing the necessary infrastructure required to deliver remote health services over the next decade.

However, there are members of the public that have significant concerns about 5G and health. Over 20% of the queries the Cornerstone Community team receives mentions this issue. Recent nationwide incidents of arson and vandalism have shown that these concerns have a real effect on our network of base stations. We know that many people receive their health information from social media platforms which are hardly regulated and make it difficult to validate any ideas presented.

So, what do we know, factually about 5G? 5G is like other forms of radio frequency signal used in communications, such as 4G or WiFi. Although 5G is relatively new, this means there is already lots of information on how it interacts with our bodies. Various international assessments have concluded that below the International Commission on Non-Ionizing Radiation (ICNIRP) Guidelines, there is no evidence of adverse health effects regarding wireless networks – including 5G. In light of specific concerns about 5G signals, Public Health England (PHE) commented in 2019:

“It is possible that there may be a small increase in overall exposure to radio waves when 5G is added to an existing network or in a new area. However, the overall exposure is expected to remain low relative to guidelines and, as such, there should be no consequences for public health” Gov.UK Guidance on 5G technologies: Radio waves and health.

This year, in 2020, the ICNIRP updated their safety guidelines. ICNIRP Chairman, Dr Eric van Rongen stated ‘When we revised the guidelines, we looked at the adequacy of the ones we published in 1998. We found that the previous ones were conservative in most cases, and they’d still provide adequate protection for current technologies…However, the new guidelines provide better and more detailed exposure guidance in particular for the higher frequency range, above 6 GHz, which is of importance to 5G and future technologies using these higher frequencies. The most important thing for people to remember is that 5G technologies will not be able to cause harm when these new guidelines are adhered to.’ 

Ofcom, the regulator for the communications services, undertook measurements of electromagnetic fields (EMFs) around 5G base stations. In 2020, they noted: “In all cases, the measured EMF levels from 5G-enabled mobile phone base stations are at small fractions of the levels identified in the ICNIRP Guidelines”. Download the Ofcom EMF Test Summary.

In common with all mobile phone base stations, Cornerstone sites with 5G technology are checked and certified for ICNIRP compliance. We are increasing the amount of information on 5G available to the public via factsheets and planning documentation.

You can find further information on 5G at the Mobile UK website: https://www.mobileuk.org and from Cornerstone’s Community Relations team at community@ctil.co.uk.

Watch our CEO, Rhys Phillip, take part in a TMT Finance hosted panel discussion about mobile towers – capturing the next phase of growth – with Oscar Pollarols, Global Commercial Director of Cellnex and Scott Coates, founder of Wireless Infrastructure Group. 

These leading industry players talk about their priorities to optimise growth, how funding and valuations differ between independent and captive tower companies, and what they think the impact of 5G will be to the industry.

You can view the video in full by visiting: TMT Connect

Below is a summary of the key points:

• Cornerstone continues to consolidate its position as the leading TowerCo in the UK
• Cornerstone continues to be focused on ensuring it’s itinerary is fit to be a platform for growth. This means: Right people, right data management and governance, efficient work processes, right partnering relationships etc
• We believe there is significant growth to come in the UK from densification of the active networks, 5G roll out and then, in the medium term, small cells
• Valuations are comparable for captive TowerCos and for Independent TowerCos – both have the same growth opportunities, the same need to invest on robust business cases etc. Valuation can be affected by the degree of control that shareholders wish to retain over the captive TowerCo and where to strike the balance between operational control and value.

In a bite-sized video about 5G, the GSMA takes a global view in its narrative. The video opens with a statement that 5G will transform all our lives in how we interact with the world. It explains how smart antennas and small cells will provide the signaling capacity to work when needed, performing very much like a flashlight.

Safety concerns are addressed through the International Safety Guidelines that protect consumers by setting limits on exposure to electromagnetic fields. At their last update in 2020, no established health risks were found for people using a mobile device, with exposure levels, including 5G, below the guideline levels. Public health officials and experts also support this view.

Encouraging governments around the world to adopt the International Safety Guidelines, will enable 5G, and the benefits it can give to be delivered quickly and safely.

During this challenging time presented by the spread of coronavirus (COVID-19), Cornerstone is following the advice of the UK Government and Public Health England.

Recognised as a critical sector by the government, the telecoms industry is working together to continue to provide the UK with the connectivity it needs at this time.

Having access to emergency services, the ability to work at home remotely, and digital social interaction is crucial for our communities today.

To help drive the continuous work needed by the telecommunications industry, the Department of Culture, Media & Sport (DCMS) has issued guidance for telecommunications infrastructure deployment in England.

The guidance outlines:

• What the regulations mean
• Guidance for Local Authorities and landowners
• Emergency access provision
• Agreements between landlords and telecommunications network providers
• Streetworks
• Public health considerations

Read the full guidance here.

Download the latest report by Addleshaw Goddard, which features contributions from over 80 industry experts, and thought leadership pieces on how 5G will impact cities, housing, offices, retail and logistics. Belinda Fawcett from Cornerstone has contributed to the report, giving insight on how infrastructure plays a vital part in the development of 5G. 

Download the report: https://www.addleshawgoddard.com/5greport/