Phone mast rent row could hit landowners in pocket

Published on Tuesday 27 July 2010 16:22

RECENT company mergers and amalgamations in the mobile phone industry may be good news for the consumer but it is a different matter out in the country where, it is alleged, these same companies are now using "bully boy" tactics to reduce rents for phone masts.

Threats of a major culling of phone masts are being used to reduce rentals by up to one third of previous levels. Agents for the major phone firms are also aiming to change conditions within leases with no compensation.

Previous agreements that raised rental payments in line with the Retail Price Index are being swept aside as the phone companies try to reduce their costs.

The language used in the telecom agents' letters to landowners is direct and to the point warning that sites may be bypassed in the future. "Any rejection of the revised terms at this time places the operational future of this network site at risk."

The letter continues "As the result of this review may be that the site is no longer required I would be grateful if you could contact me as soon as possible."

Daniel Smith of the Kenneth J Robertson practice based in Bathgate said the letter seemed to be part of a co-ordinated effort by the phone companies to scare landowners in their determination to drive down rentals.

"These tactics, one imagines, are designed to catch out unwary landlords who, believing their site to be at risk, quickly agree to the terms without first seeking expert, independent advice."

He also advised that professional and legal fees incurred with any work on the mast site should be met by the mobile operator. "Remember that they (the companies] approached you and the legal and professional costs of even simple amendments, renewals can soon mount up."

Smith said there was a general acceptance that, with the mergers and company links, up to 10 per cent of all current phone masts would become redundant.

But he believed the companies are trawling through all the sites to see which owners were prepared to negotiate on both rental and conditions.

Smith points out that companies closing down a site will face reinstatement costs of anything between 15,000 and 40,000 so, despite the threat, they will always try to seek a resolution to any rental issues

"If the remaining masts then support additional equipment, there is a strong argument that rents should be increased rather than decreased."

He said that with new technologies such as 3G and WiMax driving the development of mobile communications at an astounding rate, there was little escaping the fact that the co-operation of the UK agricultural community would play a key role in the distribution of high-tech communications media well in to the future.

The Scottish Agricultural Arbiters and Valuers' Association are also very involved with the issue which is affecting landowners in all parts of the country. Martin Cheyne, property director with WHP, who act as agents for several major phone companies, said the companies were renegotiating leases to reflect modern market conditions, and he believed the "vast majority of sites were over rented".