Decommissioning threat ploy to drop mobile phone mast site rents

FARMERS who have telecommunication masts on their land have been advised they should resist attempts being made by mobile telephone companies to reduce rents through threats to decommission sites.

That advice has been given out by Ian Thornton-Kemsley, of estate agents Strutt and Parker. Over the past 15 years, he has specialised in issues relating to these mast sites.

Speaking this week, he said that two of the major companies, Vodafone and O2, were seeking rent reductions. They are linking that proposal with one which suggests those landowners taking a reduction in payment might have a better chance of surviving the merging and consolidation of mast sites currently going on.

"The amendments targeted by Vodafone relate to passing rent and permission to share with other operators. There is a veiled threat that the site will be decommissioned (if these are not agreed]," he said

"The letters are aimed at landlords who do not appreciate the specialist nature of the market in the hope of reducing rents."

As an example of the numbers of sites involved where there is an agreement between companies, Thornton-Kemsley said that the recent agreement between T-Mobile and H3G has already led to the decommissioning of some 5,500 of the 18,000 sites they previously operated from. These two companies, he said, have agreed improved terms with rent increases on the sites they retained.

Another agreement between Orange and T-Mobile is currently with the Office of Fair Trading but if it is allowed to go ahead, Thornton-Kemsley believes that it might mean a reduction of approximately 8,000 sites throughout the UK.