Decision details

Exemption from publication: There are confidential appendices to this report, which are exempt by virtue of paragraph 3 of Schedule 12A of Part 1 of Schedule 12a of the Local Government Act 1972 because they contain information relating to the financial or business affairs of any particular person (including the authority holding that information).

To agree the proposed terms for new Agreement under the Telecoms Code and instruct in-house Legal Services to complete the Lease.

We propose to renew the Lease to Cornerstone Telecommunications Infrastructure Limited (formerly O2 / Telefonica (the current Tenant) on the terms contained in the Confidential Appendix:
The reduction in rent and more Tenant friendly terms are largely due to the new Electronic Communications Code (“the New Code”) as part of the Digital Economy Act 2017, which came into force on 28th December 2017. This introduced a no scheme method of valuation for assessing consideration of mast or telecommunications sites as well as less restrictive assignment and site sharing provisions. The new valuation approach has resulted in the operators radically reducing rents across their portfolio of telecommunications sites by between 40% and 90%

This agreement has expired and therefore if the Council do not take any action risk is increased of unlawful occupation of the land.

An alternative option would be to not renew agreements with existing occupiers and consider using the land for an alternative use. Whilst achieving a rent in excess of the agreed terms is possible, this would be significantly outweighed by the professional costs in obtaining vacant possession of the mast site from the Operator.

The Operator could also begin proceedings under Landlord & Tenant Act 1954 for a new Agreement to be determined by the County Court on terms that are less beneficial to the Council than proposed above.