Telecoms code Archives - Michael Aubrey Structural Engineers

Falling Revenues As The Impact of the Comms Code Bites

If you own or manage a property portfolio that includes telecommunications tenants you must be having sleepless nights worrying about the loss of revenue.

What’s Changed?

The New Electronic Communications Code (the “Comms Code”) allows for the mobile operators to use “Code Powers” to access sites and demand substantially lower rents at renewal – in some cases 95% lower rents and in one case 97.2% reduction.

What Can You Do To Protect Your Revenue Stream?

We work with property owners to drive a fairer position between operator and landowner.Our business model allows us to offer substantially more consideration and compensation than code valuations.

Recent Case Study

Working with one Public Body, with multiple sites up for renewal, we have successfully maintained revenue at £54,500 in the face of a renewal offer of £5,000!

**Who Are Michael Aubrey Telecoms*?**

We are a Wireless Infrastructure Provider with 30 years industry experience, firstly rolling out networks, over the last 20 years working exclusively for site owners.

We have been awarded code powers by Ofcom to develop and extend an independent network of sites for use by multiple network operators.

Who Do We Work With?

We work exclusively for Local Authorities and Blue light organisations such as the Fire and Police service.

Book A Free 15 Minute Consultation

Talk to one of our experts today and discover how we can help you protect your revenue.

* Michael Aubrey Telecoms is a brand name of Michael Aubrey Partnership

The Electronic Communications Code (the Comms Code) is a set of rights that are designed to make it easier for network operators to facilitate the installation and maintenance of electronic communications networks across the UK.

What Is The New Telecoms Code (Comms Code)?

The Code provides for telecoms operators who are granted rights under the Code, to install and operate telecommunications apparatus such as telecoms masts and fibre optic cables, on land and buildings.

Who Does The New Comms Code Affect?

Property owners who have leases (licences) with mobile operators to install and operate telecoms equipment on their land and rooftops.

How Will The New Telecoms Code Affect UK Property Owners’ Rental Incomes?

When current leases expire the negotiating position taken by operators with code rights is simple; take our very low offer or we will go to tribunal and the valuation rules set out will derive an even lower ‘rent’.

What Do Code Powers Allow

Operators To Do?

New rights make it easier for telecommunications operators to deploy and maintain their infrastructure and it gives them new automatic rights to upgrade and share apparatus.

In summary, the new code will allow the operators to

force a reduction in rental income, as the change in the basis of valuation, will move to a “no scheme” rule reflecting the underlying value of the land.
Operators will be allowed to install telecoms equipment on, under or over land and
gain access to the land to inspect and maintain the equipment.

Click here to read the detail.

What’s Happening In The Market At The Moment?

Where leases are coming up for renewal, operators and landlords aren’t able to agree terms which is leading to stagnation in the marketplace.

Up to a 95% Loss of Income for Property Owners

Property owners are seeing mobile operators offering significantly lower rents than have been previously agreed and the Code has been written to allow operators to force their way onto sites they need at negligible cost.

We are currently managing sites across the UK for numerous “blue light” organisations, Police and Fire Authorities.

Typically where leases have come up for renewal, we are seeing offers of £500 per annum where previous rents passing were £5k, £10k even £15k per annum!

How Can Property Owners Protect Their Rental Incomes?

Our business model allows us to offer substantially more than code valuations, by adopting a fairer position between operator and landowner.

Extended rights allow sub-letting/sharing and upgrading of sites for no additional payment to you as the landowner.

Our model addresses this. Click here to read more.

Are you about to lose 95% of your income?

With the new Telecoms code coming into force this Autumn John Staves gives his opinion on what this new code will mean for site owners.

“I believe that the new Telecoms code will have an adverse effect on transactions; rather than easing the process which is the declared intent of the changes, site owners will be reluctant to agree leases that come under the code and renewals and new site roll out will be delayed as a result.

Costs will increase as a result of more deals being taken to tribunal and the improved mobile services envisaged will not materialise.

Just imagine letting a room in your house to one person and finding that you have any number of unknown visitors coming in and out as they please, without any more compensation being payable to you. You have no power to set the rent or control who visits, whilst your lodger can charge anyone he likes to share the facilities without needing your permission!

Unintended consequences of poorly drafted legislation seem to be the order of the day.”

Last October Thekla Fellas, Fladgate LLP was our key note speaker at our Telecommunications Seminar at Leicestershire Fire & Rescue Headquarters. Thekla has particular expertise in telecommunications disputes under the Electronic Communications Code.

More recently, in September 2017 John Staves attended Thekla’s seminar; The New Telecommunications Code: are you equipped?

To understand the main changes to the code and how the new procedures will work click here

As one of the UK’s leading Telecoms Site Management companies, we provide professional, independent advice to Fire and Police Authorities to maximise the value and performance of their property portfolios.

If you want to find out how we can help you, please give us call on: 0118 962 9666.