Colin Clark, Agricultural Partner at Pagan Osborne gives advice for landowners who have mobile masts on their land in light of the news that up to 8000 may be decommissioned in the planned merger between Orange and T Mobile.
“Recent reports about the planned merger between Orange and T Mobile, which may lead to the decommissioning of 8000 radio masts, is undoubtedly a concern to farmers. The merger or site sharing between other mobile phone operators will lead to the loss of further masts in the future.
“The rent paid for radio mast sites, which are often situated on parts of the farm which are of little agricultural use, have provided a very welcome source of income for farmers. The loss of that income will be a massive blow. For example, a rental charge of £4000 a year is the equivalent of the loss of income from 25 acres of land, growing 2 tonnes of feed barley per acre sold at £80 a tonne.
“If a farmer is approached by a mobile phone company to decommission a mast or site share, they should look at the terms of the lease very closely. Depending on the terms of the lease, the mobile company may still have to pay rent even if they decommission the site. It also might be the case that the company is not allowed to install additional equipment on the masts it wants to keep without the farmer’s consent.
“It may be possible to negotiate an increase in rent if additional equipment is installed or if the mobile company wants to site share with another operator.
“Farmers who have masts in locations which are essential for network coverage may find themselves in a stronger bargaining position.
“The terms of the lease are critical so it is important to take professional advice before agreeing to any changes in the current arrangements.”
For further information or to speak to Colin Clark, please call:
Suzanne Mackie, Indigo, 0131 554 1230