13 hours ago
- Business
- The Herald Scotland
Landlords threaten to walk away from 5G connectivity scheme
Private and public landowners warn they have already lost out on around £200 million each year following significant changes made in 2017.
Changes to the Electronic Communications Code meant telecoms firms were no longer required to pay market rent to landlords, with some landowners witnessing a 90% reduction in annual fees.
It affects landowners including farmers, but also affects councils, charities and small businesses.
In some cases rents originally agreed at around £5,500 per year fell to £3.50 per year, with landowners also stating they feel trapped in the agreement.
The UK Government is consulting on changes to the Product Security and Telecommunications Infrastructure (PSTI) Act that could see landowners refuse to allow the equipment on their property and therefore slowing down key connectivity targets.
Russell Glendinning, managing director of Cell:cm Chartered Surveyors, a firm representing landowners of telecommunications infrastructure , said the implications would be "chilling".
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Mr Glendinning told The Herald on Sunday: "Scotland's digital rollout is being undermined by a failed UK-wide legal framework.
"Changes to the 2017 Electronic Communications Code has significantly strained the relationship between landowners and mobile operators.
"Many site providers have been drawn into lengthy and complex disputes in an attempt to protect operational requirements at their property against operators' technical and operational needs, often coupled with steeply reduced rents - and in some cases, site owners have even been ordered to repay substantial sums.
"This has created a chilling effect on the willingness of both private and public landowners to host infrastructure."
Landowners have urged the UK Government to rethink the legislation and listen to industry voices.
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The National Farming Union (NFU) and the British Property Federation (BPF) has since written to the government, warning that if action is not taken, landowners will walk away and 5G ambitions will be missed, while Scotland's 'fragile' connectivity will deteriorate further.
Underserved parts of Scotland, like the Highlands and Islands and Argyll and Bute are particularly at risk.
However, official statistics also revealed that Glasgow is now amongst the UK's worst five cities for fibre coverage.
While the city is Scotland's largest urban hub, just 57.8% of premises have access to full fibre broadband.
The ongoing row between landowners and telecoms firms has also stalled the UK rollout of 5G, with the UK now ranked 30th out of 39 countries for availability.
Legal disputes have also skyrocketed since the 2017 changes, reaching 1,000 compared to just 33 tribunal cases between 1984 and 2017.
Landowners can challenge the rent cost once the lease comes up for renewal, however the tribunal stage can be costly and off putting.
Mr Glendinning added: 'Understandably, many now view the process as high-risk and low-reward, which has led to real difficulties in securing new sites. That, in turn, has had a catastrophic impact on mobile connectivity – particularly in rural areas and increasingly in urban settings too.
'The PSTI Act doubles down on this framework and there is a serious risk that the dysfunction we've already seen will only escalate.
'In cities like Glasgow and Edinburgh, where the pressures on property and infrastructure are already more acute, the burden placed on landlord is often far greater – and without meaningful reform, it's hard to see how the necessary collaboration can be restored.'
A DSIT spokesperson said: 'Our priority is to continue delivering high quality 5G networks across the UK, which is critical to boosting growth and improving public services for the British people.'
