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Strutt & Parker News
The Telecoms Market Is Still Strong, New Survey Shows
16 September 2007
Sector:
Telecoms - Press Release

Leading property agents Strutt & Parker have published their most recent survey on the state of the market for Telecommunications installations in the UK.

Complied with intelligence gleaned from more than 4,000 transactions between landlords and telecoms operators, this survey updates the Firm’s 2004 report and shows how the market has moved in that period.

The survey – which is available free of charge - shows that there is still steady growth in this market, and rents are increasing, especially for roof-top sites. As the author of the report, Strutt & Parker’s Robert Paul, says; ‘Despite a slow down in the rate of acquisitions rents are rising. We are seeing rents of up to £6,000 for masts on green field sites, now as the norm rather than the exception – a rise of 20% from our 2004 survey. That figure can rise to £16,000 in urban locations, or more in city centres.

‘The survey also shows that operators are trying to change the rules and are tampering with what have always been seen as standard lease terms. Typically they are trying to demand wider equipment rights and reduce the control that landlords may have.

‘Landowners do need to make sure that they are professionally represented in negotiations with the telecoms companies. When appointing an agent there is no substitute for experience.

‘Landowners need to look very carefully at all approaches from operators. Often any proposed change to the site will merit a new lease, and many leases agreed in the 1990s are due for renewal. There is pressure on rents paid by the operators, who try to try and dampen the market, especially by threatening to take negotiations to arbitration. Firms such as Strutt & Parker can get a positive result for a landowner at arbitration – and can reclaim costs from operators who have acted unreasonably.

‘Strutt & Parker are acknowledged experts in representing landlords in negotiations with phone operators, and offer a free audit of the lease on a site, without any obligation. Crucially, the Firm works in liaison with the legal profession and does not try to supplant them in this process.’

As well as providing a useful update and insight into the telecoms market, Strutt & Parker's survey also highlights some serious pitfalls to be wary of as well as opportunities for landowners to increase revenue from sites or to renegotiate terms. Non-disclosure of site sharing income, decommissioning, de-mergers and assignments within the industry are just a few of the opportunities covered in the Survey.

Ends

Notes to Editors:

The telecoms sector is worth £20billion and is expected to rise to £25billion by 2010
Strutt & Parker Telecoms specialists act only for landowners
More than 30% of all UK phone traffic is from a mobile phone
Height is now a key factor in negotiations, with rents for 30-metre masts now double what can be expected for a 15-metre mast
Strutt & Parker’s Telecommunications Group comprises 24 dedicated professionals
The Survey is available free of charge from any Strutt & Parker office. Visit the website for details of nearest offices – www.struttandparker.com.

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Telecommunications Survey
An indepth review of the telecoms industry. Compiled from over 4,000 transactions, across the United Kingdom.
Telecommunications Survey
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