The long-awaited rollout of the 4G telecoms network may bring hope to rural areas with limited or no broadband service.

The 4G ("fourth generation) telecoms network may also offer lucrative opportunities to landowners and rural businesses, says land agency firm Strutt & Parker.

As leading telecoms operators jostle to capitalise on the advances in this fertile market and with the Government injecting substantial investment into improving coverage, landowners should keep a close eye on how they can benefit.

John Hyslop, a land agent in Strutt & Parker's Morpeth office, said: "Advances in computing and telecommunications have fuelled the global demand for greater access to the internet without the need for a physical internet connection. With the advent of internet-enabled smartphones, which now account for around 38% of UK handheld mobile phones, the levels of data downloaded on the move has increased by some 300-400% in the last 12 months alone.

"The emerging 4G technology will be transmitted wirelessly over many kilometres and where possible carried on existing telecoms masts. This promises significantly faster wireless broadband services with speeds up to 230% faster than the network currently in place. It is expected to approach 450% faster by 2020."

Hyslop added: "Mired in reviving a sluggish economy, the Government is also persistently vocal as to the role greater access to the internet can play in promoting a successful UK economy. Already, the UK is slipping behind Europe and the US in the development of 4G networks: the Government and telecoms operators will be equally anxious to close this gap.

"Rural areas with limited or no broadband service should benefit from this Government enthusiasm, especially given a recently announced £150m cash injection into these aptly named 'not spots'. Allocation of this funding is expected to include the development of new broadband carrying telecoms infrastructure in areas of little or no existing service."

Additionally, industry watchdog Ofcom has outlined an ambitious proposal to extend 4G coverage to at least 98% of the population, up from a 95% benchmark proposed earlier last year, he said.

Hyslop said: "Landowners in suitable areas may stand to benefit where there is a need for new mast sites as, in return for the right to utilise 4G, it is anticipated leading players such as Vodafone and O2 could be obliged to commit to the Government's ambitious coverage objective which may require a shake-up of their existing mast sites and infrastructure.

"Additionally, those with existing mast sites should also keep a close eye on developments as well. Many masts may require upgrading and the use of equipment outside of their present allowances, which could offer landlords an opportunity to negotiate more favourable terms and lease payments. On the other hand, it may be prudent for landowners with mast agreements coming up for renewal to secure renewed terms now in case their sites become obsolete following the rollout."

Ofcom is set to auction allocations of the airwave 'spectrum' on which the signals are carried in the fourth quarter of 2012 with a nationwide rollout expected in 2013, said Hyslop. "A pilot scheme presently underway with O2 in London has already revealed capacity issues on the operator's existing network. This may be illustrative of potential opportunities when the scheme is rolled out nationally.

For more information and advice please contact John Hyslop in Strutt & Parker's Morpeth office on 01670 500870.