Landowners hit as government pushes through 5G rent cuts
Mobile network operators are set to cut rents on around 15,000 existing phone masts from April, City PM understands, dragging decades-old agreements into a new regime that has already allowed payments to landowners to be cut by up to 90 per cent.
The move will bring legacy mast contracts, many signed with farmers, schools, hospitals and small businesses, under the post-2017 telecoms framework.
Meanwhile, it will grant operators the right to reopen agreements and reset rents at far lower levels.
For listed telecoms groups, the change promises lower fixed costs and greater leverage over infrastructure estates, helping to free up capital as the industry pushes ahead with costly 5G upgrades.
The reforms are said to form the final step in implementing legislation approved by Parliament in 2022, rather than an extension of policy.
“The government is taking necessary action to ensure a streamlined and effective legislative framework that benefits landowners, the mobile industry and communities across the UK”, a Mobile UK spokesperson told City PM.
“This welcome move will unlock essential connectivity for 15 million customers, providing clarity and consistency and enabling mobile network operators to continue investing and improving services.”
Landowners warn of site withdrawal
But landowner groups warn the financial impact risks reducing the supply of sites, particularly in rural areas, at a time when the UK already lags European peers on mobile performance.
Survey evidence seen by City PM suggests more than one in three landowners would consider refusing to host mobile masts if their agreements are reset.
Rachel Hallos, vice-president of the National Farmers’ Union, said: “The change will undoubtedly damage connectivity at a time when it is most needed for growing farming businesses and the wider economy.”
Roger Foxwell, a former Somerset farmer who has hosted masts for more than 25 years, said rents on his remaining sites had already fallen by around 90 per cent since earlier reforms.
“What’s most frustrating is that landowners like me have no formal way to raise complaints or challenge how operators are behaving”, he said.
Bill Clarke, a former dairy farmer in Cornwall, said a mast he agreed to host in the 1990s for £4,800 a year was later reset to £1,500.
“You either accept a huge cut or face a legal fight you can’t afford,” he claimed. “That leaves people like me losing faith in the system altogether.”
Complaints gap
The reforms are being brought in through commencement regulations under the Product Security and Telecommunications Infrastructure Act, meaning they will take effect without a new parliamentary vote.
A spokesperson for the Department for Science, Innovation and Technology, told City PM: “The provisions received full parliamentary scrutiny when the Act was debated and approved by both Houses, we are now bringing them into force as Parliament intended.”
“We recognise the vital role landowners play in helping us achieve our ambition of high-quality 5G coverage across all populated areas by 2030, and we have worked closely with stakeholders to ensure the reforms strike the right balance.”
Ministers also confirmed last week that they are still considering when to activate Section 70 of the Act, which would give Ofcom a formal role in handling complaints where operators fail to follow the code.
Without it, landowners say disputes often end up in tribunal.
More than 1,000 cases have been brought since the original reforms, compared with just 33 in the previous 30 years.
The changes come as new data from Ookla shows UK mobile speeds improving but still ranking 57th globally, slipping as other countries upgrade faster.