Telecom Operators v Property Landlords

Chris Stratton - 14 July 2010

As a Chartered Surveyor and Town Planner that 'went native' and joined the Telecommunication Industry around ten years ago, I was flattered to be asked to speak on technology developments and their affect to the Property Profession's Henry Stewart Conference in London earlier in April.

The leading lights of the profession were there; the speakers are at the cutting edge of current developments. One was representing parties to the legal case that may result in a re-drafting of the Telecommunication Code on Operator's rights. Another has advised Government on Telecom Policy, turning it into legislation.

Listening to the solicitors, barristers and other surveyors speaking, before my turn to take to the platform, I was wondering if I had got my presentation right. The theme was clear. Operators should not expect to bully land-owners/site providers into accepting rent reductions. Site Providers had the (dreadfully drafted) law on their side and should stand up to aggressive, wealthy corporations. I knew I had fulfilled my brief but I detected that my message was not necessarily what the room was wanting to hear.

My presentation explained how Operators, generally, are being squeezed by reducing income (due to competition) and increasing requirements for capacity, driven by the explosion of smartphone device requirements. This was evidenced by independent research from OFCOM and an explanation of the costs of replacing a copper based backhaul circuit with fibre. These pressures demonstrated that the Operators have to drive costs out of their business, wherever they can. The audience response appeared 'muted'. I await the feedback with interest.

When I first came into the industry, it was clear that Operators were more focussed on the technology challenges than the property based constraints on their roll-out. Advantage was immediately taken by some switched-on companies and individuals who 'removed town & country planning and site provider constraints' for them. Operators paid them handsomely for achieving this. They still don't understand the property world. Rents and the costs associated with property therefore remain a soft target for Chief Finance and Operating Officers, who do understand the high costs involved.

Ten years in, the industry allows me to see both sides of the argument. Neither side understands or particularly wants to deal with the other. I suspect that continuing with the adversarial approaches from both sides may leave the lawyers in the audience at the Conference in the happiest position, after all.

Add a comment

Comments on this posting