Landowners Confront Financial Squeeze as 5G Rent Reductions Take Effect
Landowner groups across the United Kingdom are raising urgent concerns as the government pushes through significant rent cuts for mobile phone mast sites, with reductions of up to 90% set to impact thousands of agreements from April. The move, which will affect approximately 15,000 existing masts, represents a major shift in the telecoms landscape, bringing legacy contracts under a new regulatory framework.
Operators Gain Leverage as Legacy Agreements Are Reset
Mobile network operators are now empowered to reopen decades-old mast agreements and reset rents at substantially lower levels, many of which were originally signed with farmers, schools, hospitals, and small businesses. This change promises to lower fixed costs for listed telecoms groups while providing greater leverage over infrastructure estates, potentially freeing up capital for costly 5G network upgrades across the nation.
The reforms are described as the final implementation step of legislation approved by Parliament in 2022, rather than an extension of existing policy. A spokesperson for Mobile UK told City AM that "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." They added that "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 and Rural Connectivity Risks
However, landowner organisations are sounding alarms about the potential financial impact, warning that reduced payments risk diminishing the supply of mast sites, particularly in rural areas where connectivity is already challenging. Survey evidence suggests more than one in three landowners would consider refusing to host mobile masts if their agreements are reset under the new terms.
Rachel Hallos, vice-president of the National Farmers' Union, emphasised that "the change will undoubtedly damage connectivity at a time when it is most needed for growing farming businesses and the wider economy." This sentiment is echoed by individual landowners with long-standing mast agreements.
Roger Foxwell, a former Somerset farmer who has hosted masts for over 25 years, revealed that rents on his remaining sites have already fallen by approximately 90% 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 explained.
Bill Clarke, a former dairy farmer in Cornwall, shared his experience of a mast agreement from the 1990s that was originally worth £4,800 annually but was later reset to just £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 and Implementation Process
The reforms are being introduced through commencement regulations under the Product Security and Telecommunications Infrastructure Act, meaning they will take effect without requiring a new parliamentary vote. A spokesperson for the Department for Science, Innovation and Technology stated that "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."
The department acknowledged "the vital role landowners play in helping us achieve our ambition of high-quality 5G coverage across all populated areas by 2030" and emphasised that they have "worked closely with stakeholders to ensure the reforms strike the right balance."
Ministers confirmed last week that they are still considering when to activate Section 70 of the Act, which would grant Ofcom a formal role in handling complaints where operators fail to follow the code. Without this mechanism, landowners say disputes often end up in tribunal proceedings, with more than 1,000 cases brought since the original reforms compared to just 33 in the previous three decades.
Broader Context of UK Mobile Performance
These changes arrive as new data from Ookla reveals that while UK mobile speeds are improving, the country still ranks 57th globally, slipping behind as other nations upgrade their networks more rapidly. This performance gap highlights the ongoing challenges in achieving comprehensive 5G coverage and maintaining competitive connectivity standards across the United Kingdom.
The tension between reducing operator costs to facilitate infrastructure investment and maintaining fair compensation for landowners continues to shape the evolving telecoms landscape, with significant implications for rural connectivity and the broader digital economy.
