Partner Article

Phone mergers could affect farmers' income

A North East solicitors is advising farmers who have rented out sites for mobile telephone masts to check their legal agreements.

Latimer Hinks Solicitors says landowners run the risk of losing much-needed income due to the current consolidation of the mobile telecoms industry.

The merger of mobile phone companies means that fewer masts will be needed and companies are said to be planning to decommission more than 13,000 such structures nationwide.

Many farmers, including those in the North East, have enjoyed an income boost during recent years by renting out land to companies such as Vodafone, Orange and O2 as a location for a mast.

Neil Stevenson, a Partner at Latimer Hinks, said: “This type of lease agreement is often weighted heavily in favour of the phone companies. Even if the lease’s expiry date is several years away, it is possible that the company may have the right to walk away from the deal if they say the mast is now superfluous to their requirements, or if the site is no longer suitable for operational reasons

“However, on the positive side, some landowners may be able to charge a premium or extra rental if two companies want to share the same mast.

“However, what they are able renegotiate will depend on the details of the original legal agreement and I would, therefore, advise farmers, who find themselves in this situation, to seek the appropriate professional advice.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .