Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment she has been made of the potential impact of the 2017 Electronic Communications Code on rental payments to telecommunications equipment site providers.

The 2017 reforms to the Electronic Communications Code were intended to make it easier for digital communications operators to deploy and maintain their networks. Those changes included the introduction of a statutory valuation regime, which reflected the government’s view that the cost of acquiring rights to install digital infrastructure on private land prior to 2017 was too high and needed to be addressed. The valuation regime introduced in 2017 is more closely aligned to those for utilities such as water and electricity and reflects the fact that access to good quality digital services is an increasingly critical part of daily life for residents across the UK.

The Government continues to believe that the framework strikes the correct balance between ensuring individual landowners receive fair payments for allowing their land to be used and encouraging the industry investment needed for consumers across the UK to have access to fast, reliable digital services. Data provided to DCMS shows that so far this year agreements have been reached on 107 new sites, with heads of terms being agreed on a further 66. In relation to existing sites, 533 renewal agreements have been concluded so far this year, with heads of terms agreed on a further 119 sites. The data also shows that there has been a year on year increase in the number of concluded agreements since 2020. We think this reflects informal feedback we have received from all stakeholders suggesting that the market is adapting to the valuation framework.

Since the introduction of the reforms in 2017 we have engaged with and listened to stakeholders to understand the impact of the reforms in practice. This has included a formal consultation on further changes to the Code, which led to the provisions in the Product Security and Telecommunications Infrastructure Bill, as well as ongoing (and continuing) engagement with stakeholders throughout the passage of the Bill.

In parallel, DCMS officials have convened monthly Access to Land Workshops over the last 12-18 months, which cover a number of workstreams and attract attendance from stakeholders across the telecommunications industry, including site provider representatives. I am pleased to say that these workshops have made excellent progress and one of the outputs of this work is the creation of a new industry body, the National Connectivity Alliance, which in time will continue this work independently of DCMS.

Any impacts on the rights of individual property owners have been carefully considered and balanced against the public benefits of improved connectivity. In particular, where measures in the Bill have the potential to be applied retrospectively, the rights of landowners were given careful consideration.

The Government does not intend to separately or specifically review the Electronic Communications Code rental payments market. However, the government will continue to carefully monitor the effectiveness of this legislation. For example, officials will continue to engage with stakeholders in the period leading up to the Bill’s implementation and subsequently, to understand how the new provisions are working in practice.