Business news

Farmers warn of risk of 5G rollout as mast rent cuts 90%

The UK’s ambitious ambitions will derail the risk of national 5G coverage as farmers and rural landowners make in-depth cuts on rents paid for custody of mobile masts.

Thousands of pounds of rent were once cut by up to 90% of rent under laws aimed at accelerating the introduction of digital infrastructure. In Cornwall, a farmer said his rent was reduced from £8,500 to £750, while another in Dorset had dropped from £5,000 to £1,600.

A survey of more than 500 mast site owners found that one-third are now considering getting rid of the protocol altogether, citing a decline in frustration with mobile operators.

The National Farmers Union (NFU) and the Rural Land and Business Association (CLA) warn that members are increasingly inclined to convert land to other uses (from holidays to solar farms) that provide more considerable and more complex sources of income.

“It is worrying that many on-site providers are considering leaving the hosted telecom infrastructure,” said Rachel Hallos, vice president of NFU. “Members don’t feel like the operator or the government’s listening when they speak out about what’s going on on their land.”

Any massive evacuation of landowners from mast contracts would endanger the UK’s digital upgrades, especially within 5G coverage, where risks in rural areas are particularly likely to lag behind Europe.

At the heart of the dispute is the Electronic Communications Act (ECC), which was introduced in 2017 to align mast rental with fees paid for power lines or water pipes by utility companies. The regulation provides operators with EE, Vodafone, O2 and three sweep powers to renegotiate existing contracts, which usually significantly reduce rents.

Critics argue that the policy has not accelerated its promotion, but has worsened the relationship between landowners and operators, triggering legal disputes and slowing deployment. They warned that Labor ministers are now preparing to expand the ECC to cover another 15,000 locations, which could deepen dissatisfaction with the countryside.

Although former shadow digital minister Lucy Powell warned last year that the law could “slow down, not speed up” investments in 5G and all-fiber broadband.

Mast rent ranks among farmers’ widespread opposition to Labor policy. The government has faced criticism for its estate tax reform that reduced relief for family-owned farms and was blamed for record number of farm closures this year.

These changes have made many feel abandoned. The NFU and the CLA believe that mobile mast hosts (including schools, NHS trusts, councils and small businesses) are required to subsidize digital infrastructure at their own expense.

However, mobile operators insist that ECC is crucial to improving coverage. Since 2017, UK industry agency Mobile UK pointed out that more than 33,500 4G and 5G service upgrades have been cited as evidence of effective collaboration.

“The vast majority of agreements are reaching consensus that landowners are actively involved in the rapid expansion of mobile networks in key countries,” the organization said in a statement.

They also highlighted the role of ECC in enabling shared rural networks, an initiative that has increased 4G coverage to 95% of UK property.

The bank also exposed friction between landowners and companies like AP Wireless, which purchased mast rentals and then charged operators for those locations. Private equity-owned AP Wireless warned that ECC undermined its “land aggregation” business model while operators blamed its inflationary costs.

The Ministry of Science, Innovation and Technology defended the reform but acknowledged the tensions remained. A spokesperson said: “Our priority is to continue to provide high-quality 5G networks in the UK, which is crucial to improve growth and improve public services for the people in the UK.”

“We want to ensure that the measures that the country needs to develop the infrastructure needed for landowners, operators and communities are provided, which is why we are now considering the results of the consultations conducted earlier this year.”

The bet is high. The UK has lagged behind many of the European competitors with 5G launches, and the government has fixed its economic growth plans to improve connectivity to increase productivity, innovation and regional development.

But if farmers and other landowners increasingly get rid of the mast agreement, the UK could face delays, make up for coverage and growing rural dissatisfaction – undermining digital strategies and tensions that Labor has already had with rural areas.

Currently, ECC may have provided cheap rents for mobile operators. But the question remains: the long-term cost of Britain becoming a truly linked economy?


Jamie Young

Jamie is a senior journalist in business affairs, bringing more than a decade of experience in the UK SME report. Jamie holds a degree in business administration and regularly attends industry conferences and workshops. When not reporting the latest business developments, Jamie is passionate about coaching emerging journalists and entrepreneurs to inspire the next generation of business leaders.



Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button