The increasing demands on mobile networks means that telecoms companies are constantly looking for new sites for phone masts.
Pubs, because they are often at the hub of a community, may therefore be increasingly targeted as possible sites for mobile phone masts. The rental income offered by letting an area within a pub property, which would otherwise not be used, may be an attractive proposition.
Not so straightforward
However, these agreements are not always as straightforward as they may at first appear and there are a number of points to bear in mind before being tempted by such an offer.
Firstly, you may need consent from your own landlord or mortgagee to alter and let part of your property. Furthermore, you should be aware that the agreement with a telecoms operator is really a lease protected by the Landlord and Tenant Act 1954, making the operator a business tenant with security of tenure. While this point can in fact be easily overcome by following the procedures for exclusion laid down by the 1954 Act, it is important to ensure that you do cover yourself in this way.
Telecommunications Code
Most onerous of all, however, are the effects of paragraphs 20 and 21 of the Telecommunications Code (part of the Telecommunications Act 1984).
These grant an operator with a public telephony licence additional rights to keep its apparatus on the property.
So even if an agreement has come to an end, or has been terminated early, the owner of the premises cannot insist upon immediate removal of the apparatus. They must comply with the code's procedures (including rules for serving notices), which are complicated and must be followed carefully.
Briefly, if the owner wants the apparatus removed, it must serve a notice on the operator. The operator then has 28 days to serve a counter-notice. If this is not forthcoming then the apparatus must be removed. If a counter-notice is served, the matter must be decided in court.
The code lays down criteria to be applied by the court when considering whether apparatus should be removed, but the overriding principle is that no person is to be denied access to the telecommunications system.
The code does apply less strict criteria for owners wanting to remove the apparatus for redevelopment purposes. However, it is generally believed that it will be difficult for landowners to be successful in removing apparatus from their property.
Take legal advice
If you are considering granting an agreement to a telecoms operator it is important that you take early advice to reduce the effects of the code and to obtain the maximum benefit from the agreement. Beware of having an early access agreement while the lease is being negotiated, because the code will apply as soon as this is signed.
It may well be worth instructing specialist agents to negotiate terms with the telecoms operating company on your behalf, as these can vary considerably. Consider also adding the provisions mentioned above to the operator's agreement to give yourself the best possible protection.
There are other considerations relating to the erection of a mast, of course, such as planning issues. Telecoms operators go to extraordinary lengths to avoid problems by reducing the visual impact masts can have. It is not uncommon for them to be disguised as chimney pots, flagpoles and drainpipes.
Gaining planning permission, however, is usually the responsibility of the telecoms operator.
Finally, it may also be prudent for you to consider the impact on your business reputation if you agree to site a mast on their premises.
Health fears are just one issue which might make locals less favourably disposed to their neighbourhood playing host to a mast - and it may be important for you to carry local opinion with you if you go down this route.