The Product Security And Telecommunications Infrastructure Act 2022

• Published date: 23 February 2023
• Subject Matter: Media, Telecoms, IT, Entertainment, Real Estate and Construction, Mobile & Cable Communications, Landlord & Tenant - Leases
• Law Firm: Birketts
• Author: James Robinson

The Product Security and Telecommunications Infrastructure Act 2022 (''the Act'') received royal assent on 6 December 2022. However, many of its provisions will not come into force until further regulations are passed by the Secretary of State.

The Act comprises two parts: (1) Product Security and (2) Telecommunications Infrastructure. Landowners and telecoms operators will be predominantly interested in part 2, as it makes changes to the 2017 Electronic Communications Code (''the Code'') that regulates the relationship between them.

The key changes are summarised below.

Right to upgrade and share apparatus (sections 57 to 59 of the Act)

New Express Code Right

The Act introduces an express Code right under paragraph 3(1) to share apparatus with another operator and enter the land to carry out works associated with the sharing.

The express right is one for the operator who entered the Code agreement to confer (e.g. other operators cannot require they share).

The explanatory notes to the Act make clear that the parties can agree a right to share and upgrade, that goes beyond the automatic right under paragraph 17 of the Code (i.e. a right to share and upgrade subject to no materially adverse impact or any additional burden being imposed on the landowner). Where this is the case, operators must pay additional consideration.

Retrospective Effect

The Act also makes amendments to the transitional provisions to the Code, so that the right to share and upgrade also applies for equipment installed below ground, pursuant to agreements in place under the previous telecommunications code ("subsisting agreements"), or where there is no subsisting agreement but the apparatus was installed before 29 December 2003.

Amendments to the Landlord and Tenant Act 1954 (sections 61 to 65 of the Act)

Aligning Procedure

The Act contains amendments to the Landlord and Tenant Act 1954 (''LTA 1954''), to align the procedures for lease renewals more closely with part 5 of the Code, where the main aim of the renewal is to confer Code rights.

In practice, the open market valuation used for LTA 1954 lease renewals will no longer apply and the ''no scheme'' valuation method used under the Code, which excludes accounting for the operator's use of the land, will be adopted instead. This will mean lower rents will be payable.

The Act also introduces the same rights for compensation where an LTA 1954 lease is renewed, as if it was renewed under part 5 of the Code. Under this provision...