T-Mobile and Hutchison 3G (‘3’) – the story continues…

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Following T-Mobile and 3’s announcement late last year regarding their agreement to combine their 3G network in a ground breaking deal, we have seen months of calm with little information regarding the workings of this deal.

It is only now, 6 months on, that the ramifications of this deal are slowly becoming clear. 

Landlords are now receiving letters from their respective tenants requesting consent to assign their existing agreements into the joint names of T-Mobile and 3.  These letters are the first step in the consolidation of the operator’s combined network and quite clearly state that any additional equipment will fall within the equipment rights allowed within the lease, and that as no money is transferring between the operators, landlords will not receive any site share payments.  Most importantly though, the letters also confirm that a landlord’s agreement has legal ramifications.

However, the question that arises is whether a landlord has a right to refuse consent to the assignment without some sort of monetary compensation?  The fact that the operators are specifically requesting consent, instead of undertaking the work and merely notifying them, would suggest that they do.

This could clearly be an opportunity for landlords to protect their future income from both T-Mobile or 3 but care should be taken in negotiating with the operators during this turbulent time in the telecoms world.  The current work being undertaken by the operators aims to reduce costs by sharing existing structures, but will also ultimately involve the termination of many existing agreements.

For further information and assistance regarding this article, please contact Mark Newton, Chris Hicks or Eve Watson on 01858 410200.

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