Rural landowners with telecom mast sites should not cave into pressure from operators to change the terms of their leases following the site sharing agreement between O2 and Vodafone, says land consultancy firm Strutt & Parker.

Cornerstone Telecommunications Infrastructure Ltd, the joint venture between O2 and Vodafone which was given the green light by the Office of Fair Trading in September, will be responsible for creating and managing a shared network of cell sites in the UK for the two operators.

The operators will remain in competition with each other but the agreement will allow the two companies access to a combined total of 18,500 base station locations around the UK, which is a 40 per cent increase for both networks. Following the launch of a project called Cornerstone in 2009, some 4,000 sites are already shared by the two companies. The formal creation of the 50/50 owned CTI Ltd, however, will require a formal request of landlords to transfer leases into the name of the new company. In fact, it is understood that some 9,000 sites are to be assigned to the new company by June 2013.

At the same time, landowners across the country are receiving letters asking them to agree to new terms or risk the decommissioning of their site.

The Cornerstone project may demand the installation of additional or replacement antennae and equipment and other terms include rent reviews to market value every five years; the right to share the site freely with third parties and to assign or sublet the lease to third parties without consent; 24/7 access; open break clauses (for tenants only); and substantial rent reductions.

The letters imply that the site may be decommissioned in the future if the landlord does not accept the new terms. However, that is not usually the reality of the situation.

Robert Paul, telecoms specialist for Strutt & Parker, said: "The letters seemingly allow landowners little room for manoeuvre. The terms require careful thought by landowners, who, if approached by operators, are recommended to seek professional advice before entering new agreements or responding, to ensure that their interests are protected."

Mr Paul added: "They must ensure they fully understand their rights under the lease and be fully aware of the risk, if any, of the site actually being decommissioned. They should take specialist advice before signing any paperwork put in front of them by operators which otherwise amounts to a completely voluntary rent reduction. Given their steep target and whilst the operators are seeking something from their landlords, this is an ideal time to push for improved terms or a better rent."

For further advice and information please contact Strutt & Parker's Shrewsbury office on 01743 284204.