Clarke Willmott

HIGHER EDUCATION INSTITUTIONS FACE HUGE COMPENSATION PAYOUTS FOR TELECOMS DEALS, WARNS CLARKE WILLMOTT

Rushing into arrangements could leave colleges and universities counting the cost, says law firm

Colleges and universities should think twice before allowing telecom companies onto their campuses – or face compensation bills potentially running into hundreds of thousands of pounds.

That‘s the warning from Kary Withers, Senior Associate and property litigation expert at national law firm Clarke Willmott, who acts exclusively for landowners, particularly educational institutions, against telecoms operators.

She said: “With concern growing about where to put phone masts and other telecommunication equipment it is becoming common practice for telecoms companies to target higher education institutions and seek permission to set up on their campuses.

“Unsurprisingly, given the current economic climate, colleges and universities may think that in return for a few thousand pounds a year this arrangement makes commercial sense.

“However, if the landowner, in this case a university or college, decides it wants to redevelop or relocate, and needs to remove the telecoms operator, it may find it impossible to do so or, at best, an extremely expensive exercise.”

Kary Withers explained that telecoms operators can call on protection from the Landlord & Tenant Act 1954, which gives tenants the right to renew their lease and remain on site until the landowner can prove one of a number of grounds, and the Electronic Communications Code, which gives operators the right to apply to court to stay on campus without the landowner‘s consent.

“In either case, it is going to cost the landowner a lot of money to apply to the courts and try to have the telecoms operator removed,” she said. “And, even if successful, the compensation payable to the operator could easily be in the region of £200,000.”

Kary Withers added that while this analysis might paint a gloomy picture, there are ways in which colleges and universities could allow operators onto their campuses and minimise the risks.

She said: “With the availability of alternative sites in decline, educational institutions will be increasingly targeted by telecoms operators and it would be wise for them to take legal advice before rushing into such an agreement because what may look like an easy way to generate extra income could be an expensive mistake.”

ENDS 14th May 2009

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk