London’s 5G rollout is being strangled by a failed legal model
London’s position at the bottom of Europe’s 5G performance rankings is the direct result of a failed telecoms access policy that has deterred investment, triggered mass litigation, and paralysed rollout.
The Electronic Communications Code (ECC), reformed in 2017 to cut costs for mobile operators, removed the requirement to pay market rents for infrastructure sites.
Instead, it introduced a “no-scheme” valuation model, similar to rules for compulsory land purchase by utility firms.
The policy slashed rents by up to 90 per cent, costing landowners an estimated £209m a year, and triggered a sharp rise in legal disputes.
5G litigation surge
Between 1984 and 2017, just 33 cases relating to telecoms land reached the tribunal.
Information received through an FOI showed that since the ECC changes came into effect, that number has exploded to over 1,000, including more than 300 in London alone.
Hospitals, schools, and local councils have been among those forced into court battles with telecoms firms.
Hillingdon Hospital, for example, was ordered to repay more than £300,000 to a mobile operator in the middle of the COVID-19 crisis after losing a rent dispute.
Russell Glendinning, managing director at Cell:cm Chartered Surveyors, said that “potential sites are not progressing at the speed required for today’s market”.
He added: “A policy meant to accelerate digital rollout has delivered the opposite. Despite the evidence, the government has announced a consultation on part two of the product security and telecommunications infrastructure act, which would extend this framework even further. Rather than fixing the policy failure, ministers risk entrenching it”.
The new proposals – out for consultation until July – would apply the same failed rent model to 15,000 additional sites, including existing agreements signed under previous rules.
Operators would be able to override contracts, impose retrospective rent cuts, and apply to court to force through new terms.
The Upper Tribunal Telecommunications User Group has already warned that the number of legal disputes could double again under the new rules.
A connectivity crisis in the capital
The impact on connectivity has been particularly severe in London. With ground-level space limited, rooftop sites are crucial to deploying mobile infrastructure across the city.
But as site negotiations collapse and landlords walk away, the rollout has stalled.
“London is lagging behind, not just globally, but even within the UK, in crucial aspects of digital connectivity”, said Mobile UK.
Streetwave data shows only 55 per cent of users in London experience acceptable mobile coverage – well below Ofcom’s reported 88 per cent.
The UK now ranks 30th out of 39 countries for 5G availability and 37th for quality and London, once a global tech leader, has now been named Europe’s worst-performing capital for 5G access.
As Virgin Media 02 prepares to shut down its 3G network nationwide by the end of 2025, the weakness of the current mobile infrastructure are coming into sharp focus.
A pilot switch off in Durham was successful, but London’s lagging connectivity threatens to leave parts of the capital behind.
Without a change in policy, experts warn that a £20-37bn investment gap could stop the UK meeting its 2030 5G goals.
The British Property Federation, NFU, CLA and CAAV have all urged ministers to pause and rethink.
“If we want seamless 5G across the UK – and the productivity and innovation that come with it – we must fix the incentives that support rollout. That means urgent course correction and review of the flawed no-network valuation policy that risks locking in long-term failure”, said Glendinning.