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BRIEFING PAPER

Number CBP 7069, 22 February 2019

Mobile coverage in the UK

By Georgina Hutton Carl Baker

Contents: 1. Mobile Coverage in the UK 2. Coverage obligations 3. Building mobile infrastructure 4. What would it take to

achieve universal coverage?

2 Mobile coverage in the UK

Contents Summary 3

1. Mobile Coverage in the UK 4 1.1 What does mobile coverage in the UK look like? 4 1.2 UK Government commitments on mobile coverage 10 1.3 Progress on improving coverage 10

National Infrastructure Commission recommendations 10 Coverage on road and rail routes 11

1.4 Mobile Action Plans: Scotland and Wales 12

2. Coverage obligations 14 2.1 What are coverage obligations? 14 2.2 Previous coverage obligations (2014–2017) 14 2.3 Future coverage obligations: 700 MHz band 15

Proposed coverage obligations for the 700 MHz band 15

3. Building mobile infrastructure 19 3.1 What does it take to build a mobile mast? 19 3.2 Calls for reforms to make building infrastructure easier 20 3.3 Planning 22

Is planning permission required to build a mobile mast? 22 Calls for further planning reform? 25

3.4 Access agreements 26 What is an access agreement? 26 The Electronic Communications Code (ECC) 27 Reforms to the ECC (2017) 27 What impact are the reforms having? 28 What has the Government said? 29

3.5 Emergency Services Network (ESN) 29 3.6 Using churches to host telecoms infrastructure 30

4. What would it take to achieve universal coverage? 32

Contributing Authors: Carl Baker, Mobile coverage statistics

Cover page image copyright: A communication tower by Lex McKee. Licensed under CC BY 2.0 / image cropped

3 Commons Library Briefing, 22 February 2019

Summary Mobile services are now at the heart of how most people stay in touch and go online. Ofcom reported that in 2018, 78% of adults use a smartphone and that smartphones are now the most popular internet-connected device. The National Infrastructure Commission stated in 2016 that mobile connectivity had become a “necessity”.

According to Ofcom’s Connected Nations 2018 report, 65% of the UK landmass has 4G data coverage from all four mobile network operators (MNOs) – EE, Vodafone, Three and O2 – but 9.3% of the UK had no 4G data coverage from any operator. In terms of coverage at individual premises, 77% of premises had indoor 4G coverage from all four MNOs and 92% of premises had indoor voice call coverage from all four operators. Coverage varies in different parts of the country and Section 1 of this paper provides further details and maps showing mobile coverage variation across the UK.

The Government has committed to extend geographic mobile coverage to 95% of the UK by the end of 2022. Since 2016, UK Government policy for improving mobile coverage has focused on coverage obligations for operators and reforms to make it easier to build mobile infrastructure.

Coverage obligations

Coverage obligations are legal requirements on mobile operators to provide a minimum level of mobile coverage across a geographic area or certain number of premises.

Coverage obligations have previously been used as a means of improving coverage and Ofcom is consulting on proposals for new coverage obligations to be imposed on some licences for new airwaves which are expected to be released by 2020, called the 700 megahertz (MHz) band. The release of the 700 MHz spectrum for mobile is a key part of Ofcom and the Government’s proposals to improve rural mobile coverage and meet increasing demands for mobile data. Ofcom’s proposals for the 700 MHz band include an obligation to provide good quality mobile service, including data, outdoors to at least 90% of the UK landmass, with minimum amounts for each nation.

Building mobile infrastructure

Improving mobile coverage in an area requires mobile base stations (masts) to be built. The roll-out of mobile services and infrastructure is led by private operators, who take commercial decisions about where to build masts and deliver services. Once a suitable location for a mast has been identified, operators require an access agreement with the landowner to use the land and may require planning permission or approval from the local authority.

Since 2016 the Government has introduced two main reforms intended to make building masts easier: changes to permitted development rights (in 2016) and reforms to the Electronic Communications Code (in 2017).

The Government has launched a Digital Connectivity Portal that provides resources and advice for local authorities and commercial providers that is intended to facilitate deployment of broadband and mobile networks.

The roll-out of 5G will require even more mobile and full-fibre infrastructure to be built, which is leading to calls for further reform to make building digital infrastructure easier. For more information, see the Library briefing papers on 5G and Full-fibre networks in the UK.

4 Mobile coverage in the UK

1. Mobile Coverage in the UK Mobile services are now at the heart of how most people stay in touch and go online. The National Infrastructure Commission stated in 2016 that mobile connectivity had become a “necessity”.1 Ofcom reported in 2018 that 78% of adults use a smartphone and that smartphones are now the most popular internet-connected device.2 Furthermore, mobile data consumption continues to increase; Ofcom reported that in June 2017 the average monthly mobile data consumption in the UK was 1.9GB per month in June 2017, up from 1.3GB in June 2016 (an increase of 46%).3

Yet, there are still parts of the UK that do not have good quality mobile coverage. There are two issues with mobile coverage in the UK:

• ‘not-spots’ – areas where there is currently no mobile coverage available; and

• ‘partial not-spots’ – areas which have coverage from some but not all of the 4 major mobile networks.

There are four Mobile Network Operators (MNOs) in the UK: EE (owned by BT), O2 (Telefonica), Three (Hutchinson 3G) and Vodafone. There are also a number of Virtual Mobile Network Operators (VMNOs), for example TalkTalk and GiffGaff, who do not have their own network infrastructure but have commercial agreements to use the network of one of the MNOs.

1.1 What does mobile coverage in the UK look like?

Ofcom defines good mobile coverage to be a service where:

• Nearly all 90-second telephone calls complete without interruption; and

• Nearly all 4G connections will deliver a connection speed of at least 2 megabits per second (Mbps).4

Mobile coverage in the following discussion refers to coverage that should meet that standard. Ofcom records areas with mobile coverage indoors and outdoors at specific premises, over geographical areas and on major roads.

1 National Infrastructure Commission, Connected Future, 14 December 2016, page 2

[accessed 13 December 2018] 2 Ofcom, Communications Market Report 2018, 2 August 2018. 3 Ofcom, Communications Market Report 2018, 2 August 2018, page 21. 4 Ofcom has defined technical standards for signal strengths needed to deliver these

standards 95% of the time. Ofcom, Connected Nations 2018, main report page 22

5 Commons Library Briefing, 22 February 2019

According to Ofcom’s Connected Nations 2018 report, 77% of premises have indoor 4G coverage from all four operators, and 92% of premises have indoor voice call coverage from all four operators. However, this varies in different parts of the country. The tables below illustrate this using Ofcom’s data.

Both 4G and voice call coverage are highest in England and lowest in Northern Ireland. Coverage of major roads is highest in England and tends to be lowest in Scotland.

The table below shows estimates for rural and urban areas in the UK, based on constituency data & classifications. Note that Scotland and Northern Ireland have different rural/urban classifications from England and Wales, which is why the categories differ here.

4G coverage in urban constituencies (all operators) varies from 67% in Northern Ireland to 85% in England. For voice call coverage from all operators, urban coverage varies from 88% in Northern Ireland to 98% in England

Looking at the most rural areas – 4G coverage from all operators is 56% in England but 45%-46% in Scotland, Wales and Northern Ireland. Voice call coverage from all operators in the most rural areas ranges from 66% in Scotland and Northern Ireland to 78% in England.

MOBILE COVERAGE BY UK COUNTRY 2018England Scotland Wales N. Ireland

4G data Premises (Indoor) - all operators 78% 75% 69% 57%

Major roads - all operators 70% 46% 53% 61%

Voice Calls Premises (Indoor) - all operators 93% 91% 88% 80%

Major roads - all operators 88% 65% 75% 78%

77% of UK premises have indoor 4G coverage from all operators.

6 Mobile coverage in the UK

MOBILE COVERAGE BY RURAL-URBAN CLASSIFICATION, 2018Calculated based on constituency classifications

No operators All operators No operators All operators

England 0.7% 78% 0.2% 93%

Mostly Rural 3.2% 56% 0.8% 78%

Largely Rural 1.6% 64% 0.4% 85%

Urban with Significant Rural 1.0% 72% 0.2% 90%

Urban Cities and Towns 0.1% 85% 0.0% 98%

Scotland 1.2% 75% 0.5% 91%

Rural 8.0% 45% 3.7% 66%

Mixed Rural & Urban 1.6% 68% 0.6% 85%

Urban 0.3% 80% 0.1% 96%

Wales 1.9% 69% 0.8% 88%

Mostly Rural 6.4% 46% 3.2% 72%

Largely Rural 4.3% 59% 2.0% 81%

Urban with Significant Rural 1.9% 63% 0.6% 85%

Urban Cities and Towns 0.3% 80% 0.0% 95%

Northern Ireland 1.6% 57% 0.5% 80%

Rural 4.3% 45% 1.9% 66%

Mixed Rural & Urban 1.3% 53% 0.1% 80%

Urban 0.2% 67% 0.0% 88%

Voice calls (indoor)4G data (indoor)Nation & Rural Urban Classification

7 Commons Library Briefing, 22 February 2019

The table below shows coverage estimates for English regions and devolved nations (indoor coverage at specific premises and over geographic landmass area). London has the highest 4G and voice call coverage, but it is worth noting that London is the only region without any significant rural area (see the table above). 4G premises coverage and voice calls coverage are both lowest in Northern Ireland. In England, premises coverage is lowest in the South West.

4G geographical coverage is highest in London and lowest in Scotland.

MOBILE COVERAGE: REGIONS & NATIONS, 2018

All operators No operators All operators No operators All operators No operators

East Midlands 74.3% 0.8% 91.4% 0.5% 90.8% 0.1%

East of England 72.0% 1.0% 91.6% 0.0% 88.8% 0.1%

London 95.9% 0.0% 99.6% 0.0% 99.6% 0.0%

North East 79.8% 0.3% 69.5% 8.4% 94.0% 0.1%

North West 78.5% 0.5% 72.0% 5.7% 95.9% 0.1%

Northern Ireland 57.2% 1.6% 79.7% 2.1% 80.1% 0.5%

Scotland 74.8% 1.2% 39.2% 21.8% 91.1% 0.5%

South East 74.0% 0.6% 88.4% 0.4% 92.6% 0.1%

South West 69.9% 2.0% 74.3% 2.2% 88.1% 0.6%

Wales 68.8% 1.9% 56.9% 10.0% 87.9% 0.8%

West Midlands 76.3% 0.8% 79.5% 1.0% 93.4% 0.1%

Yorkshire & Humber 79.2% 0.6% 81.2% 5.1% 93.9% 0.1%

UK 76.8% 0.8% 65.9% 9.3% 92.5% 0.2%

4G data (premises) 4G data (geographical) Voice calls (premises)Region

8 Mobile coverage in the UK

The map below shows 4G indoor premises coverage by constituency in the UK. There are 31 constituencies where more than 98% of premises have 4G indoor coverage from all operators – all of which are in London. There are 41 constituencies where less than half of premises have 4G indoor coverage from all operators. Six are in Northern Ireland, six in Scotland, five in Wales, and 24 in England.

9 Commons Library Briefing, 22 February 2019

The map below shows geographic 4G coverage – i.e. the percentage of land area with coverage from all four operators.

10 Mobile coverage in the UK

1.2 UK Government commitments on mobile coverage

The Government has committed to extend geographic mobile coverage to 95% of the UK by the end of 2022 as well as providing uninterrupted mobile signal on all major roads.5 According to Ofcom’s Connected Nations 2018 report, 91% of UK landmass had 4G data coverage from at least one mobile operator, and 65% of the UK landmass (see the map on page 9) has 4G data coverage from all four mobile network operators ( EE, Vodafone, Three and O2).

The main policy tools used by the Government and Ofcom since 2016 to improve mobile coverage have been:

1 coverage obligations (see Section 2), and

2 reforms intended to make building infrastructure easier (see Section 3).

1.3 Progress on improving coverage National Infrastructure Commission recommendations The National Infrastructure Commission (NIC) has been monitoring the Government’s progress on future digital infrastructure, including mobile (4G and 5G) and full-fibre networks.6 The NIC’s 2016 report Connected Future (December 2016) criticised the UK’s 4G network in terms of coverage in comparison to the rest of the world, ranking the UK as 55th out of 80 countries; as well as highlighting that the UK has been “relatively slow to deploy both 3G and 4G technologies widely” compared to other nations.7 Ofcom welcomed the NIC’s report but also questioned the reliability of the study and resulting ranking of the UK for 4G coverage. The regulator noted that its targets and requirements focus on UK premises receiving a signal, whereas the NIC study looked at coverage across the country (i.e. including while users were in transit).8 Ofcom developed metrics for measuring ‘good mobile coverage’ (see Section 1.1 of this paper) in 2017, in response to one of the recommendations made by the NIC in the 2016 report.9

The Government’s response to the NIC Connected Future report is set out in its March 2017 5G strategy, which was followed by a further

5 DCMS, Future Telecoms Infrastructure Review, 23 July 2018, page 10; DCMS,

Statement of Strategic Priorities for telecommunications, the management of radio spectrum and postal services, 15 February 2019, para 29 [accessed 18 February 2019].

6 See Box 1 in the Library briefing paper on Full-Fibre Networks in the UK for brief information about the NIC.

7 National Infrastructure Commission, Connected Future, 14 December 2016, paras 3.6-3.7 [accessed 13 December 2019].

8 BBC news, UK Government ‘must take action’ on 5G, 14 December 2016 [accessed 13 February 2017]

9 Ofcom, Connected Nations 2017, 15 December 2017, para 3.3. National Infrastructure Commission, Connected Future, 14 December 2016, recommendation 5.

The Government has committed to extend geographic coverage to 95% of the UK by the end of 2022.

11 Commons Library Briefing, 22 February 2019

update published in December 2017.10 The Government’s most recent strategy for digital infrastructure is contained in the Future Telecoms Infrastructure Review, published on 23 July 2018.

In its 2018 National Infrastructure Assessment the NIC stated that while the Government and Ofcom “have made some progress” on improving mobile connectivity, progress on improving road and rail connectivity was “particularly poor”.11

Coverage on road and rail routes The NIC has raised concerns about the UK’s progress on delivering mobile coverage on road and rail routes. In its 2016 Connected Future report the NIC recommended that network infrastructure on major roads and key rail routes should be in place by 2025.12 The Government accepted the NIC’s recommendation and in its March 2017 5G strategy, and included a commitment to:

set out by the end of 2017 what the essential elements of high-quality coverage where people live, work and travel are, and how we will achieve this as soon as practical, but by no later than 2025.13

The December 2017 Update to the 5G Strategy provided more information about Government’s assessment of, and next steps to, improving connectivity on road and rail networks.14 The Government concluded that relying on existing mobile operator coverage is unlikely to deliver sufficient connectivity for train passengers to meet future needs, and that dedicated trackside infrastructure would likely required. Box 1 sets out Government funding, consultations and trials directed towards improving coverage on rail routes. Regarding roads, the Government pointed to funding provided to trial 5G technology on roads (see the Library briefing paper on 5G for more information).15

Box 1: Connectivity on rail networks: the Trans Pennine Initiative

The Government has a policy aim for main line rail routes to have “uninterrupted mobile coverage and guaranteed Wi-Fi”.16 In the Autumn Statement 2017 the Government announced £35 million funding to improve connectivity on trains,17 which was followed by a call for evidence in December 2017.18

10 DCMS, Next Generation Mobile Technologies: A 5G Strategy for the UK, 8 March

2017; and DCMS, Next Generation Mobile Technologies: An Update to the 5G Strategy for the UK, 19 December 2017.

11 National Infrastructure Commission, National Infrastructure Assessment, 10 July 2018, page 27.

12 National Infrastructure Commission, Connected Future, 14 December 2016, page 2. 13 DCMS, Next Generation Mobile Technologies: A 5G Strategy for the UK, 8 March

2017, page 14. 14 DCMS, Next Generation Mobile Technologies: An Update to the 5G Strategy for the

UK, 19 December 2017, page 10-14. 15 DCMS, Next Generation Mobile Technologies: An Update to the 5G Strategy for the

UK, 19 December 2017, page 14 16 DCMS and DfT, Trans Pennine Initiative Trial: Call for Information, August 2018

[accessed 12 February 2019]. 17 HM Treasury, Autumn Statement 2017, 22 November 2017, section 5.19. 18 DCMS and DfT, Commercial options for delivering mobile connectivity on trains: Call

for Evidence, 28 December 2017.

12 Mobile coverage in the UK

Part of that funding has been allocated to a trial initiative on the Trans Pennine rail route between Manchester and York to trial trackside infrastructure.19 The Trans Pennine Initiative initially included three parts: installing full-fibre cables along the route, trailing 5G technology and installing passive infrastructure such as masts to test radio equipment that could provide connectivity to trains (Wi-Fi and/or mobile). In January 2019 the passive radio equipment part of the project was discontinued given concerns about feasibility within the budget and timeframe required to inform future policy development.20

The NIC’s Annual Monitoring Report 2019 described a number of successes that the Government had achieved in improving coverage generally across the UK since 2018, but raised concerns that coverage on road and rail networks had advanced “very little”. As “first steps” the Commission recommended that the Government:

• The government should set out its next steps on mobile connectivity for rail in 2019. This is necessary to establish a preferred model for the deployment of trackside infrastructure, providing clarity for suppliers. This infrastructure will need to be in place on main rail routes by 2025 at the latest, if delivery is to take place on a timescale consistent with the wider deployment of 5G networks.

• The government should develop a plan by the end of 2019 for scaling motorway connectivity beyond the existing trials in order to enable delivery by 2025 at the latest and meet the long term connectivity needs of passengers and connected and autonomous vehicles.21

The Confederation of British Industry (CBI) and the All-Party Parliamentary Group for Rural Business have both called for all major Government infrastructure projects – such as major rail and road developments, to include digital infrastructure considerations in their development plans.22

1.4 Mobile Action Plans: Scotland and Wales The UK Government has primary responsibility for mobile policy and coverage targets because telecommunications is a reserved power, however, the delivery of mobile infrastructure projects often overlaps with devolved powers such as planning (see section 3.3).

The Scottish and Welsh Government have both produced Mobile Action Plans (in 2016 and 2017, respectively) to cover policy levers that the devolved Governments can use to contribute to improving mobile coverage (see below). For example, both plans include proposals such as: reviewing planning regimes, improving access to public assets to install electronic communications infrastructure, considering non-domestic rates relief for mobile masts, identifying opportunities for 19 DCMS, Trans Pennine Initiative Trial: Call for Information, August 2018 [accessed 12

February 2019]. 20 DCMS, Trans Pennine Initiative Trial: Call For Information Update and Notification of

Discontinuation of Radio Infrastructure Delivery, January 2019 [accessed 12 February 2019]

21 National Infrastructure Commission, Government action can ensure UK benefits from world-class infrastructure, 22 February 2019.

22 CBI, Ready, Set Connect, 7 December 2018; All-Party Parliamentary Group for Rural Business, 4G in Rural Areas: How to close the digital divide, October 2018.

13 Commons Library Briefing, 22 February 2019

public intervention and support for building masts (called infill) and encouraging “innovative solutions” and new technology to improve coverage.

• Scottish Government, Mobile connectivity: action plan, 12 June 2016.

• Welsh Government, Mobile Action Plan, 5 October 2018. The Welsh Assembly Economy, Infrastructure and Skills Committee stated in January 2019 that there was more that the Welsh Government could do to encourage mobile investment in Wales.23

23 National Assembly for Wales Economy, Infrastructure and Skills Committee, Mobile

Action Plan Update, January 2019, page 5.

14 Mobile coverage in the UK

2. Coverage obligations

2.1 What are coverage obligations? Coverage obligations are legal requirements on mobile operators to provide a minimum level of mobile coverage across a geographic area or certain number of premises. Coverage obligations usually form a condition of the licence that allows an operator to use a specific band of spectrum to operate its network. The Digital Economy Act 2017 brought in changes such that Ofcom can impose fines for breaches of spectrum licence conditions, which could include coverage obligations along with other conditions.24

Coverage obligations are usually assigned through spectrum auctions and are set by Ofcom following a consultation process (an exception to this was the voluntary coverage obligations taken on by all mobile operators in 2014 – see below). Broadly speaking, when deciding coverage obligations, Ofcom considers the social need for extended coverage alongside the cost to operators to deliver on the obligation.25

Background information about spectrum for mobile services is available the Library briefing paper on 5G (see Section 3, Box 6 of that paper).

2.2 Previous coverage obligations (2014–2017)

In 2014, the UK’s four main mobile network operators (MNOs) – EE, O2, Three and Vodafone – signed a voluntary agreement with the Government to deliver mobile voice services to 90% of the UK landmass by the end of 2017.26 The agreement was legally binding because the operators’ licence conditions were amended such that the agreement could be enforced by Ofcom.27

Additionally, the operator O2 was under an additional legal obligation, as a condition of its licence for the 800 MHz band awarded in the 2013 spectrum auction.28 That obligation required O2 to provide a minimum level of indoor data coverage to 98% premises (with a minimum of 95% in each nation) by the end of 2017.

These obligations allowed operators to choose which specific areas they would provide coverage to in order to meet the obligation.

24 Section 9 of the Digital Economy Act 2017 amends the Wireless Telegraphy Act

2006 to allow Ofcom to impose financial penalties for contravention of the terms of a spectrum licence. The financial penalties should not exceed 10% of relevant gross revenue as defined in s.44 of the Wireless Telegraphy Act 2006.

25 Ofcom, Consultation: Award of the 700 MHz and 3.6-3.8 GHz spectrum bands, 18 December 2018, para 4.55-4.64.

26 DCMS, Government secures landmark deal for UK mobile phone users, 18 December 2014.

27 The obligation applied to licences of the 900MHz and 1800MHz spectrum bands. Ofcom, Voice Coverage Obligation Notice of Compliance Methodology, 30 January 2015.

28 For background information, see the Library briefing paper The UK 4G spectrum auction and mobile coverage, June 2015.

15 Commons Library Briefing, 22 February 2019

Ofcom confirmed in March 2018 that all operators had complied with the coverage obligations in the time required.29

2.3 Future coverage obligations: 700 MHz band

What is the 700 MHz band? The 700 MHz band is a portion of the radio frequency spectrum that has been previously used for Digital TV and other services. Ofcom decided to make the 700 MHz band available for mobile data in November 2014.30 The release of the 700 MHz spectrum for mobile is a key part of Ofcom and the Government’s proposals to improve rural mobile coverage generally and to meet projected increases in demand for mobile data.31

The technical characteristics of the spectrum make it suitable for delivering rural and indoor mobile coverage – it is low frequency spectrum which means it is suitable for traveling long distances and penetrating physical objects. The 700 MHz band is also expected to be used to support wide coverage of future 5G applications (see the Library briefing paper on 5G for information).

Proposed coverage obligations for the 700 MHz band Ofcom has proposed two coverage obligations which would each require the obligated operator, within four years of the grant of licences (i.e. early 2025), to:

1. provide a good quality mobile service32 outdoors in at least 90% of the UK landmass, including at least 90% of England, 90% of Northern Ireland, 74% of Scotland and 83% of Wales;

2. provide good quality service outdoors for at least 140,000 premises to which it currently does not provide good coverage; and

3. deploy at least 500 new wide area mobile sites.33

Ofcom has proposed that the price for winning spectrum with obligations attached would be discounted by up to £300m to £400m to reflect the investment required, and the social benefits they will bring.34

29 Ofcom, Consultation: Award of the 700 MHz and 3.6-3.8 GHz spectrum bands, 18

December 2018. 30 Ofcom, Decision to make the 700 MHz band available for mobile data – statement,

19 November 2014 [accessed 12 February 2019]. 31 Ofcom, Enabling 5G in the UK, 9 March 2018; DCMS, Statement of Strategic

Priorities for telecommunications, the management of radio spectrum and postal services, 15 February 2019, para 30.

32 Ofcom defines a good quality mobile service as providing a high probability of a successful voice calls (95% success rate) and access to a data service with download speeds of least 2 Mbps. See: Ofcom, Consultation: Award of the 700 MHz and 3.6-3.8 GHz spectrum bands, 18 December 2018, para 4.154.

33 Ofcom, Consultation: Award of the 700 MHz and 3.6-3.8 GHz spectrum bands, 18 December 2018.

34 Ofcom, Consultation: Award of the 700 MHz and 3.6-3.8 GHz spectrum bands, 18 December 2018.

The release of the 700 MHz spectrum for mobile is a key part of Ofcom and the Government’s proposals to improve rural mobile coverage generally

16 Mobile coverage in the UK

Operators would have a choice as to how they meet the obligations, for example, which specific areas they choose to cover. For the first two obligations, this could include rural roaming agreements between operators (see Box 2), which would improve the number of operators providing coverage to certain areas but would not address those areas without any coverage at all. The obligation to deploy new masts is intended to target full not spots.

Ofcom states that the coverage obligations proposed would not solve all the UK’s coverage problems and that further intervention will be required particularly for remote premises (see Section 4 of this paper for more information).

The above obligations are the second set of proposals put forward by Ofcom for the 700 MHz band. Ofcom had first suggested three coverage obligations requiring 92% coverage alongside a specific premises obligations, within a three year time frame.35 In response to Ofcom’s first proposals, some rural advocacy groups (such as the Country Land and Business Association, and MPs from the All Party Parliamentary Group for Rural Business) argued that the proposals did not go far enough to deliver the Government’s target to reach 95% mobile coverage by 2022.36 On the other hand, most mobile operators argued that the first proposals went too far and underestimated the number of masts that would be required (and thus the cost and time that would be required to meet the obligations).37 Ofcom considers that a risk of imposing coverage obligations that are too high is that operators may not bid for the spectrum therefore delivering no coverage benefits.38

In December 2018, Mark Bridgeman, Deputy President of the Country Land and Business Association was quoted on telecoms news website ISP Review to have responded positively to Ofcom’s new proposals:

It has long been clear that mobile network operators will not invest sufficiently in improving coverage in rural areas unless they are compelled to do so. Today Ofcom has shown that it is serious about ending the digital divide that has disadvantaged rural businesses and communities for far too long. […]

The new measures also open the way for a rural roaming approach, where mobile network operators can arrange for their customers to switch between networks to help improve coverage. We look forward to hearing from the operators how they can make the best use of this opportunity.39

35 Ofcom, Consultation: Improving mobile coverage - Proposals for coverage

obligations in the award of the 700 MHz spectrum band, 9 March 2018. 36 Country Land and Business Association, Connect the Countryside: 56 MPs call on

Digital Secretary to act on mobile coverage, 14 May 2018; All-Party Parliamentary Group for Rural Business, 4G in Rural Areas: How to close the digital divide, October 2018.

37 Ofcom, Consultation: Award of the 700 MHz and 3.6-3.8 GHz spectrum bands Annex 17, paragraph A17.3, 18 December 2018.

38 Ofcom, Consultation: Award of the 700 MHz and 3.6-3.8 GHz spectrum bands, 18 December 2018, para 4.64.

39 Ofcom Consult on UK Mobile Spectrum Sharing and 5G Auctions UPDATE, Mark Jackson, ISP Review, 18 December 2018.

17 Commons Library Briefing, 22 February 2019

Box 2: Rural roaming

Roaming refers to when a mobile operator allows customers of another operator to ‘roam’ onto (use) their network in areas where the customer’s provider does not have coverage. Rural roaming generally refers to roaming agreements that are confined to specific areas with poor coverage (typically rural areas). Rural roaming arrangements are a means of addressing ‘partial not spots’ – that is, in areas where only one mobile operator provides coverage, customers of other networks could still get signal. Roaming agreements are usually made voluntarily between mobile operators.

Rural roaming has been identified by Ofcom as one of four main options for improving mobile coverage in technical advice provided to the Government in June 2018 (see Section 4 of this paper).40 MPs from the All Party Parliamentary Group on Rural Business,41 the House of Commons Scottish Affairs Committee42 and Welsh Assembly Economy, Infrastructure and Skills Committee43 have all expressed support for the introduction of rural roaming in hard-to-reach areas. Ofcom has identified risks to consumer experience and investment incentives, which it believes can be mitigated to some extent, but states that in the past rural roaming arrangements have been “strongly resisted by most mobile operators on the basis that the case to impose them is unsustainable”.44

In its consultation document on a draft Statement of Strategic Priorities for Ofcom (February 2019) the Government, noting the potential for roaming in rural areas to improve consumer choice and address partial not-spots, said that Ofcom “should fully consider the costs and benefits of achieving this outcome” including maintaining the option of requiring roaming when granting spectrum rights of use.45 Ofcom’s consultation on the 700 MHz auction states that it does not rule out “the possibility of looking to impose roaming conditions, as appropriate, in 700 MHz licences in the future.“46

When will the 700 MHz band be available for mobile? Ofcom expects to auction mobile licences for the 700 MHz band “by spring 2020” and the spectrum is expected to be available for use by May/June 2020.47 The auction of the 700 MHz band will be a joint auction with spectrum in the 3.6–3.8 GHz band also being auctioned at the same time (see the Library briefing paper on 5G for more information about the 3.6–3.8 GHz spectrum band).

40 Ofcom, Advice to Government: Further options for improving mobile coverage, 14

September 2018. 41 All-Party Parliamentary Group for Rural Business, 4G in Rural Areas: How to close the

digital divide, October 2018, page 8 [accessed 12 February 2019]. 42 House of Commons Scottish Affairs Committee, Digital connectivity in Scotland, 5th

report of session, HC 654, 23 July 2018, para 101-109. 43 National Assembly for Wales Economy, Infrastructure and Skills Committee, Mobile

Action Plan Update, January 2019, page 22. 44 Ofcom, Advice to Government: Further options for improving mobile coverage, 14

September 2018, para 1.35. 45 DCMS, Statement of Strategic Priorities for telecommunications, the management of

radio spectrum and postal services, 15 February 2019, para 31 [accessed 18 February 2019]. Sections 2A-2C of the Communications Act 2003 (as amended) contains powers, (introduced through the Digital Economy Act 2017) for the Government to make a Statement of Strategic Priorities (SSP) to which Ofcom must have regard when carrying out its functions. This will be the Government’s first SSP to Ofcom.

46 Ofcom, Consultation: Award of the 700 MHz and 3.6-3.8 GHz spectrum bands, 18 December 2018, para 10.22-10.23. More detailed reasoning regarding Ofcom’s decision not to include a rural roaming requirement as part of the auction is contained in Ofcom’s supporting information to the consultation: Annex 17, paras A17.18-A17.28.

47 Ofcom, Consultation: Award of the 700 MHz and 3.6-3.8 GHz spectrum bands, 18 December 2018.

Ofcom expects to auction the 700 MHz band by spring 2020.

18 Mobile coverage in the UK

The 700 MHz band has been previously used, and in some parts of the country is still used, for Digital Terrestrial Television (DTT) and wireless communication for theatrical, musical and sporting events (referred to as audio Programme Making and Special Events or PMSE services). To make the band available for mobile broadband, these services are being moved to other frequencies – this is known as ‘700 MHz clearance’. This is a national programme that requires Digital TV users to retune their aerials. The clearance is being conducted in stages; it started in parts of Scotland in 2017 and is scheduled to finish across the UK in April 2020.48 Further details regarding the timetable can be found on Digital UK’s webpage on 700 MHz clearance.

48 Ofcom, 700 MHz clearance programme timescale review, 13 December 2018

[accessed 12 February 2019].

19 Commons Library Briefing, 22 February 2019

3. Building mobile infrastructure

3.1 What does it take to build a mobile mast?

Improving mobile coverage in an area requires more mobile base stations to be built. For wide area coverage, this is usually by mobile masts (macro cells) – see Box 3.

The roll-out of mobile services and infrastructure is led by private operators who take commercial decisions about where to build masts and deliver services. Mobile infrastructure in the UK is largely managed by two network sharing companies, which are each a joint venture between two MNOs: one between Vodafone and O2 and the other between EE and Three.50 Each MNO uses different frequency spectrum to deliver services, but the masts and physical infrastructure are shared between those two joint ventures. There are also wholesale infrastructure providers, for example, Arqiva and Wireless Infrastructure Group that build and lease access to infrastructure.

Some considerations that go into finding a suitable location for a mobile mast are set out in a blog post from infrastructure provider Arqiva. For example, masts must be in a location where it can provide coverage to a reasonable area, the land area must be large enough to support a mast and have access to a power supply and high capacity fibre broadband or radio link to connect the mast to the main network (backhaul). In some urban areas, finding a clear area of land to support a mast can be challenging; in rural areas, access to power and a

49 GMSA, Improving wireless connectivity through small cell deployment (pdf)

December 2016. 50 Cornerstone Telecommunications Infrastructure Limited (CTIL) is a joint venture

between Telefonica (O2) and Vodafone. Mobile Broadband Network Limited (MBNL) is a joint venture between Three and EE (BT).

Box 3: Mobile infrastructure explainer

Base stations: mobile base stations contain radio communications equipment that sends and receives mobile voice/data signals over an area surrounding the station and connects them to a mobile operator’s network. Mobile masts, macro cells and small cells are all types of base stations. Mobile base stations require access to power and a backhaul connection.

Macro cell: a mobile base station that provides wide-area coverage for a mobile network. The antennas for macro cells can be mounted on ground-based masts, rooftops or other existing structures.

Small cell: a low-powered base station that provides coverage over a smaller area than macro cells. Small cells are used to boost mobile network capacity and coverage in localised areas e.g. dense urban areas where there are large numbers of users. They are smaller and lighter than macro cells so can be mounted in more places.49 Small cells are already used for 4G networks in some busy areas and will be important for future 5G networks.

Backhaul: the link that connects a mobile base station to the core internet and phone network. Backhaul is usually provided by full-fibre broadband cables or fixed-radio links.

The roll-out of mobile services infrastructure is led by private operators who take commercial decisions about where to build masts.

20 Mobile coverage in the UK

connection to the main network can be difficult and expensive.51 Further, low population densities in rural areas can diminish the commercial returns that operators receive from extending their network, which makes the business case for investment in infrastructure more challenging for rural areas.52

Once a suitable location has been found, operators will require an access agreement (such as a lease or a wayleave) with the landowner to use the land (see Section 3.3) and may require planning permission or approval from the local authority (see Section 3.2).

Mobile UK (the trade body for mobile operators in the UK) highlight that building mobile infrastructure relies on partnerships between industry, landlords, local Government, central Government and regulators.53

3.2 Calls for reforms to make building infrastructure easier

Since the Government’s Mobile Infrastructure Project concluded in 2016 having faced significant challenges (see Box 4), the Government has focused on reforms intended to make building digital infrastructure easier and cheaper for commercial operators through reform of rules relating to planning permissions (in 2016) and access agreements (in 2017) – each is discussed in more detail below.

Mobile operators argue that despite these reforms they still face challenges to the deployment of mobile infrastructure – both to improve 4G mobile coverage and the roll-out of new 5G networks.54 55 The Mobile UK campaign Building Mobile Britain makes the following calls for further reform:

• Mobile infrastructure to be included in all local development plans

• Consistency of mobile planning across local authorities

• Appointment of local authority digital champions

• Promote mobile-friendly construction, including through the government’s Building Regulations Review

• Include mobile in the permitted development rights regime

51 Mobile UK, Code of Best Practice for Mobile Network Development in England

(November 2016). 52 For more information, see Ofcom’s analysis of factors that affect the level of 3G and

4G mobile coverage available to consumers in different areas: Ofcom, Economic Geography 2018, 18 December 2018.

53 Mobile UK, Councils and Connectivity: how local government can help build mobile Britain, September 2018.

54 See Library briefing paper on 5G (CBP7883) for more information about building 5G infrastructure.

55 Mobile UK, Future Telecoms Infrastructure Review is a positive step but it is deadlines that will achieve its goals, 23 July 2018; New Digital Secretary must continue to bust barriers to assist mobile industry to deliver world-leading mobile connectivity, 10 July 2018. [Accessed 11 February 2019]

To build a mast, operators require an access agreement and may require planning permission or approvals from the local authority.

21 Commons Library Briefing, 22 February 2019

• Provide business rates relief for mobile infrastructure, as it is with fixed broadband.56

In the FTIR the Government reiterated its support for facilitating the roll-out of mobile infrastructure. In 2018 DCMS established a “Barrier Busting Task Force”, which is a cross-Government group working to address “barriers” to digital infrastructure deployment.57 The FTIR stated that industry stakeholders had asked the Barrier Busting Task Force to prioritise the following five areas to reduce employment barriers:

• Ensuring the ECC [Electronic Communications Code] reforms achieve their intended effect;

• Considering further planning reforms to support macro site expansion and small cell deployment;

• Improving access to public sites and exploring ways to reduce costs;

• Facilitating access to power supplies; and

• Local solutions to address deployment barriers.58

Regarding local solutions to address deployment barriers and access to public assets, the Barrier Busting Task Force has developed a Digital Connectivity Portal that provides resources and advice for local authorities and commercial providers that is intended to facilitate deployment of broadband and mobile networks. The Portal provides practical guidance on topics such as digital infrastructure strategy and leadership, legislation and regulation, local planning policies and access to public sector assets. The Portal has been welcomed by Mobile UK.59

56 Mobile UK, What is Building Mobile Britain, accessed 15 January 2018. 57 There is no webpage dedicated to the Barrier Busting Task Force. The FTIR (July

2018) provided a summary of the work of the Task Force at pages 5-6. 58 DCMS, Future Telecoms Infrastructure Review, 23 July 2018, para 194. 59 Mobile UK, DCMS launches new Digital Connectivity Portal for local authorities and

communications network providers, 3 January 2019, [accessed 8 February 2019].

The Government’s Digital Connectivity Portal is a helpful resource for information about building digital infrastructure.

22 Mobile coverage in the UK

Box 4: Mobile Infrastructure Project (concluded 2016)

The Government’s Mobile Infrastructure Project (MIP) was announced in 2011 with the aim to extend mobile phone coverage to ‘mobile not-spots’ – areas where there was no coverage available from any Mobile Network Operator. The Government provided capital funding to Arqiva – a communications infrastructure company – to build new mast infrastructure from which the mobile network operators (EE, O2, Three and Vodafone) provided coverage and funded the operating costs for the 20-year life of the project.60 The Government intended to invest up to £150 million and provide 575 new masts. However, the project faced challenges, delivering 75 masts by the time the project closed in March 2016, at a cost to the Government of £36 million (as of July 2017).61 The House of Commons DCMS Committee, in its 2016 report on Establishing world-class connectivity throughout the UK inquiry, described the challenges faced by the project as follows:

The reasons cited include a long delay in getting State Aid clearance, planning problems, lack of access to power and backhaul connections in rural areas, difficulties in locating suitable sites, and probably most of all the fact that the State Aid rules had stipulated that all four MNOs had to be connected to all MIP masts. In addition, network operators are left in a position of having to cover all the higher ongoing operating costs associated with running and maintaining remote masts where they might never see a return on their investment.62

3.3 Planning Is planning permission required to build a mobile mast? The installation of a mobile phone mast would normally count as a development and would therefore normally require planning permission. However, designated mobile network operators,63 like other operators of utilities, have certain permitted development rights, which means that they can build prescribed infrastructure without having to apply for planning permission (see below). Permitted development rights derive from a general planning permission granted by Parliament, rather than from permission granted by the local planning authority.64

A full application for planning permission would normally be required for any mast that does not meet the permitted development criteria. Any full application for planning permission would require a public consultation before being decided. In England, the National Planning Policy Framework states that planning policies should support the expansion of electronic communications networks (see Box 5).65

Interested parties with concerns about the development of mobile masts and related rights should approach their local planning authority.

60 DCMS, Mobile reception around UK to get massive boost, 30 July 2013 [accessed 27

December 2018]. 61 DCMS, Mobile Infrastructure Impact and Benefits Report, July 2017. 62 DCMS, Establishing world-class connectivity throughout the UK, 2nd report of

session, HC147, 19 July 2018, para 50. 63 The rights only apply to network operators licenced under the Electronic

Communications Code (see Section 3.3 below). 64 For background information, see the Library briefing paper on Permitted

Development Rights, SN 00485 14 June 2017. 65 MHCLG, National Planning Policy Framework, 18 July 2018, paragraph 112.

Mobile masts require planning permission from the local authority, unless the mast falls within the criteria for a permitted development.

23 Commons Library Briefing, 22 February 2019

Box 5: National Planning Policy Framework (NPPF) in England

The National Planning Policy Framework (revised July 2018) sets out expectations for local development plans in England regarding electronic communications (in Section 10) including that planning policies should support the expansion of electronic communications networks and set out how high quality digital infrastructure is expected to be delivered:

Planning policies and decisions should support the expansion of electronic communications networks, including next generation mobile technology (such as 5G) and full fibre broadband connections. Policies should set out how high quality digital infrastructure, providing access to services from a range of providers, is expected to be delivered and upgraded over time…66

Applications for planning permissions must be determined in accordance with the local development plan and the NPPF is a material consideration in planning decisions.

The Government’s Digital Connectivity Portal: considerations for the local planning authority provides information about how local plans can support digital infrastructure deployment.

Permitted development rights in England Permitted development rights for electronic communications infrastructure in England are set out in the Town and Country Planning (General Permitted Development) (England) (Amendment) (No 2) Order 2016.67 The 2016 Order amended the 2015 Town and Country Planning Order (which sets out all permitted development rights in England) and brought in changes to increase the height of masts allowed under permitted development (see below).68 The rights only apply to network operators licenced under the Electronic Communications Code (see Section 3.4 below).

Prior approval from the local planning authority regarding the siting and appearance of the development is required in certain circumstances, for example, all new masts require prior approval. The prior approval process is much less restrictive than a full planning application; the local authority can only consider the siting and appearance of the development and cannot consider the principle of the development itself.

A written statement in March 2016 broadly explains the permitted development rules as amended in 2016:

Where a site is already used for telecommunications infrastructure, we will extend permitted development rights to allow taller ground based masts to be built. The threshold for new ground based masts will increase from 15 metres to 25 metres in non-protected areas and a new permitted development right allowing new masts of up to 20 metres will be introduced in protected areas. To ensure that there is appropriate community engagement a prior approval will apply where a new mast is being built, meaning consideration will always be given to how to minimise the visual impact of masts.

Operators will also be able to increase the height of existing masts to 20 metres in both non-protected and protected areas without

66 MHCLG, National Planning Policy Framework, July 2018, paragraph 112. 67 Town and Country Planning (General Permitted Development) (England)

(Amendment) (No 2) Order 2016 SI 2016/1040. 68 The Town and Country Planning (General Permitted Development) (England) Order

2015 SI 2015/596.

24 Mobile coverage in the UK

prior approval; between 20 metres and 25 metres in non-protected areas with a prior approval; and have a new automatic right to upgrade the infrastructure on their masts in protected areas to align with existing rights in non-protected areas. There will be a height restriction of 20 metres on highways and residential areas to accommodate vehicle lines of sight and pedestrian access.

In addition, we will lift restrictions on the number of antennae allowed on structures above 30 metres, while removing the prior approval requirement for individual antenna greater than 6 metres in height in non-protected areas and for 2 small cell antenna on residential premises in both non-protected and protected areas as the visual impact is limited.

We will also grant rights so small cell antenna on residential and commercial premises can face highways, and increase from 6 to 18 months the right for operators to be able to install emergency moveable transmission equipment.69

Unprotected land means land which is not a “site of special scientific interest” or land defined in Article 2(3) of the Town and Country Planning (General Permitted Development) (England) Order 2015, which includes conservation areas, areas of outstanding natural beauty, national parks and world heritage sites (amongst others).

For more information, see the UK Government’s planning practice guidance on permitted development.

Guidelines for the siting and appearance of mobile infrastructure are provided in the Code of Best Practice on Mobile Network Development in England (24 November 2016). The Code was agreed by a working group consisting of representatives from the mobile industry, UK Government, local Government and other bodies.

Devolved Administrations As planning is a devolved policy area, different permitted development regulations apply in each nation. For general information about permitted development in each UK nation see section 8 of the joint Library briefing paper: Comparison of the planning systems in the four UK countries: 2016 update.

In Wales reforms similar to those described above for England will come into force in April 2019; this followed a consultation held in 2018.70

In Scotland: permitted development rules were reformed in 2017; a summary is provided on the Scottish Government website.71

Northern Ireland: a consultation on reforming permitted development rules was held in 2016 but no changes have since been made; the 2015 permitted developent Order sets out the existing rules.72

69 HCWS631, 17 March 2016 [Boosting Mobile Connectivity: Written statement] 70 The Town and Country Planning (General Permitted Development) (Amendment)

(Wales) Order 2019; Welsh Government, Consultation Document WG33507, Subordinate Legislation Consolidation and Review, 31 May 2018.

71 Scottish Government, Permitted development rights: class 67 changes, 12 June 2017.

72 The Planning (General Permitted Development) Order (Northern Ireland) 2015

25 Commons Library Briefing, 22 February 2019

Additional requirements for consultation with local authorities (UK-wide) Operators must also comply with the Electronic Communications Code (Conditions and Restrictions) Regulations 2003,(SI 2003/2553, as amended),73 which apply UK-wide. The regulations require operators to consult and cooperate with the local highways and planning authorities in certain circumstances. For example, operators are required to give notice to planning authorities in areas where they have not previously installed infrastructure (with some exceptions), and planning authorities can set reasonable requirements that it wishes the operator to comply with. The Regulations also include specific conditions relating to the installation of infrastructure in protected areas.74

Calls for further planning reform? Mobile network operators have called for further reforms to the planning regime, especially to prepare for the roll out of 5G infrastructure, which faces some new and different infrastructure challenges, such as a greater density of base station sites (see the Library briefing paper on 5G for more information about 5G infrastructure challenges).75

On the other hand, MPs from the All Party Parliamentary Group for Rural Business have argued that “operators are happy to use the planning system as an excuse for why coverage is poor” and have called for greater transparency from operators regarding their roll-out plans to allow greater consultation and engagement with communities.76

In the FTIR the Government did not commit to any specific further reforms to the planning framework, but indicated it was in listening mode if industry should demonstrate a clear case for change:

194. […] The Government has created the Barrier Busting Task Force to work with both the fixed and mobile telecoms industry to identify barriers to network deployment. Industry has asked us to prioritise a number of actions to reduce deployment barriers:

• Ensuring the ECC reforms achieve their intended effect;

• Considering further planning reforms to support macro site expansion and small cell deployment;

• Improving access to public sites and exploring ways to reduce costs;

• Facilitating access to power supplies; and

• Local solutions to address deployment barriers.

[…]

196. The Government recognises the need to keep planning regulation under review and to listen to suggestions from industry

73 Amending legislation includes: SI 2013/1403, SI 2016/1049 and SI 2017/753. 74 Regulations 6-8, Electronic Communications Code (Conditions and Restrictions)

Regulations 2003 (as amended); see amending legislation: SI 2016/1049, SI 2013/1403 and SI 2009/584.

75 Mobile UK, What is Building Mobile Britain [accessed 15 January 2018]. 76 All-Party Parliamentary Group for Rural Business, 4G in Rural Areas: How to close the

digital divide, October 2018.

26 Mobile coverage in the UK

for how new technology is best supported in the planning regime. Therefore the Government will continue to work with the sector to promote understanding and take-up of the wide range of planning reforms brought forward and reflect on them to understand where the current planning regime could further support the deployment of digital infrastructure. If the telecoms industry can demonstrate that there are further reforms that could support deployment which warrant changes to planning, and make a clear case for change, we will work swiftly to consider the proposals and consult more widely on appropriate reforms. Our ambition, subject to the Parliamentary timetable, is to deliver any reforms as rapidly as possible.77

Mobile operators have welcomed the Government’s ambitions in the FTIR but called for greater urgency in terms of specific actions for reform.78

3.4 Access agreements What is an access agreement? A mobile operator wishing to build a mast on public or private land will require an agreement with the landowner to use the land. Access agreements are private legal agreements, the specific terms are negotiated between the parties and may differ in each case. Access agreements may take different forms, the most common forms for digital infrastructure are wayleaves and leases.

A wayleave is a contractual agreement whereby a landowner grants a communications provider a licence to, for example, install, access and maintain equipment on their land in return for a rental payment. Wayleaves are usually open ended and rent is usually paid annually or as a one-off payment.79 A lease confers occupational rights to a specific area of land or a building and is usually for a fixed period of time with periodic rental payments. Wayleaves are often used for fixed-line broadband infrastructure while leases are usually used for mobile masts. More information is provided on the Government’s Digital Connectivity Portal: Guidance on access agreements.80

Access agreements are usually entered into consensually between the parties. If a consensual agreement cannot be reached however, a party may apply to the court to impose an agreement under the Electronic Communications Code (see below).

A separate regime applies for building electronic communications infrastructure build on public roads – see Section 3.1 of the Library briefing paper on Full-fibre networks in the UK for more information.

77 DCMS, Future Telecoms Infrastructure Review, 23 July 2018, para 194 and 196. 78 Mobile UK, Future Telecoms Infrastructure Review is a positive step but it is

deadlines that will achieve its goals, Gareth Elliot, July 2018. 79 DCMS, Guidance on access agreements, 20 December 2018, accessed 9 January

2018. 80 DCMS, Guidance on access agreements, 20 December 2018, accessed 9 January

2018.

A mobile operator building a mast on public and private land will require an access agreement with the landowner to use the land.

27 Commons Library Briefing, 22 February 2019

The Electronic Communications Code (ECC) The Electronic Communications Code (ECC) is the main law that governs the rights of telecoms companies to install infrastructure on private and public land; it applies UK wide. It was first introduced in 1984 to regulate landline telephone provision. It is now contained in Schedule 3A to the Communications Act 2003 (as amended).

The Electronic Communications Code (ECC) provides designated network operators with rights, called “code rights”, to install, operate, maintain and upgrade electronic communications infrastructure (such as mobile masts or fibre broadband cables) on private and public land. Code rights in respect of land may only be conferred on an operator by a written agreement between the occupier of the land and the operator81 – e.g. a wayleave or a lease as described above. If such an agreement cannot be agreed consensually, either party can apply to the Court to impose an agreement. The powers of the Court to impose an agreement are set out in Part 4 of the ECC.

Following reforms to the ECC 2017 (see below) subsequent owners or purchasers of the land remain bound to code rights previously agreed regardless of the form of code agreement (e.g. wayleave or lease).82

The ECC only applies to operators that have been granted Code Powers (called Code Operators) by Ofcom, following a public consultation.83 Ofcom publishes a Register of operators with powers under the ECC which can be consulted for specific companies.

Ofcom has published a Code of Practice that is intended to provide a framework for what operators and landowners should expect from each other when negotiating agreements. In addition, Ofcom has also published examples of standard terms that might be included in an agreement and template notices for site operators and providers to use.84

Reforms to the ECC (2017) A new Electronic Communications Code came into force on 29 December 2017, brought in through the Digital Economy Act 2017.85 The 2017 reforms follow several years of consultation and review, including several previous unsuccessful attempts at reform.86

The new ECC is a redrafting of the old ECC and contains many of the same provisions. Significant changes in the new ECC include changes to land valuation for imposed agreements (see below), as well as reforms that make it easier for telecoms companies to upgrade existing

81 Communications Act 2003 (as amended) Schedule 3A: Electronic Communications

Code, Part 2, paragraphs 9 and 11. 82 DCMS, Guidance on access agreements, 20 December 2018, accessed 9 January

2018 83 Ofcom, Register of persons with powers under the Electronic Communications

Code, 11 May 2018, accessed 31 August 2018. 84 Ofcom, Electronic Communications Code, 11 May 2018, accessed 9 January 2018. 85 For background information, see the Library briefing paper on the Digital Economy

Bill (CBP 7699, 9 September 2016). 86 For background information, see the Library briefing paper: Reforming the Electronic

Communications Code,CBP-7203, 1 June 2016.

28 Mobile coverage in the UK

infrastructure and changes to dispute resolution procedures. More detailed information about the reforms to the ECC is provided in a briefing note from law firm Eversheds Sutherland: the New Electronic Communications Code (9 January 2018).

Land valuation

One significant change is that the new ECC changes the way that rent for hosting telecoms equipment on private land is calculated when the court is imposing an agreement. The new ECC uses a system based on compulsory purchase principles (“no-scheme valuation”) as is used for other utilities such as electricity. Rent is now calculated based on the value of the land to the landowner, rather than to the operator. While most agreements should be consensual between operators and landowners, rather than ones imposed by the court, this change in valuation should strengthen the negotiating position of operators and thus lead to reduced rents even in consensual agreements. The Government’s 2016 impact assessment for the reformed ECC stated it expected the reforms to reduce wayleave rents by 40% with landowners’ rents falling by £709 million over a 20 year period.87

The proposal for no-scheme valuation was initially suggested by the Law Commission when it reviewed the ECC in 2013, but after a consultation it proposed only minor changes to the valuation regime just to prevent excessive “ransom rents”.88 The Government decided to go ahead with the “no-scheme” valuation in the reformed ECC, stating that while landowners should receive fair payment for the use of their land, this should not include a share of the economic value created by the demand for services provided by network operators.89

For more information and commentary, see the Library briefing papers on the Digital Economy Bill (CBP 7699, 9 September 2016) and Reforming the Electronic Communications Code (CBP-7203, 1 June 2016).

What impact are the reforms having? Several commentators have pointed towards problems in negotiating agreements under the new ECC. Farmers Guardian and ISP Review reported that some telecommunications companies were dramatically reducing the rents that they were offering to pay landowners. It was reported that some reductions in rent offered are much greater than anticipated or intended by the reformed EEC.90

87 DCMS, Government publishes proposals for a new Electronic Communications Code

– Regulatory Impact Assessment, 17 May 2016. 88 The Law Commission, ‘The Electronic Communications Code’, 27 February 2013. 89 DCMS, ‘A New Electronic Communications Code’, May 2016, pp 14-15. 90 Digital Minister: Farmers being ripped off by telecoms providers an ‘outrage’, Abi

Kay, Farmers Guardian, 4 October 2018, accessed 17 December 2018. Telecoms Disputes Over Wayleaves, Rents Threaten to Become Toxic, Mark Jackson, ISP Review, 17 December 2018, accessed 17 December 2018.

The new ECC changes the way rents are calculated, which makes it cheaper for mobile operators to rent land to host masts.

29 Commons Library Briefing, 22 February 2019

The Broadband Stakeholder Group91 and think tank Centre for Cities92 have both commented that one consequence of the reduced rents is that landowners are now less willing to engage with operators, resulting in a ‘freeze’ or ‘temporary pause’ on the market while landowners adjust to the new provisions. While network operators argue that this is hampering the effectiveness of the new ECC and delaying infrastructure build,93 the British Property Federation argue that some of the reforms have given landlords “a complete lack of control over their building” and pointed to a “hostile environment between landlords and operators”.94

What has the Government said? While accepting that there might be initial “uncertainties” and/or “difficulties” in negotiating new agreements under the reformed ECC, in its July 2018 Future Telecoms Infrastructure Review the Government stated that it believes the ECC reforms provide an “effective regulatory framework to support infrastructure deployment” and stated it would “consider” undertaking a formal review of the ECC in 2019.95

In August 2018, Mobile UK (the trade body for mobile operators), the Country Land and Business Association, the Royal Institution of Chartered Surveyors and the Government signed a Joint Statement on the reformed ECC.96 The Statement recognised “problems with negotiations progressing” with the parties coming together to “reaffirm the commitments” made to the reformed ECC and to Ofcom’s Code of Practice.

The Centre for Cities suggests that the full implementation of the ECC may await the first legal challenges between network operators and landowners to be heard by the courts.97

3.5 Emergency Services Network (ESN) Mobile operator EE has an ambition to serve 95% of the UK with 4G mobile coverage by 2020, as part of its contract to build the Home Office’s Emergency Services Network (ESN).98 The ESN will move all emergency services communications across to a 4G network. The

91 Lowing the Barriers to 5G Deployment, Report by Analyst Masons for the Broadband

Stakeholder Group, Dr Matt Yardley, Janette Stewart, Ian Adkins, Dr Robert Woolfson, 20 July 2018.

92 Centre for Cities, Delivering change How cities can make the most of digital connections, Simon Jeffrey and Lahari Ramuni, July 2018.

93 Mobile UK, Future Telecoms Infrastructure Review is a positive step but it is deadlines that will achieve its goals, Gareth Elliot, July 2018.

94 British Property Federation, BPF views on the progress of the Electronic Communications Code, Raja Hanna, 13 June 2018.

95 DCMS, Future Telecoms Infrastructure Review, 23 July 2018, para 195. 96 DCMS, MobileUK, Country Land and Business Association, Royal Institution of

Chartered Surveyors, Joint Statement on the reformed Electronic Communications Code, 22 August 2018.

97 Centre for Cities, Delivering change How cities can make the most of digital connections, Simon Jeffrey and Lahari Ramuni, July 2018

98 Home Office, Emergency Services Network: overview, 30 November 2018.

The Government has stated it would “consider” undertaking a formal review of the ECC in 2019

30 Mobile coverage in the UK

project is the first of its kind in the world but has faced increasing delays.99

The masts that are built as part of the ESN are expected to improve rural mobile coverage. EE is required to provide other mobile network operators access to masts that are built using public funding under the ESN project and from which EE delivers a commercial service. EE is expected to deliver 291 new masts that will transfer to the Home Office as part of the ESN programme.100

There is a separate group of approximately 300 masts called the “Extend Area Service” (EAS) which are delivered by the Government. These EAS masts are expected to be available to support multiple commercial mobile operators “where practicable”.101

The Scottish Affairs Committee, in their July 2017 report on Digital Connectivity in Scotland, highlighted that the ESN presented an opportunity to improve rural coverage but expressed concern that there had been low uptake from operators to share ESN masts, and encouraged Ofcom to monitor the uptake of sharing agreements:

The ESN network presents an invaluable opportunity for operators to improve coverage in rural areas, and has the potential to create competition in areas which have been poorly served previously. To achieve this, EE need to ensure they facilitate and encourage site-sharing in their building plans. We are concerned that there has been such little interest from other operators in sharing the sites so far. Ofcom should carefully monitor provider take-up of ESN site-sharing, and require EE to provide an update in early 2019. If take-up is still low, Ofcom should consider intervening to regulate the wholesale access price for ESN mast sites.102

3.6 Using churches to host telecoms infrastructure

In February 2018 Government and the Church of England signed an Accord to encourage the use of church spires to host telecoms equipment.103 The Accord covers all digital communications infrastructure, including broadband, mobile and WiFi services.

The short Accord (3 pages) sets out that the purpose of the document is to encourage churches to consider installation of broadband and mobile infrastructure, but stresses that each Church entity should take its own steps and decisions – there is no programme to encompass all churches as such, and no specific funding is allocated.

A PQ from March 2018 explained the intention of the Accord and stated that the Church of England is in the process of setting up a

99 National Audit Office, Upgrading emergency service communications: the

Emergency Services Network, 15 September 2016; Public Accounts Committee, Emergency Services Network: progress review inquiry, open inquiry.

100 PQ 4309, 8 September 2017 [Emergency Services: Mobile Radios]. 101 PQ 4309, 8 September 2017 [Emergency Services: Mobile Radios]. 102 House of Commons Scottish Affairs Committee, Digital Connectivity in Scotland, 5th

report of session, HC 654, 23 July 2018, para 100. 103 DCMS, Defra, Church spires to boost digital connectivity in rural areas, 18 February

2018.

31 Commons Library Briefing, 22 February 2019

working group with interested dioceses and that companies are being invited to tender to provide connectivity under a framework agreement with rural parish churches:

The Church of England recently signed an Accord with Her Majesty’s Government to enable churches to improve broadband and mobile connectivity, particularly in rural areas. The Accord sets out how the Government and the Church can collaborate to help achieve this. Specifically, companies are being invited to tender to provide connectivity under a framework agreement with rural parish churches. The intention of the Accord is to indicate to Church Chancellors, Diocesan Advisory Committees and Local Planning Departments that there is no institutional barrier to this technology being used to promote connectivity in a manner appropriate for the community.

[…]

The Church of England is in the process setting up a working group with interested dioceses to identify areas where further work or guidance may be required to support the Accord. Discussions are also ongoing with the Department for Digital, Culture, Media and Sport to establish where the barriers are to progress this project further.104

The Church of England and Historic England have both published guidance regarding the installation of telecommunications equipment in church buildings which should be reviewed by interested dioceses. The Historic England guidance focuses on the impact on the buildings whereas the Church of England guidance also covers the process of negotiating an agreement with a telecommunications provider. Individual dioceses also may also publish their own guidance.

By way of example, projects where churches have been used for telecommunications equipment include in Norwich where internet service provider WiSpire has partnered with the Diocese of Norwich and media company Archant to provide broadband services. A similar scheme exists in Chelmsford, operated by County Broadband.

104 PQ131600, 13 March 2018 [Churches: Broadband and WiFi].

32 Mobile coverage in the UK

4. What would it take to achieve universal coverage?

The Government has committed to extend mobile coverage to 95% of the UK landmass by 2022.105 What would it take to extend coverage to 100% of the UK’s landmass?

Ofcom’s Chief Executive, Sharon White, in June 2018 tentatively estimated that providing universal coverage to all the UK landmass would cost up to £6 billion, and that some form of public subsidy would be required to achieve 100% coverage:

As we get beyond 92% of the UK’s geography and potentially towards 100%, increasing coverage means building masts in remote areas with no mobile signal at all.

Our view is that some form of cross subsidy would be necessary to do this. To keep costs down, there would be a strong case for contracting a single operator to build and operate masts where there are currently none, which all customers could then use.

How much would it cost? According to our estimates, to provide good mobile coverage across virtually all of the UK landmass would cost up to about £6 billion. That is an approximate number. It would need to be refined as operators gain practical experience in outlying areas. But it helps to illustrate the cost.106

In September 2018, Ofcom published the technical advice it provided to the UK Government in June regarding improving nationwide mobile coverage (and contained the £6 billion cost estimate referred to above). The advice described four main policy levers which Ofcom states would likely need to be used in combination, in addition to coverage obligations, to achieve near universal coverage:

1. Use public subsidy to pay for new coverage roll out: This is most likely to be an effective tool for covering total not spots (areas where no operators are currently present). The cost of covering total not spots will vary, depending on their location. While it is not possible to be certain of the costs, we estimate that addressing all total not spots would cost £3-6bn, once the 700MHz coverage obligations are factored in. Direct subsidy is less likely to be an appropriate means of tackling partial not spots as funding operators to overbuild their competitors’ networks could create distortions to competition.

2. Rural wholesale access (otherwise known as roaming – see Box 2): This would involve operators allowing customers to roam onto one another’s networks in rural areas. It could improve coverage by 2-3 percentage points for the holders of the 700 MHz coverage obligations and by 5-10 percentage for the other operators. Taken together with our proposed coverage obligations it could result in customers of all four operators getting coverage in around 90% of the UK. It introduces investment risks and consumer experience issues that could be mitigated to a

105 DCMS, DCMS, Future Telecoms Infrastructure Review, 23 July 2018, para 157. 106 Ofcom, Solid progress, but further to go for a Connected Britain, 19 June 2018.

33 Commons Library Briefing, 22 February 2019

degree. The surest way to introduce a rural wholesale access arrangement would be with the co-operation of operators. In the past, such arrangements have been strongly resisted by most mobile operators on the basis that the case to impose them is unsustainable, and we expect they will continue to take that position.

3. Infrastructure sharing: Mobile operators have extensive infrastructure sharing arrangements that allow them to share the costs of deploying coverage. Ofcom is considering ways in which we can facilitate further sharing.

4. Planning reform and other cost reduction measures: There are a range of measures the UK and devolved Governments could take to reduce the costs of building and operating mobile masts, and thereby facilitate coverage rollout. We believe the most useful potential measures include aligning the planning regime to give mobile operators the same compulsory purchase rights as other utilities, and extending the business rates relief recently granted for fibre deployment to mobile infrastructure.107

107 Ofcom, Advice to Government: Further options for improving mobile coverage, 14

September 2018.

BRIEFING PAPER Number CBP 7069 22 February 2019

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