Telecoms Reform 2026: Greater Certainty for UK Operators

On 7 April 2026, significant reforms under the Product Security and Telecommunications Infrastructure Act 2022 (“PSTIA”) came into force. For qualifying renewals in England and Wales and Northern Ireland, the reforms align rent valuation more closely with the Electronic Communications Code (“the Code”). For operators, this creates a more consistent framework for managing established sites, controlling renewal costs and supporting continued investment in reliable, high-quality digital infrastructure across the UK.

What has changed under the PSTIA reforms?

Before these reforms, some protected telecoms tenancy renewals (i.e. not contracted out of business tenancies legislation) were valued using traditional open-market principles. That approach could reflect the particular importance of a site to an operator’s network and produce higher renewal rents. The new framework removes much of that network-specific value from the valuation exercise, giving operators a clearer and more sustainable basis for renewal negotiations.

For qualifying renewals, rent is now assessed using the Code’s “no-network” valuation basis. The hypothetical transaction assumes, among other things, that the rights do not relate to an electronic communications network and that more than one suitable site is available. By excluding network specific demand and scarcity of suitable sites from the calculation, the regime is designed to prevent renewal rents from capturing the strategic value of a site to an operator. Although each valuation remains fact sensitive, the framework should generally support lower and more predictable renewal costs for operators.

In addition:

• Operators benefit from statutory continuity. Agreements granted pursuant to the Code will ordinarily continue after contractual expiry until brought to an end under the applicable statutory procedure. This helps protect network coverage while renewal terms are resolved.
• Operators may upgrade apparatus or share its use where the statutory conditions are met. Code rights cannot be contracted out of or made subject to payment, enabling networks to modernise infrastructure and use existing sites more efficiently.

Why the reforms matter to telecoms operators

The reforms strengthen the commercial platform from which operators can maintain and develop their networks. A valuation model that excludes network specific value should reduce exposure to inflated renewal demands and make long term site expenditure easier to forecast. Statutory continuation also reduces the risk that an essential site is lost because the contractual term has expired (albeit this risk is low in Northern Ireland for reasons set out in detail below).

In practical terms, operators should utilise the revised framework to:

• review renewal portfolios early and identify qualifying agreements and applicable transitional rules;
• prepare valuation evidence that applies the statutory assumptions and excludes network specific value;
• preserve operational continuity while renewal negotiations or proceedings are ongoing;
• use upgrading and sharing rights to improve capacity and efficiency; and
• maintain clear records of access, works and communications to support efficient site management and dispute resolution.

Northern Ireland telecoms renewals: important distinction

In Northern Ireland, qualifying legacy or subsisting telecoms tenancies may remain within the Business Tenancies (Northern Ireland) Order 1996 (“the 1996 order”), with renewal applications determined by the Lands Tribunal. The new valuation provision applies where the current tenancy is a subsisting agreement and its primary purpose is to confer Code rights. However, not every telecoms agreement follows that route. Some post Code tenancies primarily granting Code rights are excluded from the 1996 Order and fall to be dealt with under the Code. Operators should therefore confirm the date, status and purpose of each agreement before selecting the renewal procedure.

Key takeaway for telecoms operators

The reforms to the PSTIA give operators a stronger and more predictable basis for renewing, maintaining and modernising UK network sites. Their principal advantages are a Code based approach to renewal valuation, continuity of qualifying rights beyond contractual expiry, and protected flexibility to upgrade and share apparatus where the statutory conditions are satisfied. Used proactively, these tools can reduce site costs, improve operational resilience and help accelerate investment in mobile and fibre networks.

The rights are not unlimited and each site’s contractual and statutory position should be assessed carefully. This is particularly important where transitional provisions or the Northern Ireland business tenancy regime under the 1996 Order may apply.

Contact us

This article has been produced for general information purposes and further advice should be sought from a professional advisor. Please contact our team at Cleaver Fulton Rankin for further advice or information.

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