Telecommunications masts and wireless transmission sites
This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.
This class encompasses all strands of the telecommunications and broadcast industry. The main areas are:
- mobile network operators
- emergency services
- traffic monitoring sites
- wireless broadband operators
- small Wi-Fi and bluetooth sites in buildings
- smart meter sites
Each site can be considered as a communication station and may, additionally, include premises.
All the above types of sites should be categorised as one of the following:
Type | Description code |
Description |
Scat |
Suffix |
Mobile phone, emergency services and smart meter sites |
MT1 |
Communication station and premises |
066 |
G |
Traffic monitoring sites |
MT1 |
Traffic monitoring station and premises |
066 |
G |
Wireless broadband (public access) |
MT1 |
Public access wireless broadband site |
066 |
G |
Wireless broadband (subscription access) |
MT1 |
Wireless broadband site |
066 |
G |
Short range WiFi/Bluetooth equipment in buildings |
MTX |
Wifi/Bluetooth site |
066 |
G |
Overall responsibility for the valuation approach lies with the Utilities, Transport and Telecoms Team (UTT) of the National Valuation Unit. The Regional Valuation Units (RVUs) are responsible for individual list entries (compilation, maintenance and Check Challenge appeal settlement) for all of the above types.
The mast class co-ordination team (CCT) and the UTT are responsible for ensuring effective co-ordination takes place. The mast CCT is the first point of contact for guidance on maintenance or settlement work. The CTT and UTT will deliver practice notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists. Caseworkers have a responsibility to:
- follow the advice given at all times
- not to depart from the guidance given on settlement or maintenance work, without approval from the co-ordination team
- seek advice from the co-ordination team before starting any new work
5.1 Identification of the hereditament
A hereditament exists when the four essential elements of rateable occupation are present. The occupation must be actual, exclusive, beneficial and not be transient. A detailed discussion of the principles can be found in the Rating Manual: section 3 part 1 - part C hereditament (Para 3).
Additionally, the provisions of the non-domestic rating (telecommunications apparatus) (England) Regulations 2000 (SI 2000 No. 2421) must be applied when considering the establishment of a mast hereditament. See section 5.2 below.
5.2 Telecommunication sites which are artificial hereditaments
Telecommunication sites are a class of hereditament which may fall outside the normal rules of unit of assessment. These types of hereditaments are known as prescribed hereditaments. See Rating Manual: section 3 part 1.
The non-domestic rating (Telecommunications Apparatus) (England) Regulations 2000 (SI 2000 No. 2421) came into effect on 1 October 2000. It applies to telecommunications hereditaments occupied exclusively by telecommunications apparatus. The regulation enables the aggregation of all site sharers into a single hereditament on sites which are occupied exclusively by telecommunications apparatus. The principal operator or “host” of the site is held to be the rateable occupier in these circumstances. The host regulations apply only to sites which are occupied by two or more operators which do not form part of the same joint venture company.
The regulations make different provisions when telecommunication apparatus of a designated Central List is on site. See section 5.5 below.
The non-domestic rating (Telecommunications Apparatus) (Wales) Regulations 2000 (SI 2000 No. 3383) came into effect on 1 April 2001 in respect of local rating list in Wales. It is worded differently to the English regulations, but mirrors the effect.
5.3 Exclusive test
The regulations outlined above do not make a landowner or landlord responsible for the rate liability, provided they are not in the telecommunications business and they occupy the land, buildings or structures for a purpose other than telecommunications.
For example, where a hospital lets space to a telecommunications operator, the hospital remains as the principal hereditament, but a separate telecommunications hereditament is created. The telecommunications use creates a separate hereditament as it is a different use to the principal hereditament which is neither occupied exclusively by telecommunications equipment nor primarily used for sending or receiving wireless signals
The regulations achieve this by:
applying specifically to a telecommunication hereditament. The definition of this is a site forming a hereditament occupied exclusively by telecommunications apparatus of either a single operator or more than one operator; and
not enabling aggregation where the telecommunications hereditament is on or forms part of a structure occupied by the host for any purpose other than the provision of or operation of a site for telecommunications apparatus. An exclusive telecommunications hereditament means a broadcast or mobile telecommunications hereditament. It does not apply to fixed line or fibre exchanges.
The exclusivity test disregards the presence of ancillary accommodation used in the normal operation of a telecoms site, which may correctly form part of the principal telecoms hereditament.
The provisions of SI 2000 No. 2421 do not apply in the following circumstances:
- where the principal hereditament becomes redundant for the purpose it was originally designed.
- on a rooftop where each operator has a separate agreement with the building owner and there is no principal telecommunications hereditament.
However, if the building owner lets the entire rooftop to a telecommunications site provider which then sublets the rooftop to individual operators as site sharers, the site provider becomes a host of a principal telecommunications hereditament. All the site sharers must be aggregated into the site provider’s host telecommunications hereditament.
5.3 Single operator sites
A single operator site is a site from which only one operator broadcasts or transmits telecommunication signal. A single operator may still exist when a joint venture company, formed by two separate network operators, broadcasts signals for each of the operators within it. A single operator site exists even when the site is provided by a third party which is not broadcasting from the site.
5.4 Shared sites
Where more than one operator, not forming part of a joint venture company, or where a third party infrastructure provider broadcasts or transmits themselves then the telecommunications site will be considered as a shared or “hosted site”. The SI 2000 No. 2421, or No. 3383 in Wales, impacts upon the consideration of who is the host and, consequently, the rateable occupier.
When a site is a shared site, consideration must be given to:
- what the principal telecommunication is
- who is the host
- who is in rateable occupation of the whole telecommunications site including the site sharers
The definition of host in the appropriate SI means that the telecommunication site provider or operator who receives the site share payments, or would be entitled to receive the payments, will be the ratepayer for the whole telecommunication hereditament.
Site Sharing is achieved by:
Traditional methods where each of the operators attach their own equipment e.g. cabling etc to the structure and install their own cabin/cabinet.
Random Access Network or RAN sharing is achieved by the installation of additional electronic (non rateable) equipment.
Mobile Operator Random Access Network (MORAN) sharing the installation of additional electronic non rateable equipment which enables the transmission signals of two different mobile network operators from the same set of equipment.
When a site is shared by two operators in the same joint venture company using MORAN technology, no addition is made for this sharing arrangement.
5.5 Central List occupiers and telecommunication sites
Where a telecommunications site contains telecommunication apparatus of a designated Central rating list occupier and that Central Rating List occupier is not the host, their apparatus is deemed to be “excepted apparatus”. It is excluded from the aggregation. No account should be taken of Central List site sharers when considering the valuation of the host site.
This applies whether or not
the Central List telecoms apparatus at the host site is capable of forming a separate hereditament. a designated person shares a site with another designated person who is the host of the principal telecommunications hereditament.
Whilst a Central List occupier’s equipment may be treated as excepted apparatus, its presence will qualify the site as a shared site under SI 2421. This impacts the identification of unit of assessment and appropriate number of operators/sharers The host should be assessed as they are in rateable occupation.
Where a Central List occupier is the host, there are two possible situations.
The mast is a remote stand-alone site. The sharers are merged into the host assessment and included in the central list assessment.
The mast is part of a larger non-telecoms hereditament for example an electricity pylon, water tower or a gas hereditament. The principal hereditament is not used exclusively for telecommunications, so the host provisions of SI 2421 do not apply. A separate assessment is required for each site sharer which has an exclusive room, cabin or compound. Where the site uses non-exclusive accommodation with the Central List host, they will be included in the Central List assessment of the host. There is no separately identifiable hereditament as paramount control of the shared accommodation lies with the “designated occupier”.
Details of Central List Occupiers are set out in the Rating Manual: section 2 part 2.
The Central List host site forms part of the occupier’s central rating list assessment, provided that the site is not an excepted hereditament” as defined in Part III of the Central Rating List (England) Regulations SI 2000 No 535.
Central List assessments are dealt with by the UTT. Queries on the local list/Central List boundary should initially be referred to the team.
5.6 The Electronic Communications code
The electronic communications code (‘the code’) enables electronic communications network providers to construct electronic communications networks. The code enables these providers to construct infrastructure on public land (streets) and to take rights over private land, either with the agreement with the landowner or applying to the County Court or the Sheriff in Scotland. It also conveys certain immunities from the Town and Country Planning legislation in the form of Permitted Development. In addition to providers of electronic communications networks the code is also available to those who wish to construct conduits to be made available to network providers.
There has been an electronic communications code in place since 1984. The current electronic communications code, part of the Digital Economy Act 2017, took effect on 28 December 2017. The new code is designed to further facilitate the installation and maintenance of electronic communications networks of operators with code powers. It changes the assumptions for valuation of land used for the provision of telecommunications infrastructure. Consequently, rents determined under the new code will be significantly different from rents which have been agreed or determined under the previous code.
The valuation assumptions required under the new code do not accord fully with the rating hypothesis. Advice should be sought from the UTT if caseworkers receive arguments that such rents should be used as the basis of a rating valuation.
The type of survey requirements differ depending on the type of site being considered. Surveys for all sites should record information of all site occupiers as this impacts upon the identification of the rateable occupier as well as the valuation.
6.1 Telecommunication mast sites
The majority of communication masts sites are valued using a hybrid approach; rentals approach for site value and contractors’ method of valuation for the rateable plant and machinery.
The survey should identify and record the plant and machinery to enable the cost element of the valuation to be undertaken.
The following details should be recorded when assessing a site.
- relevant site reference, including operator/host
- general description of mast
- mast height
- site dimension where appropriate
- names of all operators present on site
- details of construction, including size and composition of associated cabins/cabinets
All other associated rateable plant and machinery, which may include:
- roadways and car parking
- other surfaced areas
- site fencing, type and height
- gates
- cabling and supporting cable tray
Full guidance on what is included in the costings adopted can be found in the VOA cost guide.
6.2 5G sites
The major network operators began the roll out of 5G infrastructure and equipment from June 2019 onwards. Initially, sites were limited to a few large cities and to small areas within those cities. At time of writing, 5G infrastructure is more widely established covering more towns and cities and larger areas within them. Mobile network operators appear to have focused on upgrading of existing sites, rooftops, greenfield and highways sites. Typically, this will result in taller masts with additional cabins on greenfield site. Rooftops site upgrades may involve replacing stub towers and/or re-siting equipment closer to the edge of the rooftops. They will also include the provision of more cabins on the rooftop. All relevant survey information should be recorded as above.
The deployment of small cells to enable greater network coverage is anticipated but, at time of writing, there is no evidence of such deployment at scale. As 5G networks develop they may utilise large numbers of small cells which may or may not have fibre connectivity. Survey requirements for such sites will be different as there will be implications for the correct unit of assessment. Survey requirements for such sites will be updated as and when such sites come into existence.
6.3 Wireless broadband hereditaments
Wireless Broadband sites are usually installed on or in a building, street furniture or mast and use equipment similar to that of a wireless broadband router in the home.
To establish whether a separate rateable wireless broadband hereditament exists, the host of the assessment must be identified. The following survey data should be recorded:
- is the host property occupied or unoccupied?
- is the wireless broadband site subject to a separate lease or agreement?
- is the WiFi site solely used by the occupier of the host premises in connection with the use of the host premises (see Rating Manual: section 3 part 1 - part C hereditament (Para 3)) and should it be assessed with the host premises?
Is the Wireless Broadband equipment sited on a host mast or communication station covered by Statutory Instrument 2421 and therefore should be assessed as a site sharer on the host mast? Wireless Broadband sites require separate assessment when occupied under a separate lease or agreement to the host property for a period of 12 months or more, other than when it is a site share on a mast (SI2421 in England and SI3343 in Wales), and when the Wireless Broadband service is considered to be part of the Host property occupation, such as a WiFi site in a coffee shop used by the customers of the coffee shop. The installation adds to the customer enjoyment of the “host” property and the value will often be deminimis relative to the value of the whole hereditament.
6.4 WiFi/Bluetooth sites
These sites are mainly found in unoccupied premises. Consideration must be given to whether a site inspection is necessary.
Where it is considered necessary to confirm the details of a Wifi/Bluetooth hereditament through internal inspection of the site, it is recommended that the equipment in use be photographed and recorded on a plan. A checklist is provided at Appendix 3 and must be used to record the details of the site, equipment, the position of equipment and any accompanying display notices.
A copy of the Wifi/Bluetooth operators lease or agreement to occupy is helpful in establishing the facts of occupation.
Survey details should be captured on the appropriate software application - the Communication Masts Application for telecommunication masts and WiFi sites. The Non-Bulk Server (NBS) for larger sites valued using a full contractor’s basis.
Plans, surveys and other information should be stored in appropriate folder within the Electronic Document Records Management (EDRM) system.
The valuation approach for the majority of communication sites is a hybrid approach: the rentals based valuation for the building or land, with additions for rateable plant and machinery based on decapitalised cost at the statutory decapitalisation rate.
The rental evidence has been considered nationally and a scheme of site values has been derived. The site value vary according to site type and geographic location. A summary of the scheme is provided in the Practice Note for Telecommunications Masts.
The valuation of the mast must be carried out within the communication masts application.
Support and guidance can be obtained from the mast class co-ordination team and from the UTT.
Valuations are supported by the Survaid, Communication Masts Application and with reference to the Cost Guide.
1. Market Appraisal
Consolidation and mergers of mobile network operating companies were not a feature of the telecommunications market at the Antecedent Valuation Date (AVD) of 1 April 2021.
Mobile network operators began to install new infrastructure and equipment to enable the rollout of their 5G networks from June 2019 onwards, limited initially to a small number of cities. By the AVD mobile operators had developed 5G capability in many towns and cities.
The largest mobile network operators (MNOs) continue to operate joint venture companies to facilitate the sharing of telecommunications infrastructure. However, evidence is emerging that MNOs are building unilateral sites for 5G masts in addition to sites they occupy through joint venture companies.
The impact of site sharing through joint venture companies together with the introduction of a new Electronic Communications Code has resulted in a decline in the number of payaway fees. Whilst such fees are less common in the market, they have not disappeared completely. Where a site is shared by operators not subject to the same joint venture agreement then a payaway fee may be payable.
In addition to the MNOs there are companies, known as third party providers, which provide infrastructure for the MNOs and the provision of sites for the broadcast of TV and radio signals and the smart meter network.
2. Changes from the Last Practice Note
2.1 The Electronic Communications Code
The provision and operation of sites for electronic telecommunication networks have been regulated by the Electronic Communications Code since 1984.
A new Electronic Communications Code (part of the Digital Economy Act 2017) took effect on 28 December 2017. The new Code is designed to further facilitate the installation and maintenance of electronic communications networks of operators with Code powers.
The new Code changes the assumptions for the valuation of land to be used for the provision of electronic telecommunications infrastructure. In circumstances where a Code agreement is imposed upon a landowner/occupier or where the court is required to specify terms where the parties are unable to agree, valuation of the compensation will be on a “no scheme” basis based on compulsory purchase principles – rights valued on the basis of their value to the landowner rather than on the basis of the value to the operator for use as a telecoms site. Thus, any new agreements for mobile telecommunication sites made after 28 December 2017 under Code powers will be fundamentally different to those agreed before that date.
2.2 Emergency Services Network (ESN)
Emergency services network provision is in the process of switching from the previous radio-based system to 4G technology. This requires the construction of new sites to ensure the coverage necessary for the emergency services. The existing system remains as there have been delays in the development of a sufficient number of sites to enable the anticipated 4G network to become fully operational.
2.3 Smart Meter Network
A new national communication infrastructure to support the roll-out of smart meters has been developed. The infrastructure may be on new or existing sites. It may be on highways, greenfield or rooftop locations.
When attached to communications masts already in assessment some of the actual equipment for this infrastructure is not rateable, but it can still impact upon the rateable occupier. The general principle is that if the operator of the new equipment is the rateable occupier of the “parent” mast, the installation will have no effect on who is considered to be the rateable occupier. Alternatively, where the equipment is installed onto a mast from which the operator was not previously transmitting, a review of the assessment will be required to reflect the provisions of SI 2421. However, advice should be sought from NVU where changes are being made to a site as a consequence of smart meter technology.
2.4 5G technology
Commercial 5G networks began operating in June 2019. Initial roll-out was limited to a small number of cities. All mobile network operators are continuing their programme of upgrading sites and expanding their 5G network provision.
Upgrading of an existing greenfield or highway site to enable 5G transmission typically involves the replacement of the existing mast with a taller mast and the provision of more cabins and cabinets.
Typically, 5G equipment is heavier and more numerous than the equipment required for 4G transmission. As a result, the upgrade of rooftop sites may require the installation of a taller and more substantial stub tower capable of supporting the 5G equipment. It may result in antenna and supports being upgraded and moved to the edge of the building. It often involves the provision of additional cabins and cabinets on the rooftop.
The wider deployment of small cells as part of 5G networks is anticipated, but, as yet, evidence is very limited.
3.0 Ratepayer Discussions
Discussions with agents for the purposes of Revaluation 2023 had not taken place at the time of writing. It is anticipated that discussions with ratepayers’ representatives will take place prior to draft list publication.
4.0. Valuation Scheme
This practice note covers communications stations with a special category code of 066. It includes mobile telecommunication mast sites situated on highways, greenfield sites and rooftops.
4.1 Mobile telecommunication sites
The valuation approach is based on a site rent value with an addition for the rateable plant and machinery on the site.
4.2 Rental Evidence
Rental evidence is available for site rents for greenfield sites, rooftops, micro and pico cells. There is no rental evidence available for communication stations situated on public highways. The site rent values for these sites is derived from greenfield evidence.
Analysis of the available rental evidence has resulted in the designation of two valuation zones:
- Outside M25
- Inside M25
The scheme is split within each of those zones to distinguish between rooftop and non-rooftop sites. The schemes for site values for each zone and each category are set out below.
The values below are not yet agreed for the R2023 list. The values will be included within the valuation application. They may be subject to change if agreement is reached through central discussion with the operators and their agents prior to list publication.
4.3 Site values outside M25
4.3.1 Greenfield sites
Greenfield sites | |||
---|---|---|---|
Type/definition | Height | Base site value | Cap |
Highway sites: non-demised sites up to 15m in height located on a highway where no rent is paid | up to 15m | £4,600 | N/A |
All Monopoles and towers not located on a highway | Up to 25m | £5,750 | To be confirmed |
All Monopoles and towers | between 25.01 and 45m | £6,600 | To be confirmed |
Towers | Between 45.01 and 60m | £13,000 | To be confirmed |
Towers | Between 60.01m and 150m | £13,500 | To be confirmed |
Guyed masts | Between 30.01 and 150.9m | £7,500 | To be confirmed |
Towers and or guyed masts | Over 151 m | £27,000 | |
Single guyed radiators | All heights | £7,500 | N/A |
Paired guyed radiators | All heights | £11,250 | |
Single and paired guyed radiator with monopole or tower | All heights | value as a pair Guyed radiator +25% of appropriate value attached to monopole/tower If single +50% of appropriate value attached to monopole/tower | N/A |
Traffic monitoring sites | All Sites | £140 | £XXX |
Site share addition/(Greenfield payaway) | To be confirmed | ||
Minor Sharers | A company paying a rent less than or equal to £5,000 will be considered a minor sharer and therefore no valuation addition made for them being present on a site. | ||
Pico or Micro Cells where wall mounted on or in buildings /kiosks | £2,500 | N/A | |
Pico or micro cells within airports, stadia | To be confirmed | N/A | |
TV stations. A greenfield site used as a TV and radio broadcast “repeater”. Generally located in rural locations where there is generally little/no demand by the MNOs. These sites will be single operator and could be up to a height of 45 m | £2,750 | N/A |
4.3.2 Rooftop sites
Rooftop sites are divided into three broad categories.
Category 1: non-typical rooftop sites offering greater than normal coverage. These are often, but not exclusively, to be found in central or prime locations or in areas of high mobile traffic volumes. Regard is had to the individual rents on such sites.
Category 2: these sites make up the majority of rooftop assessments. They will be in a variety of locations; secondary commercial areas, suburban and industrial areas.
**Category 3: **sites not within those above. These sites may be in very rural locations or may be on rooftops which offer only limited coverage due the height and being overshadowed by surrounding buildings.
Rooftop Site Values | |||
---|---|---|---|
Category 1 | Category 2 | Category 3 | |
Outside M25 (England and Wales) | To be valued individually. Non-typical and where the passing rent, adjusted to AVD, falls outside category 2 or 3. Non-typical sites may be regarded as rooftops offering greater than normal coverage, those in central or prime locations or in areas of high mobile traffic volumes. | £12,500 | £6,000 Poorer locations, for example rural areas with limited population density. Regard may be had to individual rents which, when suitably adjusted to AVD, produce a value below £5,000. |
4.4 Site values inside M25
4.4.1 Greenfield sites
Greenfield Sites | |||
---|---|---|---|
Type/definition | Height | Base site value | Cap |
Highway sites: non-demised sites up to 15m in height located on a highway where no rent is paid | up to 15m | £6,200 | N/A |
All Monopoles and towers not located on a highway | Up to 25m | £7,750 | To be confirmed |
All Monopoles and towers | between 25.01 and 45m | £13,500 | To be confirmed |
Towers | Between 45.01 and 60m | £18,500 | To be confirmed (6 Major sharers) |
Towers | Between 60.01m and 150m | £22,000 | To be confirmed (7 Major sharers) |
Guyed masts | Between 30.01 and 150.9m | £17,000 | To be confirmed |
Towers and or guyed masts | Over 151 m | All value individually | |
Single guyed radiators | All heights | £17,000 | N/A |
Paired guyed radiators | All heights | £25,000 | |
Single and paired guyed radiator with monopole or tower | All heights | value as a pair guyed radiator +25% of appropriate value attached to monopole/tower If single +50% of appropriate value attached to monopole/tower | N/A (Not agreed under working party) |
Traffic monitoring sites | All Sites | £140 | To be confirmed |
Site share addition/(Greenfield payaway) | To be confirmed | ||
Minor sharers | A company paying a rent less than or equal to £5,000 will be considered a minor sharer and therefore no valuation addition made for them being present on a site. |
Available rental evidence for pico and micro cells within the M25 shows differing values for high volume traffic areas such as railway stations or shopping centres and postcode areas within Westminster, City of London and some other business districts. The 5 categories are set out below.
Pico and micro cells, wall mounted on or in buildings/kiosks (including flag pole types on sides of buildings and forecourts) | ||
---|---|---|
Category | Location | Site value |
Category 1 | Main line stations termini and shopping centres | To be confirmed |
Category 2 | Postal districts W1, WC2, EC1, EC2, EC3, EC4, E14 | To be confirmed |
Category 3 | Postal districts N1,N6, N7, NW1, NW3, NW5, NW6, NW8, SW1, SW3, SW5, SW7, SW10, W2, W8, W9, W10, W11, W14, WC1, E1, E2, N1, N14 | To be confirmed |
Category 4 | Postal districts NW10, SW6, W6, W12, E3, E5, E8, E9, N5, N7, N16, N19 | To be confirmed |
Category 5 | All other postal districts and locations not included above. | To be confirmed |
4.4.2 Rooftop sites
Rooftop sites are divided into three broad categories.
Category 1: non-typical rooftop sites offering greater than normal coverage. These are often, but not exclusively, to be found in central or prime locations or in areas of high mobile traffic volumes. Regard is had to the individual rents on such sites.
Category 2: these sites make up the majority of rooftop assessments. They will be in a variety of locations; secondary commercial areas, suburban and industrial areas.
**Category 3: **sites not within those above. These sites may be in very rural locations or may be on rooftops which offer only limited coverage due the height and being overshadowed by surrounding buildings.
Rooftop Site Values | |||
---|---|---|---|
Category 1 | Category 2 | Category 3 | |
Inside M25 (Excluding Central London postcode areas: EC, E13 – E16; NW1, NW3; SW1; W1; WC) | Valued individually where the rent passing, adjusted to AVD, is tbc% greater than the Category 2 site value. | £18,000 | Valued individually where the rent passing, adjusted to AVD, is tbc% lower than the Category 2 site value. |
Central London Postcode Areas | Valued individually where the rent passing, adjusted to AVD, is tbc% greater than the Category 2 site value. | £28,000 | Where the rent passing, adjusted to AVD, is tbc% lower than the Category 2 site value; site value £20,000. |
4.5 Site Sharing and Payaway
Mobile network operators continue to share sites through joint venture companies and the use of Mobile Operator Random Access Network (MORAN) sharing.
The new Electronic Communications Code prevents this type of payment being taken into consideration when agreeing Code site rents. Rent reviews in older agreements will be on terms which do not reflect the new Code provisions. Such rents may still include provision for site sharing and payaway.
The valuation scheme makes no addition for site sharing and payaway.
1. Market Appraisal
1.1 Consolidation
The Telecoms market at the AVD and before has been undergoing change with companies entering into collaborations leading to a general convergence of the Telecom companies and the products that they are able to offer.
In 2008 T Mobile and Hutchison Whampoa (otherwise known as 3 (Hutchison 3G)) created a 50:50 joint venture called Mobile Broadband Network Limited. MBNL was set up to allow the sharing of infrastructure that would provide savings in both Capital Expenditure (CAPEX) as well as Operational Expenditure (OPEX). Their aim was to be achieve these costs by sharing sites through RAN sharing methodology. In contrast to the traditional method of sharing, where each company installs it own equipment (cabling cabins etc) RAN or radio access network sharing is achieved through electronic means - see glossary.
In locations where T Mobile and 3 both previously existed, the direct consequence of this joint venture was for Hutchison or “3” sites to be decommissioned, with the transmission being moved to the nearby T Mobile site.
In late 2009 initial discussions between Telefonica UK Ltd and Vodafone commenced which led to the establishment of Cornerstone.
Cornerstone’s model was fundamentally different to MBNL. Unlike MBNL who share sites and operate through one set of infrastructure, it is understood that CTIL initially provided an estate management function for the two Mobile Network Operators (MNOs) before developing a longer term operational network plan/structure.
Subsequently the relationship was strengthened with the creation and incorporation of the company now known as Cornerstone Telecommunication Infrastructure Limited in 2012. CTIL commenced the delivery of a revised network of masts in 2014/2015 with the country now split geographically. Vodafone will now be the primary operator in the west of England and Wales; Telefonica UK Ltd known as O2 will be the primary operator on the eastern side of the country. Each will also occupy as sharers where they are not the primary operator.
In April 2010 France Telecom (Orange) and Deutsche Telekom (T Mobile) announced a formal merger of their UK operations and Everything Everywhere (EE) was born.
The reality is that this was a re-branding of T Mobile, their company number simply was transferred to the new company, with the assets of Orange being acquired.
All of the above events have occurred since the 2010 list AVD but importantly have done so well before the AVD for the 2017 list. It has been agreed that the rental evidence used to establish the proposed scheme of value for 2017 reflects the circumstances outlined above.
The market in Telecoms is forever changing; further mergers have been announced or known:
-
In November 2014 BT announced proposals to acquire either O2 or EE. Following discussions BT made an offer of £12.5 billion for EE, with the deal being announced in February 2015
-
In early March 2015 3 (Hutchison Whampoa) agreed to purchase O2 for £10.25 billion.
Although not yet completed it could reasonably be argued that they would be in the mind of the hypothetical landlord and tenant in reaching an agreement at the AVD. It certainly can be suggested that any actual evidence of market rents since this time would have been agreed in the knowledge of potential future changes.
Consolidation within the telecommunication market is leading to an increase in the sharing of sites and decommissioning of sites where two former competitors had sites neighbouring each other. However there is still demand for sites in areas where operators do not have a presence.
1.2 Changes to the Electronic Communication Code
Under pressure from the industry to reduce costs (site rents) and to provide easier access to enable them to fulfil the licence requirements, the government is preparing proposals to update the Electronic Communication code (The Code) and make some minor amendments to the planning regime.
At the time of publication it is still unknown what is being proposed.
However, with consultations commencing 2014 it could be reasonably argued that the hypothetical landlord and tenant would have been aware that changes to The Code were being proposed and would be in their minds in reaching an agreement on value at AVD.
2. Changes From The Last Practice Note
The changes are a consequence of company mergers and joint ventures, as outlined above. The main operators are currently:
a) Everything Everywhere previously T Mobile and Orange;
b) Hutchison 3G;
c) Vodafone; and
d) O2 (Telefonica UK Ltd)
Other mast providers include:
e) Airwave Solutions - provide mission critical closed network for the emergency services;
f) Arqiva - Provide sites for the broadcast of TV and Radio as well as infrastructure provision to the mobile companies;
g) Wireless Infrastructure Group (WIG)
Whilst the mobile phone companies operate independently their network of mast sites are managed by:
Firstly - MBNL for EE and 3; and
Secondly - CTIL for Telefonica (O2) and Vodafone
Please note that although these “managing” companies acquire and project manage the site development they are not in rateable occupation.
2.1 Site Sharing
This is the term used where operators agree to co-locate on a single site/Mast. Traditionally this has resulted in the sharer adding their own equipment to an existing structure.
Technological advances means that sharing can be achieved by installation of additional electronic non rateable equipment. The term for this type of sharing is radio Access Network (RAN) sharing.
2.1.1 Greenfield Sites
Due to changes in the market highlighted in para 1.1 above the site rental now reflects the occupation of a site to be used by the “head tenant” to operate their “family of providers” through the site.
To reiterate changes brought about by network consolidation have been noted in the passing base site rents.
It is recognised that at both the Antecedent Valuation Date (AVD) and potentially Compilation Date (CLD) not all greenfield sites will have been consolidated. However, in discussion with the operators representatives they were very clear that the rents paid in the period post Jan 2013 reflected the right of MBNL to operate any one of their joint venture companies network. This situation is now being replicated by CTIL for Vodafone and Telefonica UK Ltd (O2) under their MORAN (Multiple Operator RAN) project.
2.1.2 Payaway
The term Payaway is used by the telecoms industry to reflect the additional amount a landlord would expect in addition to the base rent. This has tended to be a percentage of the fees received by the head tenant from other users on the site. The percentage on Greenfield sites has declined as the telecoms market has matured.
The evidence suggests that where any of the head tenant’s extended family occupy part of the site there should be no Payaway, but may be sought where there are users unconnected to the head lessee.
There is evidence still to suggest an addition to the base rent (Payaway) is demanded and paid in respect of users unconnected to the head lessee.
Analysis of the evidence suggests that this should be £2,500 for sharers on a Greenfield sites both inside and outside the M25.
The qualification for an addition to be made the assessment is, where in addition to the HOST operator, the sharer: a.has their own rateable plant and machinery; and b.is not part of the host company
Where both these criteria are satisfied then a separate sharing addition should be added.
2.1.3 Site Rent - The Cap
This is the maximum site rental value that should be applied to the Hybrid valuation in calculating the overall rateable.
It is acknowledged that the market the landlord would not expect or receive infinite additional payments (Payaways). Therefore the CAP replicates the market in establishing a maximum that we apply for a given site. The CAP is based on the base rent plus an amount of Payaway assumed from the maximum number of site sharers that would likely to be present.
On the highest structures the CAP will be greater as the anticipated number of site sharers will be greater.
2.1.4 Sharers - Major and Minor
As outlined above the base site rent reflects the occupation of a head tenant. In those instances where they themselves do not transmit or broadcast then they are substituted by the immediate first operator (sub tenant).
If there are any further occupiers it is then necessary to consider if they are
(i) minor sharer
defined as any other occupier/operator who whilst occupying pays a rent of less than or equal to £5,000.
No site share addition will be made in these instances to reflect their presence on the site.
(ii) Major Sharers
All the major mobile phone companies are considered major sharers together with anyone who pays a rent above the £5,000 limit.
The addition of £2,500 is applicable and applied where appropriate given the rules set out above.
2.1.5 Sharing - Rooftop Sites
The basis for rooftops is completely different and so is the calculation to arrive at the addition made where sharing takes place.
Once the evidence has been considered a further paragraph may be added re the approach to caseworkers should take where rental evidence exists/doesn’t exist.
2.2 Impact of Changes Post 2010
Potential changes to “the code” being proposed at the AVD as well as the joint ventures outlined in 2.0 above provided doubts that there would be sufficient information to retain the site share addition especially on sites up to 30 metres in height.
However, following discussions with the various parties it was confirmed that site share fees are still paid where a CTIL company shares with an MBNL company and vice versa.
In the circumstances it was agreed to retain the addition £2500 for site sharing (see below) on Greenfield sites. In a change from previous lists where the addition for within the M25 was greater than the remainder of the country the addition is now considered a national addition and applicable in all areas to Greenfield sites.
3. Ratepayer Discussions
Members of the CCT met with industry representatives in a series of meetings between 18 and 20 August 2015.
A number of matters were discussed, including:
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Clarification on rental payments and the number of permitted operators;
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Highways/Streetwork sites; and
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Whether height was a real determining factor on value.
The results of these exchanges is shown in paragraph 4 below.
4. Valuation Scheme
4.1 National Scheme
There are two valuation zones: i.Outside M25; and ii.Inside M25
4.2 Greenfield Basis
4.2.1 Highway / Streetwork Sites
The definition was not agreed or finalised in the discussions with industry, however, the Valuation Office Agency view is:
“a non demised site of up to 15 metres in height located on the highway, where no rent is paid”
4.2.2 Size Height Bands
It was agreed to simplify the valuation approach and to reduce the “size” bands. The table below reflects outcome of the discussions, which the operators’ representatives intend to recommend to their clients for sites up to 30 metres in height.
All operators are working towards all sites being consolidated before 1 April 2017. There will still be instances where sites are occupied by a single operator. It is also becoming less common for sites to be “traditionally” shared, with the exception being on sites hosted by an infrastructure provider e.g Arqiva.
4.2.3 Single Operator Sites
From the discussions with the operators it is understood that at the compilation date there will be instances where sites will be occupied by a sole operator.
The basic site rent will apply with no allowance applicable.
4.2.4 Consolidated Sites
In a change from previous rating lists the base site rents, tabulated below, reflect the occupation of two operators on “a consolidated site”. Rental evidence and consultation with the industry indicates that that landlords have accepted this as being a standard condition.
A consolidated or RAN shared site will have two operators from either of the managing companies operating through a single set of equipment and the rents now being paid reflect these circumstances.
The rental evidence analysed assumes that the rent reflects the ability of the head tenant to operate their “family of providers” through the site.
Therefore where MBNL have developed a site it may have EE operating or EE and 3 and the basket of rental evidence reflects either of these scenarios.
4.2.5 Non Consolidated Sites
The analysed rents assume that the rent reflects the ability of the head tenant to operate their “family of providers” through a consolidated or RAN shared site.
There will still be instances where a site contains two providers from within the same management company. In these cases no addition should be made to the base rent.
4.3 Rental Basis - Tabulated
4.3.1 Outside M25 - Site Rentals
4.3.1.1 Greenfields
TYPE/DEFINITION | HEIGHT | BASE RENT | CAP See section 2.1.3 above |
Highways</p> "A non demised site of up to 15m in height located on a highway where no rent is paid</p> | up tp 15m | £5,250 | N/A |
All Monopoles and Towers not located on a highway | Up to 30m | £6,600 | £19,101 |
All Monopoles and Towers | between 30.01 and 45m | £12,000 | £27,001 (6 Major Sharers) |
Towers | Between 45.01 and 60m | £16,500 | £34,001 (7 Major sharers) |
Towers | Between 60.01m and 150m | £20,000 | £40,001 |
Guyed Masts | Between 30.01 and 150.9m | £17,000 | |
Towers and or Guyed Masts | Over 151 m | All valued individually | |
Single Guyed Radiators | All Heights | £17,000 | N/A |
Paired Guyed Radiators | All Heights | £25,000 | |
Single & Paired Guyed Radiator with Monopole or Tower | All Heights | Value as a pair Guyed Radiator +25% of appropriate value attached to monopole/tower</p> If single +50% of appropriate value attached to monopole/tower</p> | N/A (Not agreed under working party) |
Traffic Master | All Sites | £140 all inc of P&M | |
Site Share Addition / (Greenfield Payaway) | - | £2,500 | |
Minor Sharers | A company paying a rent less than or equal to £5,000 will be considered a minor sharer and therefore no valuation addition made for them being present on a site. |
Pico or Micro Cells where wall mounted on or in buildings /kiosks (including flag pole types on sides of buildings and forecourts)
LONDON CENTRAL AND WESTMINSTER AREA | Value | Location |
Pico or Micro Cells where wall mounted on or in buildings /kiosks (including flag pole types on sides of buildings and forecourts) | Category 1 £6,000 | Main Line Stations Termini and Shopping Centres |
Category 2 £3,250 | Postal Districts W1 and WC2 | |
Category 3 £3,000 | Postal Districts EC1,N1,N6,N7,NW1,NW3,NW5 NW6,NW8,SW1,SW3,SW5,SW7 SW10,W2,W8,W9,W10,W11,W14 WC1 | |
Category 4 £2,750 | Postal Districts NW10,SW6,W6,W12 | |
TV Repeater Stations “Broadcast Mast” with No sharers on Greenfield sites up to 45 M | N/A | |
LONDON CENTRAL -CITY AREA ONLY | Value | Location |
Category 1 | Valued separately, supported by individual rents. | |
Category 2 £3,250 | (City) Postal Districts EC1,EC2,EC3,EC4 | |
Category 3 £3,000 | (City Fringes) Postal Districts E1, E2,N1,N14, remainder of E14 | |
Category 4 £2,750 | (Remainder) Postal Districts E3,E5,E8,E9,N5,N7,N16,N19 | |
TV Repeater Stations “Broadcast Mast” with No sharers on Greenfield sites up to 45 M | N/A | |
LONDON SOUTH AND NORTH AREAS OUTSIDE OF CITY AND CENTRAL AREAS (Former London South and North Groups) | ||
Value at ALL Locations | ||
Pico or Micro Cells where wall mounted on or in buildings /kiosks (including flag pole types on sides of buildings and forecourts) | £2,750 | |
TV Repeater Stations “Broadcast Mast” with No sharers on Greenfield sites up to 45 M | N/A |
4.3.2.2 Rooftop Sites Inside M25
Reserved
Note these figure include rateable P&M unless the rateable equipment is similar to that found at mobile phone sites (such as towers or cabinets).
Appendix 1
EXAMPLES
The following scenarios are to assist the understanding of the above guidance note. They are illustrative only and in no way meant to be exhaustive as the individual circumstances of particular sites will need obtained.
Single Operator Site (Para 4.2.3)
Everything Everywhere (EE) is the single operator
Base Rent = £5,000
Sharer addition = ZERO as None present
Total Site Rent = £5,000
2 Consolidated Sites (Para 4.2.4)
Site is managed by MBNL, EE and 3 occupy the site and share one set of equipment (RAN Share)
Base Rent = £5,000
Sharer addition = ZERO
tal Site Rent = £5,000
Non Consolidated “Shared Site” (Para 4.2.5)
Scenario 1
Where the site is managed by one of wither MBNL or CTIL and historically both there providers are in occupation and transmitting e.g MBNL and EE and 3 are on site and have their own set of equipment.
Base Rent = £5,000
Sharer addition = ZERO
tal Site Rent = £5,000 - See Notes below
Scenario 2
As scenario 1 above but with a further sharing by Airwave and O2 (Telefonica UK Ltd)
Plus Sharing
Base Rent = £5,000
Airwave + £2500
O2 + £2,500
tal Site Rent = £10,000
4 Infrastructure Provided Sites
Scenario 1
Site is managed by Arqiva but only EE occupy and transmit from the site
Base Rent = £5,000
Sharer addition = ZERO No site sharing occurring
Total Site Rent = £5,000
NB: This is the same as 5.1 above
Scenario 2
Site is managed by Arqiva. Arqiva broadcast from the site and EE occupy and transmit as a sharer. They have their own rateable equipment
Plus Sharing
Base Rent = £5,000
EE + £2,500
Total Site Rent = £7,500
Notes:
3 Scenario 1
At Compilation Date (CLD) there will be some sites that due to historic agreements will continue to be operated on as a Non Consolidated sites i.e. they will have their own equipment.
It is evident from the majority of the new lease agreements that the preference of MBNL and CTIL would be to have one set of equipment and to RAN share.
In rating the hypothetical tenancy is considered at the Material Date with the tenant coming fresh to the scene.
Therefore in comparison with the 5.2 how it can be justified that where these circumstances exist the tenant would agree to pay an additional £2,500.
NB: All the rateable P&M would be valued.
1. Market Appraisal
Limited open market evidence exists.
Wifi/Bluetooth sites may be used in connection with a business conducted from the host property, such as a coffee shop. This is seen as an attraction to customers who can access the WiFi for free., Alternatively WiFi may be installed in vacant premises.
2. Changes From The Last Practice Note
These installations continue to be installed in both occupied and vacant buildings . However the duration of their presence within a fixed unit of accommodation varies according to the individual needs of both the operator and the landlord.
3. Ratepayer Discussions
No discussions with the industry as these types of WiFi/Bluetooth installations are generally installed at the request of Landlords whilst the host unit of accommodation is vacant.
4. Valuation Scheme
A site in an empty property will form a separate hereditament if it fulfils the criteria necessary to become a separately rateable hereditament. It is a common characteristic that sites are occupied for short, or transient, periods. When occupation exceeds 12 months the site becomes a separately rateable hereditament to the “host” property. The site is a new hereditament and should not be a split from the host hereditament.
The rateable value for the WiFi/Bluetooth hereditament is £100. This is irrespective of the number of pieces of WiFi/Bluetooth equipment within a single host property.
1. Co-ordination Arrangements
This is a Group National Scheme Class. Responsibility for implementing the scheme as set out within this Practice Note lies with the Group, as does responsibility for ensuring effective co-ordination.
For further information see Rating Manual Section 6 Part 1: Co-ordination Practice Note 1: 2010 Co-ordination Revaluation
The R2010 Special Category Code 066 should be used and as a Group Class the appropriate suffix letter is G. The Primary Description Code is to be MT1 and a standard description of “Communication Station (and Premises)” applied as appropriate. This standard description is suitable for both green-field mast sites and aerial sites on rooftops or water towers etc.
A description of “Communication and Traffic Monitoring Station (and Premises)” should be used for Traffic Master, Serco and any similar traffic monitoring sites.
The Group Mast Co-ordinator should be used as the initial point of contact in the event of any complex issues arising. For matters of policy or urgent and unresolved issues, queries should be e-mailed to the Mast Advice inbox for advice from the Telecoms Team at CEO.
2.0 Introduction
This Class encompasses all strands of the Telecommunications and Broadcast Industry. The thee main areas are;
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Mobile & Telecommunication operators
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Emergency Services
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T.V / Radio Signal Broadcasters
Each site can be considered as a “Communication Station (and Premises)” and should be valued in accordance with the instructions set out below.
From the commencement of the Communications Act 2003, the telecommunications and broadcast industry is regulated by Ofcom (Office of Communications) [Ofcom Homepage]
The telecommunications and broadcast industry continue to develop at a pace with the advent of digital TV, WiFi and WiMAX and increased use of 3G mobile services and mobile broadband.
2.1 Mobile Telecommunication Operators
Mobile Phone services were initially for the provision of mobile telephone “voice” communication. The industry rapidly developed from voice to include SMS (Short Message Service - text), 2G services and now provides additional 3G Multimedia services (MMS) such as “Photos”, “Video”, “E-mail”, and “Internet” through hand held sets/mobile phones and mobile connections through lap tops (Dongles). Data from Ofcom indicates that the number of 3G subscriptions grew by 60% during 2007 and by the end of 2007 17% of mobile users were using 3G compared to 11% a year previously.
There are five main cellular mobile phone network operators:
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O2: The name of the company is MM02 but it is marketed as “O2”. O2 is currently owned by Telefonica S.A. of Spain. (O2 also own 50% of Tesco Mobile). O2 was previously a BT subsidiary and known as BT Cellnet and Cellnet.
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Vodafone:
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Orange: Currently owned by France Telecom
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T-Mobile: T-Mobile is currently owned by Deutsche Telekom AG.T-Mobile evolved out of a former C&WC subsidiary operating as Mercury Personal Communications Ltd and Mercury One-2-One. Re-branded in 2002 as “One-2-One”.
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3: Or Hutchison 3G (H3G). 3 are now entirely owned by Hutchison Whampoa, previously being a joint venture between Hutchison Whampoa, NTT DoCoMo and KPN Mobile.
There are a number of virtual mobile operators such as Virgin and Tesco Mobile, who do not have their own networks but use wholesale services over the existing operator’s networks.
Five 3G (Third Generation) Licences were auctioned in 2000 for £22.4 billion. A condition of the 3G licences was to provide 80% 3G-network coverage by 2007. By May 2008 Ofcom confirmed that all licences had complied with the target.
Micro Cells have been used to infill poor reception areas, particularly in Urban areas, leading to the prevalence of smaller slimmer “Street Work” type structures rather than the older conventional towers. In sensitive locations Cells are increasingly being disguised in a more sophisticated manner, such as behind fake facades/ chimneys, mock telegraph and flag poles, grain silos, realistic looking pine trees and lopped trees with no branches.
Details of the Planning policy can be found within the Communities and Local Government Web Site (Planning Policy Guidance 8) [Planning Policy Guidance 8: Telecommunications - Planning, building and the environment - Communities and Local Government] In normal circumstances Planning Permission is not required under the Town and Country Planning (General Permitted Development) (Amendment) (England) Order 2001, provided “prior approval” has been sought for mast of less than 15 metres height with cabins of less than 90 cubic metres in volume. There are exceptions in special areas, such as conservation areas, where full planning consent is required.
Some cell sites are little more than an aerial attached to a small box of electronic equipment affixed to either internal/external walls or on roofs of buildings. These are often referred to as “Pico Cells”. It should be noted that Pico Cells are considered to be sufficient occupations of land to form separate rateable hereditaments. Any requests for deletions must be referred to CEO via “Mast Advice” before taking any action.
For the last few years there have been suggestions that operators could integrate mobile network systems or “ RAN” (Radio Access Networks) by sharing infrastructure and aerials. Due to market developments and increasing costs this has now become more attractive to operators. In April 2008 MBNL (Mobile Broadband Network Limited) was formed as a joint venture company by T-Mobile and Hutchison 3 UK to combine their 3G access networks. Orange and Vodafone were also proposing a similar infrastructure sharing but this appears to have not been taken forward or implemented. As RAN is still in its pre-implementation stage, the impact of RAN on rental value or in changes to the drafting of new or existing leases has yet to be seen. CEO is carefully monitoring this situation and further advice will be issued on its effect on rent in due course.
2.2 Emergency Services Network
This network is a separate mobile radio network specifically designed for the emergency services and is provided by Airwave, originally set up by BT and operated by O2.
Airwave is owned by Guardian Digital Communications, a new company owned by Macquarie Investment Funds. Previously Airwaves was known as Airwave O2. Airwave must not be assumed to be reflected in part of any O2 occupation. Consequently Airwave and its clients should always have an identifiable value (if occupying as a sharer) within a host assessment.
The Airwave network provides voice and data solutions to a variety of emergency services and public safety organisations, such as; Police, Ambulance and Fire Authorities; sections of British Transport Police and Criminal Investigation and Detection teams of HMRC it functions by utilising as system known as TETRA, which uses relatively low radio frequency (400MHz) and therefore the range from each site is greater than standard mobile operators sites (hence its attractiveness for emergency services).
2.3 Broadcast Sites (Radio and TV)
Traditionally these are the taller, larger and more established former BBC and IBA broadcasting (TV and Radio) sites. These sites were transferred in the1990’s into private ownership. In 1996 NTL acquired the IBA Transmission operation for approximately £235 millions. Crown Castle acquired the BBC and Home Service Sites for approximately 179 million pounds in 1997. National Grid (Transco) subsequently acquired Crown Castle in 2004 for approximately £1.1 bn. The following year NTL Broadcast was purchased by Australia’s Macquarie Communications Infrastructure Group for £1.27 bn, the newly formed corporation was branded as Arqiva.
In March 2008 the UK Completion Commissioner approved the provisional merger of Arqiva and National Grid Wireless. On the 1 September 2008 the Completion Commission concluded that the integration of the two organisations could begin. The two estates are currently operating independently to each other.
The Broadcast sector is seeing a rapid “transformation” from Analogue to Digital broadcasting. With many of the larger sites undergoing re-engineering works to accommodate the new IT. The switch over is planned to be fully completed by 2012. The timetable and Regional Maps are provided in the Appendices (Appendix A1 and A 2).
As a consequence, many of these sites will be undergoing a series of MCCs [RM [Material Change of Circumstances]9#)]. Accordingly Groups should monitor these sites and issue FOR 6065 (requesting details of Building Costs where appropriate) accompanied by a covering letter. Further advice can be obtained via “Mast Advice”.
In the event of a request for allowances due to the re-engineering works, a full internal inspection should be carried out. Detailed site inspection notes/plans and photographs must be clearly dated and retained. Superfluity allowances must be justified with an internal inspection of the relevant building or structure. Where a second mast is built and the aerials are transferred over a period of time with the intention of demolishing the first mast, it is acceptable to include the cost of the new mast only in the valuation. There must be a genuine intention to remove the first mast and this should be obtained in writing from the operator.
3. Over View of Market
i) Mobile Telephony
Information from Ofcom’s report “The Communications Market 2008” published on 14 August 2008 as at end of 2007:
74 million mobile connections serving a population of 60 million*·
Total UK mobile retail revenues £15.1bn*·
Total UK mobile connections increased by 48% in five years from 2002. *·
3G connections increased by 60% in 2007 to reach 12.5 million, amounting to 17% of all mobile connections.·
There were over 500k new mobile broadband connections (via USB modems or Dongles) in the 5 months from February 2008. The subscriber base is relatively low but it is growing fast.
59 billion text (SMS) messages were sent in 2007, up 28% from 2006.
O2 remained the largest network operator during 2007 with 20 million active subscriptions. Vodafone had the strongest subscription growth at 12%. *
In April 2007 Ofcom reduced the maximum time within which mobile phone operators are required to transfer a number from five to two days when users switch providers. *
Total mobile revenue across the four mobile operators declined by 1.4% in Q4 2007 compared to the previous quarter due to a fall in revenue and other charges. *
*Excludes data from H3G.
There is an increasing trend of the older analogue and 2G sites being upgraded to carry 3G equipment. Many of the original leases have reached renewal; particularly regarding those sites over 26 metres in height. It is believed that a significant number of lease renewals are still outstanding. However, whilst landlords are seeking to benefit from growth in the market, the operators are endeavouring to limit increases and implement deeds of variation to take into account the current cost cutting climate.
ii) Emergency Services Network
Following the migration onto the Airwave (TETRA) network, a number of emergency service providers are seeking to dispose of their freeholds (in many instances subject to long leases for the TETRA network). It is understood that these sites are being acquired by the other Telecoms Operators.
iii) Broadcast Sites (Radio and TV)
There is continued growth in Digital TV penetration, which has reached over 87% of the UK, primarily due to growth in the take up of digital terrestrial television. DAB or Digital Audio Broadcasting had expanded across providers both in private sector (Digital One) and public sector, namely the BBC; with respectively 133 and 105 transmitters. Although the sale of DAB digital radio sets passed the 8 Million mark in June 2008 it should be noted that 2008 also saw the closure of a number of purely digital broadcast radio stations.
In February 2007 BBC Radio and National Grid Wireless announced a trial of a new transmission technology to assess the practicality of digital radio services in the medium-wave bands. The trial, which will lasted for a year, was centred on Plymouth. This technology known as DRM (Digital Radio Mondiale) was designed to be the successor to analogue short wave broadcasts. The results have been mixed and announcement is currently awaited.
4. IT Valuation Support
All Scat 066 valuations must be carried out within the 2010 Non Bulk Server Mast Application, more commonly known as MAV application. Guidance on the use of the MAV application is found by clicking on the help button then selecting the instructions from the drop menu. All mandatory fields in MAV must be completed.
It is accepted that on large broadcast and mast farm sites the MAV application does not provide sufficient line entries for the buildings and P & M elements. In the circumstances you are advised to use the generic Contractor’s Basis spreadsheet on the non-bulk server for the detailed valuation. However, the summary details must be recorded on the MAV application, as this is where all Summary Valuations are generated.
5. Unit of Assessment
The Non-Domestic Rating (Telecommunications Apparatus) (England) Regulations 2000, (SI 2000 No. 2421) came into effect on 1 October 2000 with the aim of allowing the aggregation of all site sharers into a single hereditament, with the principal site operator or “host” being responsible for rates. Telecommunications apparatus of Central Rating List occupiers, who are not the host, is treated as “excepted apparatus” and excluded from the aggregation. It should be noted that the existence of central list site sharers will qualify the site as a shared site under SI 2421 and the Host should be assessed as in rateable occupation even though no value should be added to the Host valuation for central list sharers. (See section 7 below for more details on Central List).
The Non-Domestic Rating (Telecommunications Apparatus) (Wales) Regulations 2000, (SI 2000 No. 3383) came into effect from a later date on 1 April 2001 in respect of the 2000 local rating lists in Wales and although worded slightly differently, it mirrors the English regulations.
Both the English and Welsh Host regulations will apply for the 2010 rating lists. The Host regulations will only apply to shared sites and not to sites occupied by a single operator, even if the landlord is a host site provider.
A single operator site should be assessed to that operator not to the landlord. This approach should be followed even if the landlord is a site provider such as Arqiva or NGW, providing they do not broadcast or transmit from the site themselves. If subsequently a sharer moves onto the site or the landlord/host begins broadcasting or transmitting himself, the status changes to a shared site, the Host regulations will now apply and the site provider becomes the rateable occupier of the shared site.
These regulations are not intended to make a land owner or landlord, who is not in the telecoms business, responsible for the rates liability where he is in occupation of land, buildings or structures for purposes other than telecommunications. An example might be a Hospital, School, Water Tower or a farmer’s field, on which space is let to a telecommunications operator or telecommunications site provider. The regulations achieve this by: a. Specifically applying to a “telecommunications hereditament”, which is defined as a site forming a hereditament occupied exclusively by telecommunications apparatus of either a single operator or more than one operator and b. Not applying the aggregation where the telecommunications hereditament is on or forms part of a structure occupied by the host for any purpose other than the provision of or operation of a site for telecommunications apparatus.
The exclusive test disregards the presence of ancillary accommodation used for the normal operation of a telecoms site, which may correctly form part of the principal telecoms hereditament. It should also be noted that an exclusive telecommunications hereditament means a broadcast or mobile (wireless telegraphy) telecommunications hereditament, not a BT fixed line telephone exchange, which should, if a rooftop installation, be treated as any other building roof top assessment as set out in paragraph below.
In the case of, for example, a water tower occupied by Water Company, which lets space on the water tower under separate agreements to one or more mobile phone operators, the water tower is the Principal hereditament but is not occupied exclusively by telecommunications apparatus and is not a broadcast or mobile telecommunications hereditament.
In these circumstances, the provisions of SI2421 are not satisfied and each mobile phone operator will have a separately rateable telecommunication hereditament as before. The same would apply to the roof of a building where each operator has a separate agreement with a building owner and there is no Principal telecommunications hereditament. However, if the building owner lets the entire rooftop to a telecommunications site provider and the site provider sublets that area to individual operators as site shares, then the site provider will occupy a Principal telecommunications hereditament and all the site sharers will be aggregated into the site provider’s host telecommunications hereditament. It must be remembered that there must be more than one operator sharing the site for a HOST assessment to be created.
On a shared site, it is important in the first instance to identify the “principal telecommunications hereditament” and the host or main operator who occupies the principal telecommunications hereditament, as they will be the rateable occupier of the whole telecom site, including the site sharers. A HOST is defined as – “individual who has the right to receive payment in respect of the use of any part of the site by any other who is an operator occupying telecommunications apparatus, or would have such a right if any such part were so used”. Basically this means that the telecom site provider or operator who receives the site share payments, or who would be entitled to receive the payments, will be the ratepayer for the whole telecoms hereditament.
The next stage is to ascertain whether any telecommunication apparatus on the principal hereditament, other than the host’s, is occupied by a Central Rating List “Designated Person” and is therefore “excepted apparatus”.
The Central List site sharers will need to be excluded from the aggregation to the host hereditament under the provisions of the regulations, as they are deemed reflected in the relevant central list hereditaments. No account should be taken of the Central List site sharers when considering the valuation of the host site. This principle should be applied irrespective of whether or not the Central List telecoms apparatus at the host site is capable of forming a separate hereditament from the host. A “flowchart” can be accessed in Appendix A to assist in the determination of the correct Unit of Assessment.
If there is any doubt as to the correct unit of assessment or interpretation of the regulations, advice should be sought from “Mast Advice”
6. Central Rating Lists
Details of central list occupiers are set out in Rating Manual - Section 2 Part 2. It should be noted that the “Designated Person” named in the regulations may not be the current “Designated Person” where the company has been taken over or changed their trading name. For example, “Racal Telecommunications Ltd” are named in SI 2000 No. 525 but were purchased by “Global Crossing (UK) Telecommunications Ltd” who became the new “Designated Person” from January 2000.
In the case of the Host of the mast being a central list occupier there are two possible situations:
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mast is a remote stand-alone site: In these circumstances the sharers are merged into the Host assessment and included in their central list assessment. An example would be a Transco mast used for operational purposes and exclusively for the purposes’ of telecommunications. SI2421 would apply and all sharers would be included in the Transco Central List assessment.
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mast is part of a larger non-telecoms hereditament: For example; the corner of a reservoir, gas hereditament or electrical sub station site. In these circumstances the Host regulations do not apply, as the site is not exclusively telecommunications. The sharers should be separately assessed if they have their own exclusive room or cabin. If they share non-exclusive accommodation with the central list host they are included in the central list assessment as there will be no separately identifiable hereditament.
CEO Telecommunications Team and the Utilities Rating Team (URT) deal with central list assessments. All queries on the local list/ central list boundary should be referred to CEO via the “Mast Advice” inbox under the heading Central/Local List.
The Central List host site will form part of the occupier’s central rating list assessment, provided that the site is not an “excepted hereditament” as defined in Part III of the Central Rating Lists (England) Regulations 2000, SI 2000 No. 525.
Where a central list designated person is a site sharer, the sharer is treated as “excepted apparatus” and therefore should not be included with the host hereditament. This also applies to a designated person who shares a site with another designated person who is the host of the principal telecommunications hereditament. However, the presence of central list site sharer will be used in determining if the site is a shared site or a single operator site when identifying if there is a Host situation.
Details of any separately assessed site sharers to be merged into a central rating list host hereditament, including non-central list site sharers, and details of any excepted apparatus in respect of any host site, including non-central list host sites, should be sent to “Mast Advice”.
7. Identification of Sites
7.1 Address Standardisation Protocols
When bringing in new assessments the address standardisation protocols should be followed. These protocols have been agreed with the industry to improve the accuracy of the rating list and to assist in data integrity issues i.e. auto matching centrally supplied rental information.
All entries shown in the list a should have the following information within the address:
• Site Cell Ref – This is combination of alpha; numeric or both depending on operator; • Operator Name – This will be either the name of the operator on a single operator site or the Host on a shared site. In creating the address the following is provided for guidance: • O2 – Note this is a letter not the number 0; • Hutchison - is sufficient not 3 or Hutchison 3G; • Vodafone – note the spelling, no “ph” in the name; • T-Mobile; • Orange; • Arqiva; • NGW – This is an acceptable abbreviation for National Grid Wireless. • Street Name; • Post Code – This should be the one recognised by the operator and supplied to the local Planning Authority on the rollout plans; • Rural Sites – It is suggested that the Ordnance Survey map reference is used in the “No Name” field. There is a .pdf attachment in Appendix C of the manual that explains the creation of OS reference numbers.
Examples of the address standardisation protocols are shown on this link address protocols
7.3 Billing Authority References
All existing and new entries in the MAV application should contain the correct Billing Authority reference. It is necessary for the BA reference number to be inputted in order for any record within MAV to be saved. Prior to commencing any assessment casework with MAV a new BA reference number must be obtained from the BA. It is vital that the BA reference number is correct on all entries in MAV and it is of paramount importance that those flagged with a CLA (Current Live Assessment) have the appropriate reference number as this will be used in the auto matching centrally supplied rental information.
8.0 Information required prior to bringing in a SCAT 066 assessment into the list or making an amendment, including requests for deletions.
Care needs to be taken to ascertain the facts at the material date. If in any doubt the caseworker should contact the operator/agent (followed up in writing) to confirm the following facts:
a. Date first Occupied
b. Date when capable of Beneficial Occupation
c. Date when sharers went on to site (This is an MCC in its own right)
d. Rental information if NOT ALREADY PROVIDED
In cases where requests for deletions are received these should be confirmed with a site inspection and photos taken prior to the assessment being deleted if appropriate. In instances where it is apparent the site is still operational or capable of beneficial occupation, the agent/appellant must be contacted at the earliest date and requested to clarify the grounds of his request/proposal. Walking away or switching off a site is insufficient to justify a deletion.
8.1 Available Rental Information
As at March 2008 the following operators provided an electronic rent return;
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Airwaves
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O2
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T-Mobile
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NGW
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Arqiva
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Vodafone
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HG3
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Orange
These returns are contained within the P Drive at
A number of Operators have also included returns on significant numbers of un-assessed sites and all operators have included sites on which they are sharers.
Where possible this data has been automatically entered into the MAV application however there may be instances where the data has not been recorded due to data matching problems. It should be noted that where a match has been possible, the lease/licence details relate to the host and not the sharers. In instances where caseworkers believe the site is shared (such as roof top sites) the sharers electronic returns should be examined also to glean details such as site payments and dates of occupation. In the case of missing rental data on MAV, if a manual match has been made with the electronic return, the lease details should be entered on MAV manually.
8.2 Issue of FOR VO6050 “Mast” Rent Returns
No Forms of Return (FOR) VO 6050’s are to be issued to Arqiva, National Grid Wireless (NGW) O2, Orange, Vodafone, 3 (Hutchison 3G) or T-Mobile in connection with the 2010 Revaluation without checking for the sites presence on the Electronic Rental Data as described in 8.1 above. If the site is not listed in the electronic return, a VO6050 can be issued. VO6050’s should not be sent for any “Streetwork” sites. There is a presumption against the issue of individual FOR’s except for special cases and for occupiers other than those listed above.
It has been agreed centrally with the operators who have provided electronic returns to request an updated return for new sites on an annual basis. A schedule of new sites should be collated by the Group Mast coordinator and returned to the Telecoms Team via Mast Advice (per individual operator) on a 3 monthly basis. The Telecoms Team will then forward the request on to the individual operators and monitor replies. If information is not returned within a reasonable period of time of 56 days you will be advised to issue individual rent returns (VO6050).
8.3 Issue of FOR VO 6065 “Building Cost “ Rent Returns
It is the aim to agree the majority of the cost relating to SCAT 066 prior to the publication of the 2010 rating list. However it is accepted that the Cost Guide will be unable to cover the more unusual or larger types of mast structures. Typical unusual sites will be “Tree Masts”, “Concealed Masts” and masts built on flood plains “Raised Platform Structures” for example. In instances where these occur, Groups are instructed to issue a VO 6065 and request full costing on any new structures.
Groups are requested to notify the Telecoms Team via “Mast Advice” of any unusual types of structures and any new masts or towers constructed since 2007.
9. Inputting of Rental Data
9.1 Recording of Electronic Rental Data
Where data matching has been possible, the returned (March 2008) Electronic Rental Data has been inputted on to MAV by MSG. This information is shown as being the latest FOR and will be displayed on the summary export sheets (where selected).
9.2 Inputting of subsequent rental data
It is the responsibility of Groups to input any data received either by formal FOR’s or hearsay evidence into the MAV application in a timely manner. FORs should be recorded on RSA on day of receipt and details inputted within 3 working days; likewise rental data should be inputted into MAV within 3 working days of receipt. It is important that where a FOR has been returned, RSA is noted that full details can be found in the MAV application. Guidance on in putting of data can be found in Appendix D
10. Recording Occupiers of Telecommunication Stations and Premises
The Telecommunications Industry is undergoing significant changes and it is important that all MCCs are accurately recorded on MAV. This not only relates to the Unit of Assessment and the Host but also sharers details.
10.1 Minor sharers
It is important to differentiate between Major and Minor Sharers, as only Major sharers will be subject to an additional rental value. It has been agreed with the industry for the 2010 list that as a general rule of thumb, a Minor Sharer will be any NON MOBILEPHONE/TELECOMS occupier who pays an annual site share payment of less than £3500 to the host at the AVD. Regard should be given to the type of site sharer and not just to the site sharer payment cut off. A taxi firm would normally be regarded as a minor site sharer but a telecom or emergency services company would not.
Details of Minor Sharers should be recorded in the Valuation Notes section within MAV. Advice on minor/major site sharers can be obtained through “Mast Advice”.
10.2 Major Sharers
Major sharers details should be recorded within MAV as set out in Appendix F
10.3 Reciprocity
Most of the old BBC and IBA broadcast sites are either freehold or occupied under old lease agreements. The old agreements allowed the two Broadcast Operators, the BBC and ITV to broadcast from each other’s sites for no extra rent or site sharing payments, save for running costs. It is believed that under the reciprocal agreement, the BBC and IBA did not charge each other site share payments. It is understood only to have applied to the following public sector channels BBC1, BBC 2, S4C and only one private channel ITV 1. This “Reciprocity” agreement was put on a more formal basis in 1991. However, further research is required on the effect of the “Reciprocity agreement” on open market rental value as at the AVD.
All other terrestrial TV channels and commercial radio stations should be treated as individual major site sharers.
11. 2010 Mast Working Party
The Mast Working Party (MWP) was initially created in May 1998 for the 2000 rating list and consisted of representatives of the VOA, the industry and their advisors. The MWP reconvened for the 2005 list to agree costs and a National Scheme for masts in excess of 26 metres height.
For 2010, the MWP has met with the intention of producing and pre-agreeing a National Scheme for all Telecommunication Stations and Premises, save for Roof Top sites outside the M25, before the 2010 compilation date. The VOA has discussed its proposals with the industry and their rating advisors.
The Valuation methodology from 2005 remains consistent for 2010 and the valuation guidance is set out below.
12. Valuation Guidance
The valuation methodology can be split into three components:
a. Buildings & Rateable Plant and Machinery;
b. Site Base rent; and
c. Site sharing – Payaway Rent.
The method of valuation is primarily a rental basis for the site with a contractor’s basis addition to reflect the added value of site development, (buildings, rateable plant and machinery) which are not included in the site rent. The rental value of the site is enhanced by the presence of site sharers. Sometimes, particularly on older leases, site sharers are already reflected in the main site rent, or more commonly there is an additional rental charge for each sharer, aerial or dish paid to the landlord, this is known as the “Payaway”. This will depend on the terms of the actual agreement. Payaways are usually based on a percentage of the site share payment made by the equipment operator to the Host site operator, typically 25 %- 35% on a Greenfield site but can exceed 60% on Rooftop Sites or they are on a fixed amount for each aerial or dish based on a rate card. Payaways should not be confused with the site share payment made by the operator to the Host, as these payments are considered not to be directly rents. Site share payments often include service and management fees for example.
There are basically three types of mast occupier;
Type 1: Single operator sites where the occupier broadcasts or transmits telecommunication signals as part of his own business or for his own purposes with no site sharers;
Type 2: A site provider who is in the business of developing a telecommunications site and letting space to other operators and site sharers as his main business but who does not broadcast or transmit signals for his own purposes;
Type 3: A type 1 occupier who is also a site provider, or type 2 occupier and transmits signals for his own purposes as well as attracting site sharers onto his telecommunications site.
The distinction between type 2 and type 3 should be reflected in the respective valuations: a type 3 occupied site has a more intensive use with the valuation reflecting the occupier’s own use as well as that of additional site sharer’s. In comparison, a type 2-site operator does not benefit from his own equipment on the site, only from attracting other operators as sharers. This distinction can be reflected by the adjustment of the site rent of a type 2 occupied site downwards where the evidence supports this, if the rental evidence has been taken from a type 3 occupied site.
It is suggested that in the case of a type 2 site, the first major equipment occupier or site sharer is reflected in the base site rent and additions are only made for subsequent sharers.
There will be no site share value in a type 1 occupied site, and the site rent should reflect this where appropriate and be taken from similarly occupied sites.
In some cases the replacement of the existing mast with a more substantial structure would be required to facilitate site sharing and may lead to re-negotiation of the rental agreement.
13. Buildings & Rateable Plant and Machinery or Contractor’s element
This is the contractor’s basis addition to the rent of the undeveloped site. Further guidance on Contractors Basis valuations can be found in RM The Contractor’s Basis of Valuation. In all instances the site should be valued according to the Physical details present at the Material Date, hence the importance to record site details, the date and notes and photographs accurately as sites do change. It is recommended that an OS plan be retained on file, annotated to record details and to include safe access routes for sites in rural areas.
The contractor’s addition is based upon the cost of construction, decapitalised at the statutory decapitalisation rate, which for the 2010 list is *tba% It includes buildings, cabins, cabinets etc, the masts structure itself, rateable cabling, any stand-by generator sets, back-up batteries and associated equipment, electrical distribution boards (larger sites), fencing, hard standings which are not included within other costs (masts and cabins are normally costed to include the concrete bases), gates, cable trays and other supporting steelwork, etc. Any queries as to the rateability of items of P& M should be e-mailed to “Mast advice”. (More detailed guidance is contained in RM Plant & Machinery.
Air conditioning plant found at telecommunications sites is normally only rateable when found in offices at the larger sites. Elsewhere, its primary function is the cooling of non-rateable items of plant & machinery, such as switching and transmission equipment. In such cases it will be non-rateable as process plant and machinery.
Rooftop installations will sometimes have equipment housed in a room within the building to which the antennae are attached by cables. It should be established if the internal equipment room is included in the rooftop site rent or otherwise. If adopting the actual roof top site rent, ensure that the rent does not already reflect the accommodation, if making an addition for equipment rooms, as this will be double counting.
Plans and details of rooftop installations should be requested from the operators as in most cases inspections will not be possible. For health and safety reasons, referencing of roof top sites should not be undertaken but photographs can be taken from a suitable, safe vantage point e.g. access doorway on roof.
The Plant and Machinery cost element for a typical single operator roof top site should be taken for 2010 as £30,000 ERC per operator (typically three corner arrays (or 5.0 Metre Stub Mast). This includes cabinets and cabling) however Cabins should be added separately. Where rooms are occupied an addition to the “base” rooftop site rent will be required, if the room is not already reflected in the rent.
Caseworkers will not be required to enter individual costs on Reval 2010 cases generated from the 2005 MAV application. The 2010 MAV application includes a comprehensive look up table, which also interpolates cost where necessary. The look up table will automatically enter the new 2010 cost details, providing the correct 2005 list code was entered on the Current Live Assessment (CLA) in MAV on the 2005 list. Exceptional items will require codes/costs to be entered manually. New 2010 cases will require full 2010 cost guide references. As the 2010 codes have to be unique, the 2005 code will not always be the same code as the 2010 code. However, the look up table will convert any old codes to the new 2010 codes as appropriate. Any errors found should be sent to “Mast Advice”.
13.1 Allowances
Age and Obsolescence allowances must not be given automatically as of a right but should be considered on the merits and facts of each case. The individual circumstance must be examined, per Guidance Notes and Common Adjustments contained in the 2010 Cost Guide and the information set out below. As a rule of thumb, allowances on buildings and civils should be in line with the main CG.
It should be noted that any allowances applied for the 2005 list MAV valuations will not be automatically carried forward to the 2010 valuations. It is appropriate to consider if the allowance should be updated for the new AVD and notional dates established in the case of major refurbishments.
13.2 Obsolescence
Obsolescence will be more prevalent at older sites. Technology continues to advance at a pace resulting in smaller electronic components and lighter aerials and dishes. Any allowances for technical obsolescence should be judged against the technology that was widely available and in use at the AVD (2008). Claims that a modern replacement mast would be of a lighter or smaller design must be backed up by a full written report by a suitably qualified structural engineer and include evidence that the proposed modern replacement is actually being built in the locality at the AVD. A mere unsupported statement that a lighter structure would be adequate is insufficient proof that an allowance is justified. Some of the larger obsolete horn type aerials which can weigh up to two tonnes are often left in place but disconnected due to the high cost of removing them. The demand for site sharing and height of existing aerials should be taken into account when considering the modern equivalent. The Valuation Officer should be satisfied that a lesser modern construction is justified on the facts as appropriate.
At some sites an existing mast may become obsolete due to age or loading and a replacement is built adjacent to it. The aerials and dishes are then migrated, over time, onto the new mast with the intention of demolishing the old mast eventually. It is acceptable to consider an allowance on the old mast, providing it can be shown that the new mast has the structural capacity to accept all the aerials and dishes on the site without causing interference and the intention is to demolish the old mast and not to use it for additional site sharing capacity.
Smaller electronic components require less space within the buildings and cabins but again demand for space by site sharers or alternative storage use must be taken into account. Care must be taken with alleged obsolescence allowances, particularly as excess space is often used for storage purposes. If there is any dispute on excess space allowances, sometimes referred to as superfluity, then the site should be inspected and the actual area in use and not in use ascertained.
For the purposes of the 2010 rating list the following has been agreed:
Prefabricated Cabins – As a general rule of thumb, cabins found on mobile phone sites would require maximum area of 6.25 sq metres per operator. Caseworkers should note the actual size of the cabin during inspection and on the appropriate line within the valuation for future reference. This allowance should only be applied to single operator prefabricated cabins, similar to the Elliot cabins typically found on mobile sites and not to brick built cabins typically found on broadcast sites.
Where mobile operators share the cabin, the area required should be taken as the actual area, or (6.25 + 1.50) sq metres multiplied by the number of operators sharing the accommodation, whichever is the smaller. The +1.5 sq metres per operator, is to allow for the additional circulation space required over the standard 6.25 sq metres. This allowance does not apply at Broadcast sites, as the transmission equipment requires more space.
Brick/Stone Cabins – Typically these will be found on older mobile sites and sites used for broadcasting. Additionally they may be so constructed as part of the planning requirements – say in an area of outstanding natural beauty.
Caseworkers should not apply the same test as outlined in a) above. Instead they should internally inspect the site and determine the level of used accommodation. An allowance equal to 50% of the vacant space should be applied to the valuation.
e.g. A brick built cabin 16 sq metres. From internal inspection it has been determined that 4 sq metres is occupied.
Accordingly 50% of the vacant space is 16sqm – 4sqm = 12sqm unoccupied
Allowance @ 50% = 6 sqm to be valued at full rate
- 4 sqm in occupation
Total = 10 sqm at Full Rate
Therefore, it is suggested that within MAV, 10sqm are valued with the appropriate comment made in the remarks.
14. Base Site Rents
The following scales are based on January 2006 to March 2008 rents (where available), unless otherwise stated:
14.1 Outside M25 “Green Field Sites ”
Following discussions with the MWP it was agreed that the rents for Green Field sites should be analysed with the intention of producing a broad “National Valuation” scheme for areas Outside the M25. Rents were initially sifted and further refined to produce the following categories of typical Green Field sites: -
a. “Lampposts “ TYPE Sites - defined as poles from 8 Metres up to and including 12.1 Metres height.
b. All Monopoles and Towers - including Street Works sites and those with/without compounds from 12.2 Metres to 25.9 Metres height.
c. All Monopoles and Towers with compounds; 26 Metres to 35.9 Metres height
d. Guyed Masts and Towers with compounds; 36 Metres to 45.9 Metres height.
e. Guyed Masts and Towers with compounds; 46 Metres to 60.9 Metres height.
f. Guyed Masts and Towers with compounds; 61 Metres to 150.9 Metres height.
g. Guyed Masts and Towers with compounds; in excess of 151 Metres height.
h. Single Guyed Radiators all heights
i. Pair of Guyed Radiators all heights
j. Single and Paired Guyed Radiators with an additional structure (i.e. Pole/Tower) carrying sharers all heights.
k. Pico or Micro Cells where wall mounted on or in buildings or Kiosks Including; simple flag pole types on sides of buildings.
l. TV/Radio Repeater “ Broadcast” Sites only with no sharers on Greenfield Sites up to 45 Metres. Sites not suitable for sharing with mobile operators
14.2 Within M25 “Green Field Sites ”
The following broad categorise have been agreed for certain types of sites within the M25, based on the sifting of rental evidence;
London South and London North Groups: -
1) Pico or Micro Cells where wall mounted on or in buildings or Kiosks, including; simple flag pole types on sides of buildings.
2) TV/Radio Repeater “ Broadcast” Sites only with no sharers on Greenfield Sites up to 45 Metres. Sites not suitable for sharing with mobile operators.
**London Central former Westminster Group and City Group **
1) Pico or Micro Cells where wall mounted on or in buildings or Kiosks, including; simple flag pole types on sides of buildings.
14.3 Roof Top Sites
It has been agreed with the MWP that Rooftop sites will be valued within four categories across the Network with GROUPS to produce “Broad Valuation” schemes in respect of Rooftop sites by utilising delineated bands of value.
14.3.1Agreed Definition of Delineated Bands of Value
“A delineated band of rental values is based on the basket of evidence typical as at the AVD and pertinent to the Rooftop on which the hereditament sits in terms of area/situation/topography. In cases of hereditaments where the rent passing has been indexed by RPI or is OLD OMV or indeed OMV fixed post AVD these will be considered and weighted having regard to: -
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Rents passing in the immediate vicinity at AVD
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Planning Constraints prevailing in the area
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Market at Material Date.
14.3.2 Agreed Categories of Roof Top Sites
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Type 1 - To be considered on a individual basis as they fall outside the delineated bands Of value.
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Type 2 - Typically Prime and falls within a delineated band of value.
-
Type 3 - Typically Secondary and falls within a delineated band of value·
-
Type 4 - Typically Tertiary and falls within a delineated band of value.
This categorisation equally applies to Water Tower sites. Groups should categorise all Roof Top sites accordingly upon completion of 2010 analysis. It is the individual Groups (Outside M25) responsibility to produce their valuation schemes for Rooftops.
It should be borne in mind that: -
a. A comprehensive list of evidence will need to be produced and retained to support the scheme (RPI reviewed rents are not reliable).
b. A written scheme is to be produced and placed in the Group’s P Drive (appropriate folder) and within
a. The Revaluation Time Table and instructions must be complied with.
b. In instances of missing rental information, Groups must make reasonable assumptions and the instruction contained in Para 8.2 above must be followed.
15. Rental evidence
15.1 Overview
Each operator has supplied rental information, however in certain instances the information has not been comprehensive enough to produce detailed accurate analysis and this evidence has been weighted accordingly.
Available Rental evidence from new sites constructed between 1 January 2006 up to March 2008 has been considered to carry the most weight.
15.2 Green Field Sites Under 25.9 Metres Height
There were significant numbers (approximately 3,000) of sites below 25.9 Meters height, which provides a comprehensive over view of the Market between 2006 and 2007. It was noticeable that compared to rental schedules produced for the 2005 Lists, in the two years proceeding the AVD (2008) there are reduced numbers of new Green Field lettings. This supports the view of the Industry that the majority of the operators have an adequate numbers of existing Greenfield sites. Based on the evidence available, rental growth between the 2005 and 2010 lists AVD’s (2003 to 2008) appears to be limited.
It was evident there is a difference in rental values between the smaller “Lamppost” type masts less than 12.2 Metres Height and the remainder of sites under 25.9 Metres. It is accepted by the majority of the industry that this is as a consequence of height of the final structure and associated land take, not as a direct use of a specific cell type. The VOA’s analysis of Green Field site rents is based on mast height and not on Cell Types. Therefore for the 2010 list, Caseworkers are not to differentiate site rental between the classification of Macro and Micro Cells alone. From a detailed sample of sites less than 12.2 Metres in height, with Open Market Rents (OMV), the rents ranged from £1,750 to £3,000.
Having reviewed the available records it was inconclusive if there should be a differential in Base rental terms between sites with/ without a defined compounds and between Masts or Towers. Adopting a broad valuation approach it was agreed to include all available identifiable OMV rents of sites between 12.2 Metres Height and 25.9 Metres Height, including Macro and Micro cells. Within the sample of 186 rents there are annual rents ranging from £1,000 to £14,000; with averages for the various operators from £4,473 to £5,839.
15.3 Green Field Sites Over 26 Metres Height
Limited rental information exists for sites over 25.9 Metres in height, with the majority of sites held Freehold rather than rented. Within the size band 26 Metres to 35.9 Metres height there is demand from both Mobile Phone Operators and Broadcasters.
It is noticeable that over 26 Metres there are several Lease Renewals and Rent Reviews outstanding from 2006 onwards, additionally there have been no new lettings. Therefore the total sample of rents over 26 Metres is limited to 23 OMV rents. The majority of rents (12) relates to sites 26 Metres to 35.9 Metres Height which range from £5,000 to £15,000
A clear picture is difficult to formulate on these taller sites, as there remains the prominence of older style leases, which are fully inclusive of all shares, and these have had to be considered (see section on Payaways and Caps PN 16.0-17.0)
For sites between 36 Metres and 45.9 Metres height the sample size is 5 and the values range form £3,600 to £7,500. The sample size is reduced to 4 rents for sites 46 Metres to 60.9 Metres, with rents ranging from £3,000 to £32,000. The final sample size of 2 rents is available for sites 61 Metres to 150.9 Metres and range from £5,000 to £13,125. There is no current rental evidence within England on Wales on sites over 151 Metres height.
15.4 Guyed Radiators
These sites remain characterised by requiring relatively large acres of buffer land around the mast partly for safety reasons and also due to the splay of the stay anchor supports. The land is generally grazed. The sample size is very small and includes 3 rents for single Guyed Radiators (not limited to OMV) and range from £3,675 to a more recent agreement on a site adjacent to residential development at £13,000.
16.0 Site Sharing – Payaway Rent
A Payaway is the additional rent passed on to the landlord by the main site operator or Host in respect of site sharing by other operators. This is established practice in the calculation of rateable values on Telecommunication Stations and premises in England and Wales and follows market practice. However due to the variation in individual lease agreements rents may be expressed as being fully inclusive of sharers or only certain sharers are subject to a Payaway. It has been agreed with the MWP to analyse the evidence for 2010 to deliver an acceptable “broad valuation” of Green Field Payaways across the industry and not to differentiate for either Host Type of height of structure.
It has been accepted by the MWP that there is a difference in how Landlords perceive the value of Payaways and differentiate between Green Field and Roof Top Sites. For this reason there are different methodologies of value (analysis) and levels of value. ON NO ACCOUNT SHOULD THE GREEN FIELD SITE SHARE PAYAWAY BE ADOPTED AS BEING APPLICABLE TO ROOFTOP SITES.
16.1Green Field Site Share Payaway
Based on available evidence averages for Payaways (outside the M25) across the industry range from £1,635 to £2,555
16.2 Roof Top Site Share Payaway
As no new rental evidence is available at present a similar scheme to the 2005 list is to be followed based on 60% of the site share payment (outside the M25.) For methodology see Appendix E
17. CAPS of Greenfield Sites Base Values plus Site Share Payaways
The available rental information across the various size bands indicates that Caps should remain for the 2010 list outside of the M25 area. Consideration was made to those rents with fully inclusive rents and Base + Payaways. However, these inclusive agreements are becoming less common than the base rents + Payaway rents. The smaller the site the lower the Cap as sites is physically limited to the number of sharers that can be accommodated.
Please note that Caps do not apply on sites of more than one structure.
18. 2010 Valuation Scheme
On the evidence available the following scheme is proposed. Please click on following (appendix I & appendix J) In August 2008 a National Scheme for other sites has been put to the MWP for agreement but has not yet been confirmed as agreed.
19. Additional Information
Appendix have been attached which expand upon contents contained within the 2010 PN This Practice Note will be amended periodically to reflect developments in this class.
20. Enquiries
Any enquiries on this Practice Note should be directed to the Telecommunications Team, within CEO Rating Directorate. In the first instance this should be done in conjunction with the Group Mast Coordinator via email to “Mast Advice” using the subject box for the purpose of the query.
1. Appendix A
Summary: Unit of Assessment Guide post SI 2421 England (1 October 2000) & SI 3383 Wales (1 April 2001)
Flowchart for SI 2421 / 3383
Click here to view the Flowchart
2. Appendix B
Summary: Address Standardisation and Ordnance Survey Work Aid on creating OS Reference Numbers
Address Standardisation and Ordnance Survey reference numbers work aid
a. This appendix has links to assist caseworkers in the correct approach in creating addresses in accordance with the agencies revised Standardisation. As an additional aid a copy of the Ordnance Survey – how to create a reference is also attached for assistance.
b. Address Standardisation Use this link to access examples of the correct approach in creating address for this category of property.
c. Ordnance Survey – Reference Numbers This link will take you to a work aid designed to help you understand how an OS Reference Number is composed.
3. Appendix C
Summary: Information required for recording of Site Details
3.1 Mast Inspection Check List
3.2 Identification of Lamp Post Types and Street Work Type Poles Link to SCAT 066 Lamppost and Street Works identification Guide
3.3 Best Practice Guidance
3.4 Identification of Pico Cells. Pico Cells are often difficult to identify out on site due to their size and the tendency to be utilised within covered areas. Often they are concealed behind shop fascias or Petrol Filling Station Signs. It is important they are recorded, as Pico Cells correctly as there is a significant difference in rental values attributable under the 2010 scheme. It is suggested where sites have been identified solely by using Ofcom’s Site Finder that caseworkers have regard to individual the cell details. In the majority of instances where the antennae is shown as being under 3metres height, this would suggest that the cell is wall mounted rather than upon a Green Field or Rooftop Site. The Wattage output also provided guidance and in particular typical Pico Cells have an output between 10 dbw and 7.5 dbw. For the 2010 Revaluation the cost Guide Code applicable for all Pico Cells is 86PU01. The value of the Rateable P& M will be automatically calculated.
4. Appendix D
Summary: Action required upon receipt of FOR VO6050 Where VO 6050
FOR’s have been returned The Data Capture Team should immediately forward a scanned copy to the caseworker that requested its issue. Within 2 Days of receipt they should satisfy themselves as to the quality of information returned and inform the Data Capture Team that the FOR can be accepted as being complete. Data Capture will then record the details on RSA. The caseworker should record the details within the MAV application utilising input screen regardless of if the site is Freehold or Leasehold. In instances where the site is Freehold or Leasehold where sharers are present the Gross amount returned for the Site Share Payaway should be input in Part 14 .1 as follows:
-
Let or Sublet all or Part of the Property - Y
-
Number of Subletting - Total Number of Sharers
-
Total Annual Rent from Sub lettings - Total Gross amount of Site Share Payaway The remarks box is to marked Telecoms Site FOR type 6050 – Full details see entry on MAV application
It is essential that the date be then input into the Non Bulk Server Communication Masts application now known as MAV.
The data on the Returned VO6050 can be directly input into TAB 4 ~ FOR Data. The input boxes mirror the questions contained in the Telecommunication Masts and Stations Form of Return.
Telecommunication Masts and Stations Form of Return
Non Bulk Server Communications Mast Application (MAV) - Tab 4 - FOR Data
5. Appendix E
Summary: Worked Example of Shared Rooftop Site – Assumed Rooftop Type Category 2
Appendix E Image 1 - Worked Example of Shared Rooftop Site – Assumed Rooftop Type Category 2
Appendix E Image 2 - Worked Example of Shared Rooftop Site – Assumed Rooftop Type Category 2
6. Appendix F
Summary Worked example of Shared Green Field Site – Major and Minor Sharers
Appendix F Image 1 - Worked example of Shared Green Field Site – Major and Minor Sharers
Appendix F Image 2 - Worked example of Shared Green Field Site – Major and Minor Sharers
7. Appendix G
Summary – Digital Switch Over
7.1 Time Table for Digital Switch Over
Region | Switchover happens in |
Border | 2008 - 09 |
West Country, Granada | 2009 |
Wales | 2009 - 10 |
West, STV North | 2010 - 11 |
STV Central | 2010 - 11 |
Central, Yorkshire, Anglia | 2011 |
Meridian, London | 2012 |
Tyne Tees, Ulster | 2012 |
7.2 Digital Switch Over – Regional Map
8. Appendix H
Summary: Correspondence address for T-Mobile and 3
Mast Contact Details 2010 List
9. Appendix I
Summary: 2010 Valuation Scheme SCAT 066
9.1 Green Fields Outside Of M25
TYPE | HEIGHT | BASE RENT | CAP |
Lamp Post | 8m -12.1m | £2,500 | N/A |
Lampposts, Monopoles and Towers INCLUDING Streetworks and those with and without compound | 12.2m - 25.9m | £4,500 | N/A |
All Monopoles and Towers WITH and WITHOUT compound | 26m – 35.9m | £5,500 | £16,750 (5 Major sharers) |
Towers/Guyed Masts | 36m – 45.9m | £7,000 | £20,500 (6 Major sharers) |
Towers/Guyed Masts | 46m – 60.9m | £8,750 | £23,540 (7 Major sharers) |
Towers/Guyed Masts | 61m –150.9m | £9,000 | £27,000 (8 Major sharers) |
Towers/Guyed Masts | 151+ m | All in £27,000 | |
Single Guyed Radiators | All Heights | £7,500 | N/A |
Paired Guyed Radiators | All Heights | £11,250 (Not agreed under working party) | |
Single & Paired Guyed Radiator with Monopole or Tower | All Heights | Value as a pair Guyed Radiator +25% of appropriate value attached to monopole/tower If single +50% of appropriate value attached to monopole/tower | N/A (Not agreed under working party) |
Traffic Master | All sites | £140 all inclusive of P&M | £140 |
Minor Sharer = any Non Mobile Occupier making payment to host at AVD of or equal to | £3,500 | ||
GREENFIELD PAYAWAY | £2,250 | ||
Pico or Micro Cells where wall mounted on or in buildings /kiosks (including flag pole types on sides of buildings and forecourts) | £2,250 | N/A | |
TV Repeater Stations “Broadcast Mast” with No sharers on Greenfield sites up to 45 M | £2,250 | N/A |
9.2 Summary 2010 Valuation Scheme SCAT 066
Rooftops Outside Of M25
TYPE/HEIGHT | Roof Top sites these are categorized in terms of: - |
A delineated band of rental values is based on the basket of evidence typical as at the AVD and pertinent to the Rooftop on which the herediament sits in terms of area/situation/topography. In cases of hereditaments where the rent passing has been RPI'd or is OLD OMV or indeed OMV fixed post AVD these will be considered and weighted having regard to Rents passing in the immediate vicinity at AVD Planning Constraints prevailing in the area Market at Material Date. | Type 1 - To be valued on an individual basis as they fall outside the delineated bands of value Type 2 - Typically Prime and falls with in a Delineated band of rental Values Type 3 - Typically Secondary and falls with in a delineated band of rental Values Type 4 - Typically Tertiary and falls with in a delineated band of rental Values Bands of rental value are to be determined by individual Groups. |
Rooftop payaway | 60% of Base Rent per sharer Per individual Group Rooftop Scheme) |
10. Appendix J
Summary 2010 Valuation Scheme SCAT 066
10.1 Green Fields In Side Of M25
TYPE | HEIGHT | BASE RENT | CAP |
Lamp Post | Up to 12.1m | £4,000 | N/A |
Lamp Posts and Light Duty Monopoles including streetworks without compound | 12.2m - 25.9m | £5,500 | N/A |
All Medium duty and Heavy duty Monopoles and Towers with and without compound | 12.2m - 25.9m | £7,000 | N/A |
All Monopoles and Towers with compound | 26m –35.9m | £10,000 | N/A |
Towers/Guyed Masts | 36m – 45.9m | £15,000 | N/A |
Towers/Guyed Masts | 46m – 60.9m | £20,000 | N/A |
Towers/Guyed Masts | 61m –150.9m | £25,000 | N/A |
Towers/Guyed Masts | 151+ m | To be valued on an individual basis | |
Single Guyed Radiators | All Heights | £17,000 | N/A |
Paired Guyed Radiators | All Heights | To be provided at later date | |
Single & Paired Guyed Radiator with Monopole or Tower | All Heights | To be provided at later date | N/A |
Minor Sharer = any Non Mobile Occupier making payment to host at AVD of or equal to | £3,500 | ||
GREENFIELD PAYAWAY | £2,500 |
London central Westminster area | Value and location | |
Pico or Micro Cells where wall mounted on or in buildings /kiosks (including flag pole types on sides of buildings and forecourts) | Category 1 £6,000 | Main Line Stations Termini and Shopping Centres |
Category 2 £3,250 | Postal Districts W1 and WC2 | |
Category 3 £3,000 | Postal Districts EC1,N1,N6,N7,NW1,NW3,NW5 NW6,NW8,SW1,SW3,SW5,SW7 SW10,W2,W8,W9,W10,W11,W14 WC1 | |
Category 4 £2,750 | Postal Districts NW10,SW6,W6,W12 | |
TV Repeater Stations “Broadcast Mast” with No sharers on Greenfield sites up to 45 M | N/A | |
LONDON CENTRAL CITY AREA | Value and Location | |
Pico or Micro Cells where wall mounted on or in buildings /kiosks (including flag pole types on sides of buildings and forecourts) | Category 1 | Valued separately, supported by individual rents. |
Category 2 £3,250 | (City) Postal Districts EC1,EC2,EC3,EC4 | |
Category 3 £3,000 | (City Fringes) Postal Districts E1, E2,N1,N14, remainder of E14 | |
Category 4 £2,750 | (Remainder) Postal Districts E3,E5,E8,E9,N5,N7,N16,N19 | |
TV Repeater Stations “Broadcast Mast” with No sharers on Greenfield sites up to 45 M | N/A |
Description | Value |
London south and north groups only | |
Pico or Micro Cells where wall mounted on or in buildings /kiosks (including flag pole types on sides of buildings and forecourts) | £2,750 |
TV Repeater Stations “Broadcast Mast” with No sharers on Greenfield sites up to 45 M | N/A |
10.2 Rooftop Sites In Side Of M25
GROUP OFFICE | Type | Value | Location & Band of Values |
LONDON CENTRAL - WESTMINSTER AREA | |||
Type 1 | To be valued on an individual basis | Typically rental value greater than £22,000 and less than £10,000 as at AVD across the area and including the whole of Leicester Square WC2. | |
Type 2 | £20,500 | Generally within £22,00 to £19,001 band of rental values and to include: - NW1 (Euston Road and Marylebone Road only) SW1 (St James, Victoria and Whitehall) W1 WC2 (excluding Leicester Square) | |
Type 3 | £17,500 | Generally within £19,000 to £16,001 band of rental value and to include: - EC1 N1, N6 NW1 (excluding Euston Road and Marylebone Road) NW3, NW8 SW1 (excluding St James, Victoria and Whitehall) SW3, SW5, SW7, SW10 W2, W8, W9, W14 WC1 | |
Type 4 | £13,750 | Generally within £16,000 to £10,000 band of rental values and to include: - N7 NW2, NW5, NW6, NW10 SW6 W6, W10, W11, W12 | |
TV Repeater Stations “Broadcast Mast” no sharers on ROOFTOP Site. NO Mobile Demand | £8,000 |
London Central - City Area | |||
Type 1 | To be valued on an individual basis | Typically rental value greater than £24,001 and less than £10,000 as at AVD across the area and to include: - Canary Wharf Cannon Street and Liverpool Street Stations, St Paul’s Cathedral, Bank of England, Stock Exchange | |
Type 2 | £22,500 | Generally within £24,000 to £19,001 band of rental values and to include: - EC1, EC2, EC3, EC4 Excludes those located in Type 1 areas | |
Type 3 | £17,500 | Generally within £19,000 to £16,001 band of rental value and to include: - E1, E2, E14 (excludes Canary Wharf) N1, N14 | |
Type 4 | £13,750 | Generally within £16,000 to £10,000 band of rental values and to include: - E3, E5, E8, E9 N5, N7, N16, N19 | |
TV Repeater Stations “Broadcast Mast” no sharers on ROOFTOP Site. NO Mobile Demand | £8,000 | ||
London South And North Groups Only | |||
Generally Type 2 | £13,500 | Generally within £16,000 to £10,000 band of rental values. | |
TV Repeater Stations “Broadcast Mast” no sharers on ROOFTOP Site. NO Mobile Demand | £6,250 |
Glossary
Bluetooth
Bluetooth is wireless technology found in most modern mobile phones and computers used to link devices to one another and the internet over short distances (up to 10 metres). Bluetooth networks use unlicensed short-range radio spectrum which only requires a low power supply. They are much slower than WiFi, with limited range and support fewer devices. Bluetooth generally sends data at less than 1 Mbps.
See Rating Manual Section 6: Part 3: 2017 Practice Note Section 860 - 3 WiFi and Bluetooth sites in buildings. The IEEE Standards (see below) for Bluetooth is 802.15.1
Broadband
The term ’broadband’ is widely used to describe a service that provides high speed internet access. Large amounts of data can be sent or received.
Broadband connections - Fixed
Data is sent via fibre and cables. (see cable and fibre below)
Broadband connections – Wireless
Data is sent by wireless radio spectrum from the wireless broadband base station to the device such as a mobile phone, tablet or lap top. The base station will connect to a fixed line network for Internet access through either; wireless relay, fixed fibre connection or through a copper connection such as an unbundled BT local loop.
Broadband speeds
Broadband is delivered in a number of ways and the type of technology used, distances and the number of users online determines the how fast information is sent and received. Information is measured in multiples of megabits.
Broadband speed is measured in megabits per second, stated as Mb or Mbps.
Convergence technology
The telecommunications industry is endeavouring to develop or combine technologies to enable improved communication services. The distinction between fixed and wireless broadband and mobile phone technologies will become increasingly blurred.
Cable and Fibre
Most of the residential and business population in England and Wales are able to access the internet through either:
-
BT (UK) and KCOM (Hull) networks (valued on a full Receipts and Expenditure basis)
-
Cable Networks (Virgin Media and Wightfibre). See: Rating Manual Section 6: Part 3 Section 870.
-
Fibre Optic Networks see Rating Manual Section 6: Part 3 Section 871.
-
Fibre Optic Next Generation Access, see Rating Manual Section 6: Part 3 Section 873.
IEEE Standards for Information Technology
IT standards are set by the Institute of Electrical and Electronics Engineers through its Standards Association. The IEEE sets standards for a number of industries including telecommunications.
The designated standard indentifies the type of technology in use and is useful when trying to decide if the WiFi or WiMax equipment is being used for 3G or 4G.
Mobile technology
Mobile phone technology is used to access the internet through what is known as 4G (4th Generation) and at lower speeds through 3G (3rd Generation) technology. Signals are carried in the licensed spectrum which is managed and regulated by OFCOM. 4G and 3G sites can appear to be very similar to wireless broadband sites, but the suitability of sites to realise the potential of higher level technologies also serves to increase site value.
Any sites using mobile phone technologies to deliver internet access are dealt with in Rating Manual Section 6 part 3 - Section 860 - Radio and TV Transmitting/Receiving Stations and Masts (including Microwave Masts).
Radio Spectrum
This part of electromagnetic spectrum, defined by frequency, is used to send voice, video and data. Frequency is the number of complete cycles of electromagnetic wave in a second and is measured in units of Hertz (Hz).Different types of wireless technology operate at different frequencies through the radio spectrum.
The frequency used often provides an indication of the technology being used.
Next Generation Access
The VOA uses the term Next Generation Access (NGA) to describe a new or upgraded access network that will allow substantial improvements in broadband speeds and quality of service compared to yesterday’s services. Given technological convergence the term is used to describe access networks based on a number of technologies including cable, fibre, fixed wireless and mobile.
Radio Spectrum - Licensed
Certain frequencies are chosen by Government to send signals for specific users, such as the emergency services. Any frequency which has been selected cannot be used without the operator being given a licence. The most commonly known licensed operators are the mobile phone companies especially those who use 3G and 4G technology.
Radio Spectrum - Unlicensed
Parts of the spectrum that are unlicensed can be freely used but they have a short range. Commercial users include, for example, taxi firms but wireless broadband operators now use the unlicensed spectrum. WiMax usage extends into the licensed spectrum depending of the type of coverage needed.
Sites for WiFi in domestic property
Wireless personal area networks in domestic hereditaments are assessed to Council Tax.
Sites for WiFi used in connection with Non-domestic occupations
For example a café which provides WiFi connection for its customers.
Tip in this example the WiFi will fall to be assessed as an ancillary to the host occupation.
Wide Area Networks
Wide area networks link local area networks. The characteristics of WiFi and WiMax are such that they can be used together to create any combination of networks. However as WiFi units are not connected by physical link (contiguous) the site of each WiFi installation will require separate assessment.
WiFi
Wi-Fi is a trademarked term of the IEE however it is generally used to describe; short range wireless technologies that allow an over-the-air connection between a wireless device and a base station, or between two wireless devices. Basic WiFi has a range of over 20 metres indoors, and 300 meters outside. WiFi is often used in homes or small specific areas (Hotspots) such as train stations or restaurants.
These can be identified by being within the IEEE’s 802.11 series.
WiMax
Worldwide Interoperability for Microwave Access. A wireless technology, similar to WiFi, but with a much longer range. WiMax is a high speed wireless alternative for internet access. And has a circa 10 kilometre range. When associated with a base station (mast) it can cover large areas and is the preferred technology when operators are setting up remote “Fixed” wide-area networks.
Some WiMax sites send information on the licensed spectrum and are used by Mobile Phone Operators for either 3G use or 4G. These sites must be valued in line with Rating Manual 5 Section 860 2017 Practice Note Radio and TV Transmitting/Receiving Stations and Masts (including Microwave Masts) These sites will have IEEE standards between of 802.16 e (3G) or IEEE standard of 802.16m (4G).
Wireless broadband
The data is sent through the air using radio waves. Providers use specific frequencies of the radio spectrum to send their signals.
Wireless technology
Wireless sites operate across the unlicensed and licensed spectrum using various wireless technologies including Bluetooth, WiFi, WiMAX, Mobile and broadcast radio/TV. Wireless broadband and mobile technology allows devices to inter-connect and communicate with each other and the internet via broadband. The speeds at which an end user can down load and upload information are measured in Megabits per second (Mbps).
Appendix 2
Appendix 3
Inspection Check List