Mobile network operators in the UK, including EE, Vodafone, O2, and Three, are increasingly voicing concerns over the impact of leasing firm AP Wireless on 5G deployment costs. The firm is reportedly driving up expenses for leasing sites, adding financial pressure to already sluggish efforts to expand 5G infrastructure, according to ISPreview.
Before the 2017 revision of the Electronic Communications Code (ECC), landowners could demand annual rents of $6,500–9,000 for allowing mobile operators to use their land for infrastructure, such as cell towers or fiber-optic trenches. These high costs discouraged operators from expanding coverage, particularly in rural or less profitable areas.
The U.K. government revised the ECC to reduce barriers and costs for telecom operators to access public and private land. The intention was to balance the needs of operators with those of landowners, but it caused significant disruption. Operators pushed for drastically reduced rents, in some cases as low as tens of pounds per year, sparking disputes with landowners and discouraging cooperation.
AP Wireless, a leasing firm, has leveraged these disputes by consolidating ownership of infrastructure sites, giving it significant influence over lease terms, according to market analysts. Operators argue that this increases site costs, hindering their ability to invest in broader 5G rollouts, especially in rural areas. Operators claim that AP Wireless’s practices have added financial strain, undermining the cost efficiencies intended by the ECC.
Higher costs are allegedly jeopardizing the business case for new 5G deployments, further delaying the U.K.’s progress in meeting its connectivity targets. Rural and less profitable areas are disproportionately affected, as operators prioritize deployments in more lucrative urban areas, according to ISPreview.
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