UK operators Vodafone and O2 have asked farmers to reduce the rent they charge for their mast networks by up to 40%, reported the Sunday Telegraph.
Letters sent from Cornerstone, the companies’ network JV, have informed landlords they face having sites…
UK operators Vodafone and O2 have asked farmers to reduce the rent they charge for their mast networks by up to 40%, reported the Sunday Telegraph.
Letters sent from Cornerstone, the companies’ network JV, have informed landlords they face having sites scrapped if they fail to concede to the demands.
Network operators are looking for ways to cut the cost of their infrastructure, after rushing to erect tens of thousands of masts across the UK over recent years.
A spokesperson for O2 said: “We first announced a programme to share mobile network assets across selected European operations with Vodafone in March 2009.
“The purpose of the programme is to reduce the environmental impact of the network by lowering the number of sites required by each company and to reduce network operating costs. We would not comment on commercially confidential terms of leases but clearly we are reviewing sites in line with our programme announced last year.”
One anonymous farmer cited in the report rejected a mid-contract request from Vodafone to lower his rent by 40%, with O2 sharing the mast for free.
In response, an agent acting on behalf of Vodafone reportedly told the farmer that his site would be included in its ongoing review of future network requirements.
A spokesman for Vodafone was also unable to comment on specific agreements, but said: “In a tough economic climate we are looking at ways to drive greater efficiencies and reduce the operating costs of the network. Part of this strategy is to increase the number of sites we share with O2 and, at the same time, to renegotiate market competitive rental agreements.”
He added that Cornerstone is not the only group in the UK that is consolidating its masts. MBNL, the JV between mobile operators 3 and T-Mobile, has just completed an 18 month project that reduced rents. Everything Everywhere, the JV of mobile operators Orange and T-Mobile, is expected to be even tougher on rents because it is pursuing cost savings of £3.5bn.
