26 August 2026
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30 September 2025
We explore key provisions of the Electronic Communications Code, including statutory rights for telecom operators, agreement continuation under paragraph 30, and termination requirements under paragraph 31.
The fundamental provisions of the Electronic Communications Code (the “Code”) came into force following the passing of the Digital Economy Act 2017. The Code grants operators statutory rights to install, maintain and operate their electronic telecommunications apparatus over land subject to agreements with landowners or rights imposed by the court.
When an agreement would ordinarily end in accordance with its contractual terms (e.g. at term expiry or upon exercise of a break clause), paragraph 30 of the Code provides for statutory continuation of the agreement until it is terminated by the landowner or the operator in accordance with the Code. This is similar in effect to ‘holding over’ under the Landlord and Tenant Act 1954.
As such, for a break to be valid and effect termination, it must be served before or alongside a Code termination notice pursuant to paragraph 31 of the Code.
A paragraph 31 notice requires at least 18 months’ notice to be provided, which ends not earlier than the contractual expiry or break date, and must include one of the cited termination grounds prescribed by the Code, such as redevelopment.
In December 2021, BT (the landlord) granted On Tower (the tenant) a lease of part of a roof of a site until November 2030, with options to renew. The lease fell within the ambit of the Code and contained a landlord’s break clause.
On 3 October 2022, BT served a contractual break notice to end the lease on 8 November 2023 and a paragraph 31 notice (citing redevelopment as the termination ground) under the Code to end the Code agreement on 8 April 2024. On Tower opposed both notices and made a reference to the Upper Tribunal (“UT”) for an order to continue to exercise its Code rights on the same or modified terms.
In the original decision made at the UT, the tribunal held that a landowner could serve a paragraph 31 notice even if the contractual break had not been exercised, provided the break right was (in principle) available.
On Tower appealed the decision at the Court of Appeal (“CoA”).
The CoA allowed the appeal, reversing the decision of the UT and providing useful confirmatory commentary on the application of the Code.
The CoA held that Code agreements continue by force of statute, as opposed to contract, so that the Code right continues to be exercisable by the operator and to bind the landowner. Such statutory continuation does not render a contractual break provision as having no legal effect; it merely acts as a ‘gloss’ and can only be removed with a valid paragraph 31 notice.
Consequently, the service of a valid break notice only ends the contractual agreement between the parties – the service of a paragraph 31 ends the statutory arrangement between the parties. As such, landowners must first end the contractual element of the agreement before the statutory element is terminated.
The CoA further confirmed that where an agreement contained a landowner break provision requiring service by notice relying on specified grounds and subject to conditions, nothing in the Code could override such terms. The Code does not trump existing contractual break terms unless such terms purport to modify/disapply the paragraph 31 process.
Finally, the CoA determined that where a landowner relies on a break clause as the ground for serving a paragraph 31 notice, it “must exercise its right to break the contractual term in compliance with the terms of that clause”. In this respect, it is not enough that the break could be used (as was the argument advanced by BT in the UT case) – the break had to be validly exercised if this was a requirement to terminate the agreement.
It is worthwhile noting that BT has now appealed the Court of Appeal’s decision to the Supreme Court.
Sharpe Pritchard’s telecommunications team offers advice and guidance to landowners and operators alike across the full spectrum of Code-related issues. If you would like to discuss the Code process and/or your legal options in connection with the Code, please contact James Mallery-Nelson (jnelson@sharpepritchard.co.uk) or on 0207 405 4600 for a free initial consultation.
This article is for general awareness only and does not constitute legal or professional advice. Law and guidance relating to the Code is continually being updated and the law may have changed since this page was first published. If you would like further advice and assistance in relation to any issues raised, please contact us today by telephone or email.