The Electronic Communications Code: What the PSTI Act changes

The balance between operators and landowners under the Electronic Communications Code (the Code) has shifted again.

The Product Security and Telecommunications Infrastructure Act 2022 (the PSTI Act) changes the approach to valuation, compensation, infrastructure sharing, upgrading and dispute resolution. Some of the key relevant provisions came into force in April 2026 so, with the reforms now beginning to operate in practice, this insight looks at the changes that matter most and where operators and landowners should be focusing their attention.

Valuation and compensation: Looking beyond headline rent

One of the most commercially significant reforms concerns protected telecoms renewals under the Landlord and Tenant Act 1954 (the 1954 Act).

Historically, the section 34 market rent test in the 1954 Act could result in higher rents than the Code's "no network" valuation approach. The PSTI Act removes that distinction for qualifying telecoms renewals, bringing 1954 Act renewal valuations into line with Code valuations.

For operators, this creates greater consistency across renewal portfolios. For landowners, lower headline rents place greater emphasis on the wider renewal package, including compensation and substantive lease terms.

Landowners are now entitled to compensation for loss or damage caused by the exercise of Code Rights under qualifying 1954 Act telecoms renewals. Operators are required to compensate landowners for loss or damage sustained, or to be sustained, as a result of exercising the Code Rights conferred by the new tenancy. This makes understanding potential loss, and the operator's corresponding exposure, an increasingly important part of renewal negotiations.

Sharing: Supporting a more collaborative infrastructure model

The PSTI Act strengthens the position on infrastructure sharing. Section 57 makes sharing electronic communications apparatus an express Code Right, including associated rights of entry, and allows sharing rights to be exercised to enable other operators to provide their networks. Section 58 also gives certain upgrading and sharing rights to transitional subsisting agreements.

This gives greater statutory support to network sharing and infrastructure-provider models. Very restrictive sharing provisions in new occupational agreements may therefore not be enforceable where the reforms apply.

Operators should consider sharing alongside access, upgrading, assignment and restrictions on use, while landowners should understand the sharing rights that may apply to their land.

Legacy sites: Greater flexibility than you might think

The PSTI Act extends upgrading rights, particularly in relation to underground apparatus and older agreements. Operators may therefore be able to make greater use of existing network estates and legacy agreements rather than having to negotiate new agreements.

Reviewing legacy portfolios could identify additional opportunities as part of future network expansion for operators. It is equally important for landowners to understand existing rights, particularly before development, regeneration or disposal.

Disputes: Engage earlier

The reforms also change how disputes should be approached. Parties must consider whether ADR could resolve a dispute or narrow the issues before applying to the tribunal, while operators must include prescribed information about ADR when serving certain statutory notices requesting Code Rights. An unreasonable refusal to engage can also be taken into account when costs are determined. ADR should therefore form part of any pre-application strategy.

Additionally qualifying 1954 Act telecoms renewal proceedings commenced in England and Wales after July 2026 are now heard in the First-tier Tribunal or Upper Tribunal rather than the county court, bringing these renewals before specialist tribunals familiar with Code disputes.

What should you do now?

Taken together, these reforms change more than individual aspects of Code agreements. They shift where value, opportunity and risk sit throughout the lifecycle of a site.

Four priorities stand out:

• Review existing portfolios to understand the sharing and upgrading rights available and the implications for future development or network expansion.
• Revisit standard agreements so that sharing, upgrading and other provisions reflect the reformed Code.
• Look at the whole renewal package, including compensation rather than headline rent alone.
• Engage early when disputes arise, with ADR built into the pre-application strategy.

For operators, the opportunity lies in understanding what more can be achieved from existing portfolios. For landowners, the priority is understanding the rights affecting their land and where value and risk now sit.

Applying established approaches to the new regime may no longer be enough. Existing agreements and portfolios should be reviewed against the reformed Code.

Whether you are planning network expansion, reviewing a legacy estate, entering into sharing arrangements or considering development of a telecoms site, understanding how the reforms interact with existing agreements will be increasingly important. Our telecoms team can help review existing rights, navigate the reforms and support operators and landowners when negotiating new or renewed agreements.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at October 2026. For more information see our terms & conditions terms & conditions.