Communications Act 2003, Schedule 3A, paragraph 24

How is consideration to be determined under paragraph 23?

SCHEDULE 3A The electronic communications code

24 (1) The amount of consideration payable by an operator to a relevant person under an agreement imposed by an order under paragraph 20 must be an amount or amounts representing the market value of the relevant person's agreement to confer or be bound by the code right (as the case may be).

(2) For this purpose the market value of a person's agreement to confer or be bound by a code right is, subject to sub-paragraph (3), the amount that, at the date the market value is assessed, a willing buyer would pay a willing seller for the agreement—

(a) in a transaction at arm's length,

(b) on the basis that the buyer and seller were acting prudently and with full knowledge of the transaction, and

(c) on the basis that the transaction was subject to the other provisions of the agreement imposed by the order under paragraph 20.

(3) The market value must be assessed on these assumptions—

(a) that the right that the transaction relates to does not relate to the provision or use of an electronic communications network;

(b) that paragraphs 16 [F1415 , 17 and 17AF1415] (assignment, and upgrading and sharing) do not apply to the right or any apparatus to which it could apply;

(c) that the right in all other respects corresponds to the code right;

(d) that there is more than one site which the buyer could use for the purpose for which the buyer seeks the right.

(4) The terms of the agreement may provide for consideration to be payable—

(a) as a lump sum or periodically,

(b) on the occurrence of a specified event or events, or

(c) in such other form or at such other time or times as the court may direct.

Definitions used in Schedule 3A, paragraph 24 5

the operator

18 (1) This paragraph applies where, immediately before the abolition of licensing, a person holding a licence under section 7 of the 1984 Act (“the operator”) —

(a) is a person to whom the telecommunications code applies in respect of the running of a telecommunications system by him (“the operator’s system”); and

(b) in pursuance of a condition of his licence imposed for the purpose of securing that sufficient funds are available to meet code-related liabilities specified in the licence, is a party to any guarantee arrangements.

Defined in Sch.18 para.18(1) · see it in the full Act
relevant person

(7) In sub-paragraph (6)(a) “relevant person”, in relation to land to which section 90B(5) of the Scotland Act 1998 applies, means the person having the management of that land.

Defined in Sch.3A para.104(7) · see it in the full Act
electronic communications network

(1) In this Act “electronic communications network” means—

(a)a transmission system for the conveyance, by the use of electrical, magnetic or electro-magnetic energy, of signals of any description; and

(b)such of the following as are used, by the person providing the system and in association with it, for the conveyance of the signals—

(i)apparatus comprised in the system;

(ii)apparatus used for the switching or routing of the signals; ...

(iii)software and stored data ; and

(iv)(except for the purposes of sections 125 to 127) other resources, including network elements which are not active.

Defined in s.32(1) · see it in the full Act

“electronic communications network” and “electronic communications service” have the meanings given by section 32;

Defined in s.405(1) · see it in the full Act
apparatus

“apparatus” includes any equipment, machinery or device and any wire or cable and the casing or coating for any wire or cable;

Defined in s.405(1) · see it in the full Act
provide

“provide” and cognate expressions, in relation to an electronic communications network, electronic communications service or associated facilities, are to be construed in accordance with section 32(4);

Defined in s.405(1) · see it in the full Act

Cases considering Schedule 3A, paragraph 24 12

Cornerstone Telecommunications Infrastructure Ltd v Compton Beauchamp Estates Ltd

[2022] UKSC 18 · 22 June 2022

The no-scheme valuation assumptions provide a material benefit under the new Code. That benefit supported requiring protected transitional tenants to use the business-tenancy renewal regime instead of obtaining replacement rights through Part 4. (see paras [24]; [166]-[168])

Covent Garden IP Limited v Cornerstone Telecommunications Infrastructure Limited

[2025] UKUT 136 (LC) · 30 April 2025Interprets

Paragraph 24(1) provides the market-value measure for consideration under an agreement imposed under paragraph 20. It does not require substantive consideration in an interim-rights agreement. (see paras [20]; [40]) Paragraph 24(2) expresses market value as the price between a willing buyer and a willing seller on the prescribed assumptions. The judgment treats the question whether such parties would agree more than a nominal sum as one capable of valuation evidence. (see paras [20]; [32]) The no-network assumption removes the operator’s network-related commercial value from the valuation exercise. It helps explain why nominal consideration for short MSV rights is commonly agreed. (see paras [20]; [35]; [41])

Vodafone Limited v Icon Tower Infrastructure Limited & Anor

[2025] UKUT 58 (LC) · 20 February 2025

The Tribunal applied the statutory valuation assumptions to explain why a renewed agreement would secure a Code rent rather than an open-market rent. That consequence formed part of the public benefit under paragraph 21(3) (see paras [392]-[399]).

What each judgment says about Schedule 3A, paragraph 24 is in the case-law panel in the full Act.

Amendments and notes

3 notes from legislation.gov.uk

Amendments

  1. F1415Words in Sch. 3A para. 24(3)(b) substituted (17.4.2023) by Product Security and Telecommunications Infrastructure 2022 (c. 46), ss. 59(4), 79(2); S.I. 2023/109, reg. 3(b)

Modifications

  1. C82Sch. 3A paras. 21-24 applied (with modifications) (13.11.2025) by The Stonestreet Green Solar Order 2025 (S.I. 2025/1175), art. 1, Sch. 12 para. 4(4) (with art. 40, Sch. 13)
  2. C85Sch. 3A para. 24 applied (with modifications) (E.W.) (11.8.2022) by The Sizewell C (Nuclear Generating Station) Order 2022 (S.I. 2022/853), art. 1, Sch. 18 para. 4(4) (with arts. 62, 76, 87)