Communications Act 2003 Sch.3A para.32 – What is the effect of a notice under paragraph 31?

32 (1) Where a site provider gives a notice under paragraph 31, the code agreement to which it relates comes to an end in accordance with the notice unless—

(a) within the period of three months beginning with the day on which the notice is given, the operator gives the site provider a counter-notice in accordance with sub-paragraph (3), and

(b) within the period of three months beginning with the day on which the counter-notice is given, the operator applies to the court for an order under paragraph 34.

(2) Sub-paragraph (1) does not apply if the operator and the site provider agree to the continuation of the code agreement.

(3) The counter-notice must state—

(a) that the operator does not want the existing code agreement to come to an end,

(b) that the operator wants the site provider to agree to confer or be otherwise bound by the existing code right on new terms, or

(c) that the operator wants the site provider to agree to confer or be otherwise bound by a new code right in place of the existing code right.

[^F1423 (3A) The counter-notice must also—

(a) contain information about the availability of alternative dispute resolution in the event that the operator and the site provider are unable to reach agreement, and

(b) explain the possible consequences of refusing to engage in alternative dispute resolution.^F1423]

(4) If, on an application under sub-paragraph (1)(b), the court decides that the site provider has established any of the grounds stated in the site provider's notice under paragraph 31, the court must order that the code agreement comes to an end in accordance with the order.

(5) Otherwise the court must make one of the orders specified in paragraph 34.

[^F1424 (6) Before applying under sub-paragraph (1)(b) for an order under paragraph 34 the operator must, if it is reasonably practicable to do so, consider the use of one or more alternative dispute resolution procedures to reach agreement with the site provider.

(7) The operator or the site provider may at any time give the other party to the agreement a notice in writing stating that the operator or the site provider (as the case may be) wishes to engage in alternative dispute resolution with the other party to the agreement in relation to the site provider’s notice under paragraph 31.^F1424]

Definitions used in Schedule 3A, paragraph 32 3

code agreement

(5) An agreement to which this Part of this code applies is referred to in this code as a “code agreement”.

Defined in Sch.3A para.29(5) · see it in the full Act

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

information

“information” includes accounts, estimates and projections and any document;

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

Cases considering Schedule 3A, paragraph 32 3

On Tower UK Limited v AP Wireless II (UK) Limited

[2026] EWCA Civ 43 · 3 February 2026

The court referred to paragraph 32 as governing the effect of a termination notice and the operator’s counter-notice or application for an order under paragraph 34. The current operator must be in a position to take those procedural steps. (see paras [16]; [46]-[47]) The court referred to paragraph 32(1)(b) as the route by which an operator applies to the Tribunal for an order under paragraph 34 after a counter-notice. (see paras [16]; [19]) The court noted that a counter-notice under paragraph 32(3) may state that the operator does not want the agreement to end or wants new terms or a replacement right. (see para [16]) The court referred to paragraph 32(4) as requiring the Tribunal to make one of the paragraph 34 orders unless the site provider establishes a termination ground. (see para [16]) The court referred to paragraph 32(5) as requiring termination where the site provider establishes one of the grounds stated in its paragraph 31 notice. (see para [16])

Vodaphone Ltd v Potting Shed Bar and Gardens Ltd & Anor

[2023] EWCA Civ 825 · 14 July 2023

Provides for a counter-notice and tribunal application following a termination notice, with specified consequences depending on whether the relevant ground is made out.

Cornerstone Telecommunications Infrastructure v Ashloch Ltd & Anor (Rev 2)

[2021] EWCA Civ 90 · 29 January 2021Interprets

The operator may counter-notice and apply to the Tribunal for an order concerning termination. (see para [36]) Where a termination ground is established, the Tribunal must order the Code agreement to end in accordance with the order. (see paras [36], [43])

What each judgment says about Schedule 3A, paragraph 32 is in the case-law panel in the full Act.

Amendments and notes

2 notes from legislation.gov.uk

Amendments

F1423Sch. 3A para. 32(3A) inserted (7.11.2023) by Product Security and Telecommunications Infrastructure 2022 (c. 46), ss. 69(3)(a), 79(2); S.I. 2023/1022, reg. 2(b)
F1424Sch. 3A para. 32(6)(7) inserted (7.11.2023) by Product Security and Telecommunications Infrastructure 2022 (c. 46), ss. 69(3)(b), 79(2); S.I. 2023/1022, reg. 2(b)