Oliver Radley-Gardner WHOSE LINE IS IT ANYWAY? - telecommunications operators and their mast-sharing arrangements by Oliver Radley-Gardner Falcon Chambers Oliver Radley-Gardner is a barrister at Falcon Chambers, and covers all areas of property and landlord and tenant law. His recent cases include Spencer v Taylor, about notices and assured shorthold tenancies. He is also often instructed in cases with a telecoms flavour, whether in relation to proceedings brought under the Electronic Communications Code, or lease renewal proceedings. He was junior counsel in Bridgewater Canal Co Ltd v GEO Networks, the most recent of the handful of reported cases which engages with the Code in any detail. He is the co-author of the first edition of a new textbook (produced with other colleagues in Chambers), Residential and Commercial Service Charges, the co-author of the second edition of Adverse Possession (with Stephen Jourdan QC), and a contributor to Fisher and Lightwood's Law of Mortgages. He will not be retiring on the royalties. He is ranked by Legal 500 and Chamber and Partners. FALCON CHAMBERS Falcon Court London EC4Y 1AA Tel: Fax: Email: Who’s Line is it Anyway? November 2014 020 7353 2484 020 7353 1261 [email protected] !1 Oliver Radley-Gardner Introduction 1. Anyone who has watched television, or, for that matter, been outside, will know that the telecommunications market is in a constantly evolving state. 2. 1 Operators are getting into bed with one another. Everything Everywhere (“EE”, the one with the ads featuring Kevin Bacon) is a joint enterprise of T-Mobile and Orange. We are increasingly seeing the use of jointly owned infrastructure companies in which operators vest leases and hardware. 3. 2 Sharing is driven by business considerations, but is also encouraged by the regulatory and planning framework in which operators operate. We can expect to see more of it, and novel forms of it. 4. All of this sharing has implications for us, as property lawyers, whether we are negotiating leases for telecoms clients with one eye to the future of their networks, or are on the other side of the fence, acting for private landowners anxious to ensure that their income streams remain reasonably certain and clear into the future. With increasing frequency, we are also litigating against each other about potential breaches of lease terms, or about the meaning of leases (and the need to modernise them) on renewals. 5. The question is whether or not our lease precedents are keeping up with the evolving technology and commercial realities of the telecommunications sector, and whether we need to update or supplement familiar drafting concepts to capture new ways in which land can be exploited economically. 1 3 A list is to be found at the OFCOM website: http://stakeholders.ofcom.org.uk/telecoms/policy/electroniccomm-code/register-persons-power 2 3E.g. http://mbnl.co.uk/about-us/ A similar issue arose in the context of virtual assignments, in the Clarence House Ltd v National Westminster Bank Plc decision [2009] EWHC 77 (QB), [2009] EWCA Civ 1131. Who’s Line is it Anyway? !2 November 2014 Oliver Radley-Gardner Sharing – Why? 6. Sharing has been back on the political menu recently. The Prime Ministerial country holiday has twice been curtailed due to a lack of a reliable rural mobile 4 telephone signal. This has prompted new Government policy. Operators should, it is suggested, make their infrastructure available to one another in poorlyserviced areas to patch the holes in network coverage. Understandably, the operators have been rather unenthusiastic in their own reception. 7. 5 While one of course sympathises with the PM’s smartphone, there are other reasons why sharing is regarded as beneficial. For operators, sharing can make business sense, as it reduces capital expenditure on kit (which can be quite high), operational costs (rent and maintenance costs), and legal and transaction costs (fewer new leases or lease renewals). 8. 6 A reduced requirement for sites may also be welcomed by operators given that, as the general market becomes increasingly aware of the implications of having an operator with Electronic Communications Code (“ECC”) protection on site, fewer landowners may be willing to accommodate them, particularly those who want to keep their sites flexible for redevelopment. Further, local residents can be strongly opposed to such masts on aesthetic grounds or for health reasons, whether well-founded or not. 7 4 http://www.independent.co.uk/news/uk/politics/david-cameron-cancelled-summer-holiday-because-hecouldnt-get-any-signal-on-his-phone-9554660.html 5 6http://www.out-law.com/en/articles/2014/september/telecoms-operators-reject-network-sharing-plans/ Some indication of the levels of savings to be made by sharing is given in an article from 2010 on predicated savings arising out of the 3/T-Mobile sharing arrangements. It is notable that the sharing arrangement was thought to be likely to result in a reduction of sites requires by 5,000, with targeted costs savings of £2 billion over ten years: http://www.economistinsights.com/sites/default/files/A %20network%20shared.PDF 7 They were not well-founded in Petursson&Anor v Hutchison 3g UK Ltd. [2005] EWHC 920 (TCC): 12. The claimants' evidence is that a pattern of symptoms emerged quickly after 7 August 2003. They experienced a sense of disorientation, difficulties in concentration and keeping the mind focussed. They also complained of mounting nausea and dizziness throughout the day, peaking in the afternoon when, they believed, the traffic from the antennas was at its heaviest. Mr Petursson's evidence is that, from the time when the apparatus became operational, he suffered dizziness, a heavy pressure on his head and nausea. Mrs Ingvarsdottir's evidence is that, until August 2003, she had been in excellent health with the exception of orthopaedic problems. From 7 August 2003, she began to experience headaches so violent that she lost concentration, had trouble with her eyesight and was sensitive to light. She became nauseous during the day; this Who’s Line is it Anyway? !3 November 2014 Oliver Radley-Gardner 9. Sharing is not just desirable, but positively encouraged. For planning authorities, sharing reduces the number of unsightly masts. From a regulatory point of view, sharing is also regarded favourably. 8 Sharing – How? 10. In order to understand sharing, one needs to understand a little bit about how networks work. A very useful summary of the component elements of a Mobile Communications Network is to be found in the decision in Arqiva Ltd &Ors v Everything Everywhere Ltd &Ors [2011] EWHC 1411 (TCC) (hereafter “Arqiva”), at paragraphs [31] – [34]. Those paragraphs appear as an appendix to this paper. 11. Sharing may take a number of forms. Broadly speaking, the literature divides sharing arrangements into “passive” and “active” sharing, but that division is not watertight. Passive sharing is in effect concurrent but separate use of sites or masts by operators. Active sharing entails integration of the networks at a deeper, technological level, and there are many ways in which this can be done. became particularly bad during the afternoon. She experienced violent headaches, loss of appetite, nausea, sleeplessness, lack of concentration, bloodshot eyes, brown spots in her right eye (the side facing the apparatus whilst she sat at her office desk) and a prickling sensation on her skull which turned into a smarting sensation inside her head. She suffered badly from sleepless nights. Mrs Ingvarsdottir says that, now that she has left 57 London Road, her symptoms have largely disappeared. 13. The claimants believe that their cocker spaniel dog, Floppy, also suffered ill effects from the emissions. They say that he demonstrated changes in behaviour with loss of appetite, waking in the night and howling, going into hibernation mode and avoidance of some rooms in the property. 14. The claimants' case is that the apparatus has adversely affected their well-being and that of visitors to 57 London Road. The onset of their health problems coincided with the commissioning of the base station on 7 August 2003. Their evidence is that the symptoms they both experienced began on 7 August 2003. They did not know until later that that was the date on which emissions had begun. The defendant's case is that, by 20 June 2003 at the latest, the claimants believed (erroneously as it turned out) that the base station had been commissioned and that emissions had thus begun. They began to complain of the symptoms which they attribute to the emissions before the emissions in fact began. 15. 8 See generally, Law Commission, The Electronic Communications Code (Law Com No. 336), pages 45 – 51, available at http://lawcommission.justice.gov.uk/docs/lc336_electronic_communications_code.pdf . Who’s Line is it Anyway? November 2014 !4 Oliver Radley-Gardner 12. The below discussion is premised on the scenario of a site vested in one operator under a lease (“the lessee-operator”). The lessee-operator then lets a 9 second operator (“the occupier-operator”) make some economic use of its site without the express written consent of the landowner. At what point does such economic use become a problem under alienation covenants? That is, in litigation and advisory terms, where the problems tend to arise. 10 Passive Sharing 13. In 2007, the Mobile Operators Association published a paper in which only mast11 sharing or so called co-location 12 were identified as modes of sharing. Both of these forms of sharing have one thing in common. As already stated, the actual network of each operator remains entirely distinct and separate both physically and technically. All that is shared is either the site or the structure on which the operator has placed its equipment. There is no additional level of technological integration. It is a marriage of convenience and operators can have a quickie divorce. 14. Passive sharing can of course give rise to a number of potentially difficult factual problems. We all know that, depending on the facts, X can be said to be in occupation of land simply by having his “kit” there. 13 Has occupation been shared between the tenant and X in such circumstances, particularly where X is pursuing its own commercial interests? What is the nature of X’s interest as sharer, and where does it arise from? How much control does X in fact have? Those are all factual issues that one needs to grapple with in practice but that are not suitable for this talk. 9 10A loaded term, I know, given what follows. Evidently, the arguments will be different if there is a letting to two operators jointly from the outset (which is not a scenario I have come across), or a letting to an infrastructure co jointly owned by two or more operators (which is a modern phenomenon resulting from the setting up of telecoms joint ventures). 11 12 Meaning the use of one physical compound to locate two or more operators’ masts. 13http://www.mobilemastinfo.com/images/stories/documents/fact_sheets/site_sharing_b.pdf E.g. Bradford (Valuation Officer) v Vtesse Networks Ltd [2008] EWCA Civ 1339 (rateable occupation by fibreLine optic Northern Electric PLC v Addison (1999) 77 P.&C.R. 168. Who’s is itcable); Anyway? !5 November 2014 Oliver Radley-Gardner 15. A related issue is the use of infrastructure companies. There are corporate vehicles which “own” in some shape of form the equipment, or even the lease to the site, and which then make those assets available to operators to use.There are of course issues about such companies, which may not be ECC operators themselves. This may raise a number of issues, for instance about user covenants, assignment and any contractual ownership conditions under a particular agreement. That is a topic in itself, and I will leave it there for now. 16. What is worth discussing more in relation to passive sharing (though the issues can also become relevant for active sharing) is whether or not an occupieroperator, who is on site at the invitation of a lessee-operator, but without any direct agreement with the landowner, has thereby acquired rights under ECC, and, if so, against whom. 17. It seems from one reading of ECC is that the answer is as follows: a. Under paragraph 2(1) ECC, “the agreement in writing of the occupier for the time being shall be required for conferring on the operator a right for statutory purposes […]” to do the things paragraph 2 permits. b. Any person with a superior interest (such as the lessee-operator’s reversioner) is not bound unless he has “agreed in writing to be bound by the right” (paragraph 2(2) ECC). c. It seems to me to be unlikely that an alienation covenant pre-dating a siteshare, and which does not prohibit the sharing of occupation or possession will be treated as an agreement by the holder of a superior interest to be bound by any ECC right subsequently asserted to by the occupier-operator. d. On the other hand, it seems to me that where a licence to share is given by a landlord pursuant to a request made under a qualified alienation covenant, that licence might amount to a paragraph 2 agreement (depending on the terms in which it is expressed). It would probably be Who’s Line is it Anyway? November 2014 !6 Oliver Radley-Gardner harder to argue that a licence to make alterations to implement sharing amounts to a paragraph 2 agreement by the landlord. e. As far as the relationship between the lessee-operator and the occupieroperator is concerned, the latter would have a potential ECC right which is binding on the lessee-operator (depending on the formality of the arrangements between them, and the content of the rights conferred). f. It would follow from the above analysis that the occupier-operator has no ECC rights that it can invoke against the landowner, and on expiry or termination of the lessee-operator’s contractual and ECC rights, the site can be cleared without further trouble by the landowner. 18. There remains a question mark, however. That question mark hangs over paragraph 21. This is the notice procedure that entitles an occupier to require that an operator remove their apparatus from land. The question mark arises as follows: a. It is generally accepted that an “entitlement to require removal” arises when there is no longer any right for the operator to be on-site (i.e. the licence or lease has terminated), that is, where there is a common law 14 right to possession. b. It may be that the “entitlement” arises in wider situations than that, but this is yet to be tested. 15 c. It therefore follows from a. that an operator who was originally lawfully on site (under a paragraph 2 right or paragraph 5 dispensation binding the owner) but subsequently remains on site without any such right (it having expired, or been otherwise brought to an end) must be served with a notice under paragraph 21. Such an operator is then entitled to serve a 14 This is the narrowest meaning that one can give to paragraph 21. If that is what paragraph 21 means, however, then one might ask why it does not simply say so, rather than, instead, using the concept of an “entitlement to require” removal. 15 For my part, it seems to me that a right to seek an injunction in accordance Crestfort Ltd. &Ors v Tesco Stores Ltd &Anor [2005] EWHC 805 (Ch) would also do. Whether the ability to give a break notice, or serve a hostile section 25 notice, amounts to an entitlement to require removal is a separate matter, though given the operation of paragraph 21, and the “1954 Act conundrum” issue, there is in my view much to be said for it. As ever, ECC is difficult to construe on this point. Who’s Line is it Anyway? !7 November 2014 Oliver Radley-Gardner counter notice, and is then deemed to be on site lawfully if a counter notice is then served (paragraph 21(9)). 16 d. What of third party occupier-operators who never had a right against the owner of the site? Or, for that matter, an operator who is on site as trespasser ab initio? Here there is some scope for debate: i. There is nothing in paragraph 21 that limits the need to jump through the paragraph 21 hoops to operators whose occupation derives or originally derived from a paragraph 2 right or paragraph 5 dispensation. That might be taken to suggest that occupieroperators or even trespasser-occupiers must also be given such a notice. ii. However, if that is so, then no notice could arguably be given to them under paragraph 21 until the lessee-operator’s common law and ECC rights have been determined. That seems to be an unwieldy and unattractive way for ECC to operate, creating many layers of delay. iii. Perhaps the better analysis is therefore that paragraph 21 must be seen as part of the “general scheme” under ECC, and that paragraph 21 is only applicable to operators with an original right under paragraph 2 or a dispensation under paragraph 5 against the landowner, with occupier-operators having no rights at all. iv. If that is so, on expiry of the lessee-operator’s rights, the occupieroperators are mere trespassers if they hang on, without any ECC rights. That would give a sensible meaning to the extended binding effect of paragraph 2 agreements under paragraph 2(2), and would mean that a landowner is not prejudiced by a multiplicity of operators to whose individual presence he has not agreed. 16 For the general operation of these sections, I recommend Wayne Clark’s Blundell Lecture thon the topic, but also the Chapter on ECC in his and Kirk Reynolds QC’s Renewal of Business Leases, 4 ed, Chapter 16. This is the most full textbook treatment of ECC in the market. Who’s Line is it Anyway? November 2014 !8 Oliver Radley-Gardner v. However, matters may not end there, as such an occupier-operator could still serve a notice under paragraph 5 ECC to compulsorily acquire the rights he needs, albeit subject to what may be quite serious compensation requirements if that right, once conferred, precludes an intended development (see paragraph 7 ECC). 19. It may well be that the above concerns in relation to passive sharing need to be considered and addressed, at least where development is potentially in prospect, in lease drafting. It may well be that restrictions need to be placed not merely on occupation or possession, but also on whose equipment (however small) may be placed on site, by imposing an obligation on ownership of the equipment of the tenant, and for provision to be made to cover the eventuality that an operator other than the tenant asserts ECC rights. 20. 17 Even then, however, such drafting is only treating part of the problem. It has to be remembered that ECC protects apparatus, if used in connection with the provision of an electronic communication network. There is no additional “ownership” condition. Therefore, an operator might have a right to protection even though it has no proprietary interest in a given mast at all. As this problem also arises in connection with active sharing as well, I consider it there (and the matters considered above remain a concern under that heading too), however it may also be that restrictions should address not merely the ownership of apparatus, but also the network that is entitled to use it. Active Sharing 21. What about the other kind of sharing, which is so-called “active” sharing? This term is used to describe a multiplicity of arrangements, which have in common the fact that two operators’ networks are fully integrated with one another and only split from one another at some subsequent stage. That integration may be 17 Bearing in mind the provisions of paragraph 27 ECC, restricting contracting out. Who’s Line is it Anyway? November 2014 !9 Oliver Radley-Gardner purely technological and require no concurrent physical use of mast sites, or it may involve a degree of concurrent physical use (and may therefore straddle the neat active/passive divide). 22. I will consider three possibilities (technical experts who know about electronic communications systems should look away now). 23. One possibility is “RAN” sharing. This is the most comprehensive form of access sharing and might involve the sharing of antennae, masts and so-called “backhaul equipment”. The network equipment is fully integrated, though each operator keeps its distinct, allocated spectrum, though the network splits into distinct operator networks at the “core”. The idea behind this kind of sharing is, therefore, that two operators are operating from the same mast sites (and also sharing other equipment before splitting into their distinct networks at a later stage) at once. Whilst RAN sharing can entail (I am told) the presence of more than one operator’s kit on site, 18 in fact the physical use made by the sharer operator of the site can be very limited indeed. In RAN sharing situations, the sharer’s principal footprint is electromagnetic, and not physical. The sharing manifests itself in the fact that the sharer’s own spectrum allocation can be identified as coming from the mast as well as the tenant-operators’ spectrum. 24. A slightly separate, but related, form of concurrent sharing arises from so-called 19 “Mobile Virtual Network Operators” (“MVNOs”). MVNOs are companies that do not, in fact, have their own spectrum allocated to them. Instead, they absorb and make use of surplus spectrum given to MNOs. This means that a mast leased by an MNO could host not just that MNO, but also any number of MVNOs operating their own businesses but using the MNO’s excess capacity. 20 The point here is that there may be nothing at all, electronic or physical, to betray the presence of an MVNO. 18 Particularly where sharing has not been happening from the beginning. The position might be different where the site has been designed with such a capability in mind from the outset. 19 http://www.mvnodynamics.com/mvno-companies/eu-mvno-companies/uk-mvno-companies/. MNOs on the other hand are operators with an allocated spectrum. 20 http://www.mobile-virtual-network.com/p/mvno-explained.html Who’s Line is it Anyway? !10 November 2014 Oliver Radley-Gardner 25. A third form of sharing is network roaming. Under this arrangement, one operator permits another’s customers to use its network. If one were to go to a mast site which is part of a roaming arrangement, two operators would not be detected. Rather, the practical effect of roaming is that customers of operator A become entitled to use the spectrum allocated to operator B. There is no physical change to the mast site, and there are no technical modifications to the site at all. All that happens is that customers of operator A have changes made to their handset, meaning that their handsets become able to connect to operator B’s spectrum. In other words, this kind of sharing involves a change to one’s phone, and not to a mast. 26. Once that is understood, one can see why Ramsey J in Arqiva found that network roaming did not breach any covenant under the relevant agreements not to share, as he decided at paragraph [195] of his judgment. The same reasoning would, I think, apply to MVNO use. 27. However, that paragraph of the judgment appears to further contemplate that there might also be no relevant breach where there is “network consolidation”, which, from the judgment, appears to be the use of a single set of equipment shared between two or more MNOs for the provision of their networks. 28. That seems to me to be a more arguable issue. At this point, we have to revisit our landlord and tenant terminology. Enter Landlord & Tenant W hat W e A ll Kn o w, A nd W ha t W e A ll K no w W e Don ’t Kn o w 29. A standard commercial lease will naturally restrict alienation rights. A well-drafted lease will restrict (usually in relation to the whole or part, and with specified group Who’s Line is it Anyway? November 2014 !11 Oliver Radley-Gardner company exemptions) assignments, subletting, parting with or sharing possession, or parting with or sharing occupation. 30. Although we use those phrases day in and day out, we are still unclear what 21 some of them exactly mean. What amounts to “possession” has puzzled lawyers from Roman times onwards. The Courts have regularly refused to define what “occupation” means. 22 Given that the concepts remain unclear, it is then not a surprise that the border between occupation and possession, and between parting with possession or occupation of part, and sharing possession or 23 occupation, is difficult to map with any precision. We are in the domain of the 24 “elephant” test, i.e. can’t describe it, but we know it when we see it. 31. Those problems of interpretation are significant, as the Courts are clear that (i) alienation covenants are to be interpreted restrictively and (ii) consequently, if only some forms of alienation are prohibited, then others will be permitted. It therefore becomes critical to understand whether a particular arrangement amounts to a parting with or sharing arrangement, and whether what is being done amounts to possession, or mere occupation, or something even less than that. 32. We do know what such provisions are supposed to do, however. One can of course readily understand that a restriction on assignment is intended to prevent a tenant from foisting an unwanted and unsuitable assignee onto the landlord. Sub-letting restrictions are there to protect the landlord in the case of a failure of the intermediate leasehold interest. 25 Restrictions on parting with possession or occupation are designed to ensure that there is nota disconnect between the tenant and the person beneficially occupying, so that the landlord is able to 21 It is perhaps quite revealing that a number of famous lawyers made their names trying to come up with definition of the word “possession”. Hodgson v Marks [1971] Ch 892, at 932; Graysim Holdings Ltd v P&O Property Holdings Limited [1996] A.C. 329; indicia were identified by the Court of Appeal in Wandsworth LBC v Singh (1991) 62 P.&C.R. 219. 23 See the discussion in Akici v J.R. Butlin [2006] 1 WLR 201. Who’s Line is it Anyway? !12 November 2014 a workable 22 24 Oliver 25Or atRadley-Gardner least we think we know it. For property lawyers, this might as well be called the “house” test. Ross, Commercial Leases, [H3]. Who’s Line is it Anyway? November 2014 !13 Oliver Radley-Gardner control and manage who is making use of the premises directly. 26 Restrictions on dealing with part only of premises are designed to protect landlords from having a multiplicity of parties on-site, and a fragmentation of the use and control of the demised premises. This of course creates the risk that the various users of a site may come to claim rights against the landlord, whether under statutory security of tenure regimes or otherwise. Applying That Back To Telecoms 33. Can active sharing be accommodated within the already unclear vocabulary of landlord and tenant? Arqiva appears to me to support the view that the traditional alienation covenants will not be breached by the mere presence of a nonlessee’s merely electronic footprint. However, Arqiva was an expedited trial, and this issue was one of a myriad of issues that was considered. How arguable is the contrary position? 34. In my opinion, it is arguable that occupation, at any rate, can be interpreted as covering the beneficial use of a site by an operator. For RAN sharing, the argument would run something like this: a. The point of covenants regulating occupation is to ensure that a landlord knows who is on site. A multiplicity of occupiers can give rise to all sorts of problems, of security, or access and so on. b. The mischief that such covenants are aimed at is present in relation to mobile phone masts i. A mast is an operator’s apparatus (and hence liable to ECC 27 protection) even if it is not owned by that operator. This leaves open the possibility that a single, shared mast could in principle 26 27 Ross, [H4]. See the discussion in Wayne Clark, Blundell Lecture, paragraph 33. Who’s Line is it Anyway? November 2014 !14 Oliver Radley-Gardner qualify for separate ECC protection in respect of a number of 28 operators. ii. There is at least a question mark over the paragraph 21 rights of occupier-operators. iii. An occupier-operator who is counting on a site is more likely to want to exercise paragraph 5 rights if that site becomes jeopardised. c. If there is ECC protection for an occupier-operator, so that it is in a position to resist the removal of the apparatus even if that belongs to a third party, that appears to me to create a level of potential control that is sufficient to justify a finding that there is occupation. 29 d. Even if there is no such protection, it appears to me that one could argue that the only sensible way to “occupy” a telecommunications mast, apart from owning the apparatus, is by using it to host one’s network. 35. Again, I must emphasise that the above is an argument, and much will turn on the precise nature and extent of the sharing involved. What can be said with some force is that our tried and tested lease covenants have in mind the paradigmatic situation of a tenant in physical occupation of a site, and do not clearly, and therefore adequately, cover the more modern phenomenon of a merely virtual presence. 36. It follows from that, that those advising landlords on new leases, or lease renewals, will need to give consideration to the alienation provisions inserted, and to consider whether the drafting requires modernisation to control use of a site by a multiplicity of operators. It may be that, in relation to mast sites, concepts such as “occupation” or “possession” are inappropriate, or, at least, insufficient, and that the focus of such clauses should, instead, be upon the realities of the economic exploitation of the site by the tenant MNO, sharer MNOs and MVNOs. 28 29 An MVNO would of course only be protected if they are an “operator” within the meaning of ECC. An argument that appears to me to apply equally to network roaming arrangements. Who’s Line is it Anyway? !15 November 2014 Oliver Radley-Gardner 37. It also follows on from the above that consideration should also be given to questions of value. If it transpires that mast sites are capable of use in a manner not contemplated at the date of the lease, and if such use is valuable to the lessee-operator, then, the other side of the coin is that such capability may need to be reflected in value on review of rent or lease renewal. OLIVER RADLEY-GARDNER Who’s Line is it Anyway? November 2014 !16 Oliver Radley-Gardner APPENDIX: EXTRACT FROM ARQIVA The operation of a Mobile Communications Network 31. The evidence given by Mr Davidson on behalf of Arqiva and by Mr Smith and Mr Bennett on behalf of the Defendants shows that the Mobile Communications Network has a number of features. The Network can be divided into two component networks, the Radio Access Network (RAN) and the Core Network. The RAN consists of a Base Transceiver Station ("BTS") for the 2G system and a Node B for the 3G system. Those are located at the site of a mast with a connection to the mast antenna and controlled by Base Station Controller ("BSC") for the 2G system and Radio Network Controller ("RNC") for the 3G system. Together the BTS and the BSC/RNC are described as the Base Station Subsystem ("BSS"). 32. Within the Core Network there is a series of nodes, including the Home Location Register ("HLR") and the Visitor Location Register. The HLR contains details of all customers permitted to use the network and every SIM card on the network. It enables the network to identify where a customer is and to send signals to that customer. There is also a Gateway Mobile Switching Centre ("GMSC") and a Mobile Switching Centre ("MSC"). The GMSC forms the link between separate networks and permits calls to be made by a customer on one network to a customer on another network. The MSC performs the same "exchange" function within the network. The Signal Transfer Point ("STP") is used to route voice and data traffic between the MSCs and GMSCs within the same network and between networks. 33. When a call is made on a particular network, the antenna on a mast receives electromagnetic energy in the form of radio waves on licensed frequencies known as "spectrum". The signal passes through the BTS to the BSC and then through circuits known as Backhaul to the Core Network. The Core Network then transfers the call or data to the Destination Network where the call is connected to the ultimate user. 34. Each mobile phone handset has a SIM card which contains customer subscriber data, the customer's International Mobile Subscriber Identity ("IMSI" – a unique identifier of a customer) and, amongst other data, roaming preferences. Each network broadcasts a unique identifier code, the Public Land Mobile Network Code ("PLMN") which the handset will search for to connect to the network. The first five digits of the IMSI correspond to the PLMN code of the network. Who’s Line is it Anyway? November 2014 !17
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