Recently, an ITC Lane Cove Chat reader asked if a Telco called GigaComm had contacted anyone living in an apartment complex about installing high-speed internet infrastructure in their apartment building.
When the reader asked their strata manager for further information, she discovered that Telcos could install internet fibre and cabling infrastructure without the Owners Corporation consent if the Telco followed a process in the Telecommunications Act.
ITC had not heard about this before, and with over 50% of Lane Cove residents living in apartments, this was an issue worth investigating.
When we started our research on Telcos installing high- speed internet cabling on apartment buildings, we read numerous articles on apartment chat forums, including – How Telcos Can Bully Their Way into Your Apartment Block.
It also became apparent a notice will come out of the blue and will not be generated because an owner or tenant has requested to be connected to high-speed internet.
So, what do you do when a Telco contacts your owners corporation with an official notice stating the Telco will be installing fibre and cabling infrastructure in your building?
What rights does the owners corporation have to stop a telco? The answer is not much; the Telecommunications Act 1997, gives Telcos the right to enter apartment buildings to install their infrastructure.
The Government enacted legislation to make it easy for Telcos to roll out internet infrastructure.
It is not just the big Teclo companies demanding access to apartment buildings. Nearly 350 registered carriers are now under the Telecommunications Act, and not all will have the same resources and competencies.
How Does the Process Start?
The Telco must serve a notice on the owners corporation. The notice is called a land access and activity notice (LAAN)
The LAAN must include a start date for the activity and be provided at least ten business days before the start date.
Why Would an Owners Corporation Object to High-Speed Internet?
Some residents may think having high-speed internet cabling in the building is a great idea. However, issues can arise if the infrastructure is not installed correctly.
There could be issues such as:
- Waterproofing and Roof Membranes damage
- Non-Compliance with building codes and building standards.
- Damage to common property during the installation works
- A fire risk if cabling is not correctly installed.
ITC spoke to Karen Stiles, the Executive Director of the Owners Corporation Network, an organisation that helps strata owners navigate strata living.
Karen Stiles told ITC that OCN has heard some horror stories of Telcos who engage contractors but do not supervise them to ensure they correctly complete the installation.
She noted that Telcos are sending letters ‘on spec’ to buildings with flat roofs.
Some Telcos have made unreasonable demands for emergency access to critical infrastructure. Karen said some owners corporations feel bullied and powerless. She also said Telcos do not want to discuss compensation or indemnification for any damage caused by the works.
However, Karen Stiles also makes the point that if you find a Telco you can work with, it may not be a wrong move for your building to have high-speed internet cabling.
She told ITC that an OCN member with a building in Pyrmont negotiated the relevant indemnity and compensation and had high-speed internet connected to the building. The building was mostly tenanted, so it was a selling point that it had high-speed internet.
Karen told ITC that her building in Neutral Bay was approached by a Telco which offered the following upfront:
- 20-year term
- Make a good clause upon the expiry of the agreement
- Separate electricity metering
- Rent of $15k pa with a 2% annual increase
We contacted GigaComm and asked them why they were approaching apartment buildings on spec. A spokesperson said:
Like all telcos, we follow the Telecommunications Act which sets out the rules for both the telecommunications provider and the building owners and occupiers, under which buildings are accessed. This is the same for other utility services such as electricity, where similar legislation exists.
GigaComm’s mission is to give as many Australians as possible access to the latest technology to access ultra-fast internet.
We work closely with Owner’s Corporations and strata management companies and where possible will discuss the benefits, technology and installation approach clearly with all parties before commencement.
What Should an Owners Corporation Do When They Receive a LAAN?
Stephen Moore is an expert in dealing with Telcos and understands how a LAAN notice can be confronting to Owners Corporation.
According to Stephen Moore from EESH Consulting, you should do three things.
- Act Promptly
- Engage an Expert in Telco Negotiations
- Know what your owners want – some owners may wish to the infrastructure.
Stephen says that if you do not act fast and respond to the LAAN, an owners corporation cannot formally prevent the Telco from accessing its common property and installing its equipment.
On What Grounds Can an Owners Corporation Object?
There are only a limited number of grounds upon which an owner corporation can object.
According to the Telecommunications Ombudsman, the only grounds for objecting to a LAAN are:
- “Using the objector’s land to engage in the activity” (Section 4.30(a) of the Code). In other words, I don’t think that the Carrier needs to use my land to install the facility. There may be a suitable alternative location on other ground that the Carrier could use instead.”
- “The location of a facility on the objector’s land” (Section 4.30(b) of the Code). In other words, I don’t think that the Carrier needs to install the facility in the proposed location on the land. There may be a suitable alternative location on the ground that the Carrier could use instead.”
- “The date when the carrier proposes to start the activity, engage in it or stop it” (Section 4.30(c) of the Code); “The proposed timing of the activities is exceptionally inconvenient (or the proposed duration is unnecessarily long), and I want to suggest timing and duration for the activities that is more reasonable or more suitable to me.
- “The likely effect of the activity on the objector’s land” (Section 4.30(d) of the Code); In other words, the proposed activities will have an impact on the condition of my land (rather than the value or usefulness of my land), and I want the Carrier to do something about it.”
- “The carrier’s proposals to minimise detriment and inconvenience, and to do as little damage as possible, to the objector’s land” (Section 4.30(e) of the Code). In other words, I am concerned about a specific type of detriment, inconvenience or damage to the land that the proposed activities could cause, and I don’t think the Carrier is doing enough about it.”
Going Ahead with the Installation
If you decide to go ahead with the installation, there are a few things, you can do to ensure the owners corporation is protected. Ask the Telco:
- to provide detailed plans.
- a full list and contact details of all contractors
- to provide certificates of currencies for public liability for Telco and contractors.
- for an indemnity against any loss or damage suffered by the owners corporation and damage to the building.
- to lodge a bond against damage.
- for a written guarantee that their installers will maintain all existing infrastructure and will rectify any interference with current infrastructure.
- what compensation they will be offering the owners corporation.
If you ask for the above, the Telco may think your building is too hard to work with, and they might walk away.
The number one thing to remember is not to ignore the LAAN and respond quickly with questions or objections.
Have you had this happen in your building? We would love to hear your experiences.
If you live in an Apartment, you may want to look at joining the Owners Corporation Network. They offer the following:
- Access to the member online discussion forum to share knowledge, experiences, and trusted supplier recommendations.
- Access to the Members Portal full of valuable resources
- Monthly email updates on current issues
- Two free member networking meetings per year to discuss hot topics.
- Access to webinars on a wide range of strata-specific topics
- Discounted tickets to OCN live events
- Alerts on cost saving initiatives and grant opportunities for your scheme
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