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Windfall for BW?


Josher

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This case (not involving BW) has been rumbling on for a while - looks like it is coming to a head now.

 

A LEGAL battle between a high-speed internet company and the owners of an 18th century canal has gone before three of the country’s most senior judges here (Warrington Guardian).

 

As the article says, "The case is being closely watched by land owners and internet providers as a ruling in favour of Bridgewater Canal Company could have huge financial consequences".

 

Surely the most obvious beneficiary would be BW - as I assume that they have similar opportunities but on a much larger scale?

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John this is the Bridgewater Canal which doesn't come under BW's jurisdiction.

 

I believe that there is a question as to whether the case will set a precedent that will be of use to BW.

 

The telecoms firm currently pays Peel Holdings for a wayleave to run cables under the towpath. The amount of that wayleave having been determined when the cables were laid (possibly including some index linking).

 

Such agreements make sense, because a company doesn't want to lay cables, then find that the price for the wayleave goes up to ten times the amount the next year, once it is a captive audience.

 

It also makes sense that having obtained a wayleave, the telecoms company can replace the cables without the landowner being able to demand a change to the rent.

 

The issue here is that;

 

  • The teleco believes its wayleave allows it to run whatever it wants under the towpath for the price stated.
  • Peel holdings say that the wayleave is for copper cables, not fibre, and that if they wan to run fibre, they should pay for a different wayleave (at a higher price)

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