Original article ISPreview UK:
Broadband and telecoms giant BT (EE) has published a new report from Assembly Research, which suggests that the UK is one of the hardest countries for building new mobile broadband infrastructure and has called for more reform of the planning rules (e.g. allowing taller masts). The prize, claims the report, could be to unlock up to £230bn in economic benefits by 2035.
The current Labour government previously made clear that they would be making a “renewed push to fulfil the ambition of full gigabit and national 5G coverage by 2030” (here). Mobile operators have thus not been shy about producing their own wish lists to support this (here, here, here, here and here), which has often been reflected in calls for a more flexible planning system, lower licence fees for radio spectrum and easier engagement with local authorities.
NOTE: Ofcom recently reported (
here) that geographic 4G mobile coverage in the UK had increased to a range of 88-90% (up from 81-88% a year ago) and geographic (outdoor) covered by at least one operator had reached 62% (up from 50%).
However, the story so far has been one of disappointment. Despite their lobbying, the government’s recently introduced Planning and Infrastructure Bill (PIB) and the previous Autumn Budget 2024 largely seemed to ignore mobile networks, preferring instead to focus on other sectors.
The newly announced 10-year Infrastructure Strategy did suggest some improvements for mobile connectivity, but this mostly centred around implementing existing changes and was otherwise rather light on detail.
The new report from BT and Assembly Research (here) claims that taking a more flexible approach to mobile networks could deliver big economic benefits. For example, it indicates that improved 5G Standalone (5GSA) coverage could enable more than £88bn in economic growth through the industrial adoption of new technologies – such as AI and machine learning (thanks to the significant increase in network capacity).
Key Areas of Positive Economic Impact
➤ Road and Rail: Investing to improve rail coverage could result in £12bn in additional productivity by 2035, while improving road connectivity to 100% coverage could result in a £45bn opportunity for the UK through enabling autonomous vehicles.
➤ Rural Economy: Investing in improved 4G and 5GSA coverage could add as much as £3bn into the UK’s rural economy by 2035.
➤ Built up areas: In addition to the potential £88bn in growth from new technologies, improved 5GSA coverage could enable as much as £26bn of added economic value from accelerated drone adoption by 2035. In the same timeframe, an added £9.5bn could be unlocked for the UK’s broadcast, digital advertising and consumer media sectors.
➤ Mobile Backup: The findings also highlight that, if more reliable UK mobile networks were available, increased use of mobile backup options could become more attractive for some businesses. Doubling the take up of these options would result in recovery of c.£7.9bn in productivity as a result of reduced down time. The research also shows a further £37bn of benefits could be unlocked through supporting the modernisation of the energy grid.
However, BT argues that the current planning system “adds significant time and cost when we try and deploy new network infrastructure“, despite the “clear community benefits which could be generated“. The operator adds that the “amount of spectrum we can use to improve coverage and build up cost-effective capacity is constrained – with too much spectrum being used inefficiently elsewhere” (the latter point is debatable, depending on context).
The operator thus calls for doubling the level of spectrum available to mobile operators to help “rapidly improve services across the country” (i.e. opening up of the 3.8-4.2GHz, upper 6GHz and 600MHz spectrum bands) and, once again, calls for reform of the planning system to “reduce unnecessary roadblocks” and help accelerate network deployments. “A long-term vision for accelerating SME and public sector tech adoption is also critical to creating a truly digital-first UK“, said BT’s report.
Some of the examples given for all this includes amending guidance to “prioritise the public interest in improved mobile connectivity“, cutting annual licence fees for mobile spectrum, further softening net neutrality rules, cutting red tape in planning admin (e.g. lengthy applications to the Building Safety Regulator are often needed to make minor changes to rooftop apparatus on high rise buildings – also impacts FTTP broadband builds) and enabling monopole masts of up to 20m in height (currently 15m).
Such changes, claims BT, could help to expedite the roll-out of individual sites by 12 months, while also cutting the operator’s costs.
Howard Watson, BT Group’s Chief Security and Networks Officer, said:
“We’re proud to be the biggest investor in the UK’s networks, having spent billions in the last five years to deliver improved connectivity for communities in every corner of the UK. But the way we use mobile connectivity is evolving, and as the demands on network capacity increase and retail pricing remains comparatively low, greater support is needed to unlock more private sector investment.
To deliver the networks the nation needs for the future, we need greater collaboration with the government and regulator, as well as support from local communities and councils – so that everyone in the UK can reap the life-changing benefits connectivity brings. Reforming planning laws and opening up spectrum access would help accelerate the deployment of these critical networks.
This report proves that delivering secure, reliable and powerful mobile networks brings enormous value to consumers and businesses, fuelling the UK economy.”
As usual, it’s wise to take such forecasts with a big pinch of salt because trying to accurately gauge the economic impact of deploying faster mobile broadband networks is notoriously difficult. Part of this stems from the fact that most users won’t be starting from a point of having zero data connectivity, and we’re all very different in our consumption requirements.
One of the biggest problems above is that mobile infrastructure has always been somewhat of a hot potato topic for politicians and the electorate. Many people often object to the construction of new mobile masts and related kit, but this frequently occurs at the same time as others are calling for improvements in mobile performance and coverage. Trying to balance such conflicting viewpoints can be.. tricky.
Some of the things that the new report desires also stray into tedious areas like Net Neutrality (i.e. measures to prevent serious blocking or slowing of access to legal websites / internet services). This can be very divisive topic, even at the best of times, and is one that has only recently been reviewed by the regulator.
Elsewhere, Ofcom are currently looking to reduce Annual Licence Fees (ALF) in some radio spectrum bands, albeit not by as much as mobile operators really want (here); it remains to be seen whether the government might encourage the regulator to opt for a more radical change on this front.
The reality is that BT probably won’t get everything on their wish list, particularly as the government will be keen to avoid doing anything that might make them even more unpopular than current polling suggests. But it will be interesting to see how much the government are willing to bend, particularly given the importance many of us place on our ability to access good quality mobile signals.
Lest we forget that some rival operators, such as the recently merged Vodafone and Three UK, are already making a big investment to deliver major 5G improvements (here). Ofcom are also due to auction off a large chunk of millimetre wave (mmW) radio spectrum frequency in the 26GHz and 40GHz bands for 5G and future 6G services (here), although this will mostly only benefit busier/urban areas and some FWA links.
