Part Three – The Digital Revolution (Part Six)

Economic Unit

1.2 Wireless Connectivity

Introduction

Wireless connectivity will lay the foundations for a brighter digital future for the UK.

5G could add around £159 billion to the UK economy by 2035, increasing productivity and strengthening the development of connected cities.
Businesses across the country are aware of these benefits and are calling for an accelerated rollout of 5G so that they can take advantage of it.
This is particularly important in underserved and poorly connected areas of the UK:

According to findings from the Country Land and Business Association, eighty percent of rural business owners believed that improved connectivity would be the single greatest improvement for their businesses.

But the current situation in the UK is as follows:

Connectivity is still uneven and unstable, and the rollout of 5G is lagging behind competitors.
The EU 5G Observatory reported in spring 2023 that the UK ranked 17th out of 28 EU countries in terms of 5G population coverage.
According to Open Signal, the UK ranks 49th out of 56 countries in terms of average download speed, and trails behind Germany, France, and the United States.
At present, investors lack the confidence and incentive to invest in the advanced industries of the future.

This threatens businesses’ ability to fully seize opportunities and may prevent the UK from becoming a global leader in areas such as artificial intelligence, machine learning, autonomous vehicles, and digital hospitals.

Background: What is the UK’s current situation?

In April 2023, the government published its Wireless Infrastructure Strategy, presenting a vision for the UK to have the fastest and most reliable wireless coverage possible.
The strategy included the goal of achieving 5G standalone coverage for all populated areas by 2030.
An additional £40 million was allocated to boost the adoption of 5G services, including the creation of ten “5G Innovation Regions” across the UK.
In addition, a £100 million investment was dedicated to the future of 6G through research and development.
The strategy also reaffirmed the target of 95% 4G coverage by 2025 as part of the Shared Rural Network agreement.

Alongside the publication of the Wireless Infrastructure Strategy, DSIT also announced:

Rural Ten Point Plan:

Supporting rural communities by combining key government actions such as mobile coverage reporting, 5G adoption campaigns, the Gigabit project fund, and others.

An £8 million fund:

Providing capital support for connecting remote premises.

While this strategy is an important step toward creating a more attractive policy environment for investment in wireless connectivity and improving the quality of the UK’s telecoms networks, much work remains to achieve its goals.

Progress so far

The strategy highlighted progress made over the past five years in delivering world-class fixed and wireless networks across the UK, including:

• A £5 million investment through Project Gigabit to deliver gigabit broadband to at least 85% of premises by 2025.

• A £1 billion agreement with mobile network operators to support rural communities and ensure over 95% 4G coverage by 2025 through the Shared Rural Network.

• A 5G rollout aiming to ensure that most people have access to 5G by 2027.

• Strengthening network security by implementing the Telecommunications Security Act 2021 and the 5G Supply Chain Diversification Strategy.

Connectivity status across the UK

According to Ofcom’s 2023 annual Connected Nations report:

4G Coverage:

• 93% of the UK landmass has 4G coverage from at least one operator.

• 71% of the landmass has 4G coverage from all operators.

• However, 7% of the UK still has no 4G coverage at all.

Regional disparities:

Coverage is better in urban areas than rural ones.
Countries and regions with a higher proportion of rural areas—such as Scotland, Wales, and North East England—have the lowest 4G coverage.