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Mobile network operators have said a £25bn “investment gap” is putting the government’s 5G plans at risk.
Mobile UK, which represents all the major operators – O2, Three, EE and Vodafone – said that while the industry invests around £2bn a year on infrastructure, urgent change in the “investment environment” is required to meet targets.
In a report, the body said the £25bn gap is particularly integral to the roll-out of advanced 5G Standalone networks, which are able to support a higher density of devices, as well as ultra-low-latency use cases. Currently, much of the 5G network relies on modifications to pre-existing 4G towers.
The findings suggest that crucial infrastructure upgrades are too reliant on an under-resourced planning system. There is also “a growing social demand” on the industry – such as providing low tariffs to vulnerable people – that do not receive enough taxpayer support to meet.
The report claims that for every £1 invested by the operators in infrastructure, around £5 is generated in the wider economy, with some estimates suggesting that 5G technology could be worth £159bn in annual economic productivity by 2035.
Commenting on the report, Mobile UK CEO Hamish MacLeod said: “As a country we are not making enough progress to meet the objectives of the Wireless Infrastructure Strategy which acknowledges the power of mobile technology and the ambition to be a leader in 5G.
“Reductions in spectrum licence fees, reforming traffic management regulations and business rates holidays for new mobile infrastructure would incentivise investment. In addition, adequately funding the planning system and appointing digital champions in local authorities would help streamline network roll-out and get the UK back on track to achieve its targets.”
The Wireless Infrastructure Strategy was introduced last year and details the government’s efforts to bolster telecommunications as a critical technology needed to meet goals to make the UK a science and technology superpower by 2030.
Mobile UK said that private capital currently funds the mobile sector almost entirely. But stagnant revenues, cost pressures and the need for continuous infrastructure upgrades are hindering investment potential.
In February, EE confirmed it had switched off its final 3G mobile site as it shifts its entire network over to newer technologies.
Rival networks have also started retiring their 3G infrastructure. Vodafone started in June last year in a bid to reallocate some 3G spectrum to 4G and 5G, while Virgin Media O2 plans to retire its network by next year.
