A recent report by the National Audit Office (NAO) shows that progress on the initiative, known as the Shared Rural Network (SRN), has been slower than anticipated. 

The SRN launched in March 2020 with the ambitious goal of achieving 95% 4G coverage across the UK landmass by December 2025, and the recent delays are casting doubt on whether it will meet its target at all in the designated timeframe. 

“It is unclear whether the Shared Rural Network programme will achieve its coverage target on time; costs are higher than anticipated; and government has not clearly articulated the benefits of aspects of the programme, including increased connectivity in sparsely populated areas,” said Gareth Davies, head of the NAO.

According to the report, the only major mobile network operator (MNO) to meet its interim coverage target was EE. Various factors have contributed to the delays, including prolonged negotiations over mast locations, site sharing agreements, and service procurement.

The programme is a collaborative effort between the Department for Science, Innovation, and Technology (DSIT) and the UK’s leading MNOs including EE, Three, Virgin Media, O2, and Vodafone.

Cost projections for the program have also surged due to inflation and other factors, raising concerns about the ability of MNOs to deliver the required level of coverage within the existing funding framework. The SRN program is supported by £501 million of government funding and £532 million of private sector investment, totaling £1.033 billion.

Under the terms of the grant agreement, MNOs are expected to bear any additional costs. However, if the costs exceed certain thresholds, MNOs may not be obligated to meet individual targets, posing a risk to the overall objective of achieving 95% mobile coverage across rural areas.

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Despite challenges, stakeholders are still welcoming the plans for future mobile connectivity, particularly to roll out 5G infrastructure across populated areas by 2030.

“Demand for mobile data access is expected to increase as data-intensive services become more popular and new technologies enable new uses, and government has set out a clear ambition for improved connectivity,” continued Davies.

The DSIT’s Wireless Infrastructure Strategy outlines a roadmap for investment and innovation in 5G technology, projecting significant economic benefits ranging from £41bn to £159bn from 2021 to 2035.

“As government develops its 5G strategy, it will need to more clearly define what it is aiming to achieve in different parts of the UK and economic sectors, so that limited resources can be targeted where they deliver most value,” said Davies.