A recent report released by Mobile UK – a trade body which represents major network operations like Three, EE, O2, and Vodafone – raised concerns about the potential shortfall in achieving widespread adoption of 5G technology. 

According to Mobile UK, without significant changes from the government to support 5G upgrades, the UK may risk falling behind in the global race for advanced mobile broadband infrastructure. 

According to the report titled Rebalancing Act: Unlocking the potential of the UK’s Mobile Industry, the value generated by mobile technology is estimated to be £5 for every £1 invested by mobile operators. 

Furthermore, the potential economic boost from 5G networks could reach £159 billion by 2030. However, achieving government targets, such as providing ‘standalone’ 5G technology to all populated areas by 2030, is now at risk due to current trends.

The report outlines several recommendations aimed at addressing the challenges hindering 5G deployment. First is following through on policies, and implementing policies outlined in the Wireless Infrastructure Strategy, such as reducing annual licence spectrum fees and reforming traffic management regulations.

Next would be removing barriers to network rollout, and exploring policy actions to streamline the network rollout, including adequate funding of the planning system. Fiscal measures such as introducing fiscal measures like business rates holidays for new mobile infrastructure to improve the investment outlook for Mobile Network Operators (MNOs).

Finally, supporting private capital and considering additional actions to support private capital deployment by MNOs, taking cues from interventions in other territories.

However, potential obstacles to implementing these recommendations exist. The government and Ofcom have historically been reluctant to slash licence fees, citing strains on public finances. Additionally, changes to Net Neutrality protections and planning regulations require complex legislative processes.

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While progress has been made in softening planning rules, balancing these changes with public opinion remains a challenge, particularly in an election year. The idea of a business rates holiday on new mobile infrastructure is familiar but complex, given the challenges associated with the Valuation Office Agency.

The report indicates that the government may delay significant changes until after key events, such as the Vodafone and Three UK merger and upcoming 5G spectrum auctions. However, the evolving political landscape could impact the government’s receptiveness to operators’ demands in the future.

Commenting on the report, Hamish MacLeod, CEO of Mobile UK, 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 rollout and get the UK back on track to achieve its targets.”