According to analysts and industry executives, the UK is at risk of falling behind in the global race to implement high-speed fifth-generation (5G) mobile networks. Despite being one of the first countries to start commercially implementing 5G in 2019, limited investment from mobile phone operators and the government’s ban on Huawei equipment have caused setbacks. Ofcom, the telecoms regulator, has reported that while 82% of places where people live and work have 5G mobile coverage from at least one operator, only 22% are covered by all network providers. In terms of 5G availability, the UK ranks 39th out of 56 advanced and developing markets. When it comes to 5G download speed, the country ranks 21st out of 25 developed markets, slower than France, Germany, and the Netherlands. Despite having the highest sales of 5G-capable smartphones in Europe, the UK has yet to realize the full potential of 5G and risks losing its position as a leader in the industry.
The slow expansion of 5G networks in the UK is concerning considering the clear economic benefits and the government’s goal of having high-speed mobile networks. According to Assembly Research, 5G could contribute £173 billion to the UK economy in the next decade through improved productivity and the development of technologies like connected cities and driverless vehicles. 5G enables driverless cars to receive real-time information and respond quickly to unexpected actions, making transportation safer. It also has the potential to help cities manage energy supply more effectively and become more sustainable.
However, despite these economic benefits and goals, the UK has not made significant progress in rolling out 5G networks as planned. Some industry executives attribute the slow rollout to the government’s decision to ban Huawei from the country’s 5G networks due to national security concerns. This decision caused a delay in deployment for mobile operators. Additionally, there is a lack of public demand for 5G, with many mobile users feeling that the technology has been overhyped and not delivering noticeable improvements in speed or reliability.
Furthermore, the investment numbers for 5G in the UK do not currently add up. Operators are expected to spend only £9 billion by 2030 on 5G rollout, falling short of the estimated £34 billion needed to offer services that rely on 5G networks, such as driverless cars. The proposed merger between Vodafone and Three, which would reduce the number of network operators in the UK from four to three, has raised concerns about reduced competition and potentially increased prices for consumers.
Overall, the fate of the UK’s 5G rollout is uncertain. Mobile operators are already behind schedule in proving the value of high-speed networks, and the lack of significant investment poses challenges. The UK must find the right killer application for 5G that will drive return on investment and propel the country to be a leader in the industry.
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