UK in danger of falling behind on 5G, analysts warn

United Kingdom

Analysts and industry professionals claim that the UK is at risk of falling behind in the worldwide competition to implement advanced fifth-generation mobile networks swiftly. These networks are essential for supporting the government's goal of transforming Britain into a leading tech hub similar to Silicon Valley.

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Even though the UK was among the pioneers in adopting 5G technology for commercial use in 2019, it is currently facing a setback due to insufficient funding from mobile phone companies and the government's prohibition on utilizing Huawei's equipment, a Chinese telecommunications manufacturer.

In May, Ofcom, the agency responsible for overseeing telecommunications, reported that 82 percent of locations where people reside and work in the UK have access to 5G mobile connectivity through at least one network operator. However, the percentage drops significantly to 22 percent when considering areas that are covered by all network providers.

According to a June report from OpenSignal, a research firm, the United Kingdom ranks 39th out of 56 advanced and developing markets in terms of 5G availability. This metric measures the proportion of time mobile phone users are connected to specialized networks instead of other wireless technologies. The report highlights that in the UK, this percentage stands at a mere 10.1.

According to a report published in February by Ookla, a company specializing in analyzing mobile networks, the United Kingdom's 5G download speed was ranked 21st among 25 developed markets. Surprisingly, it was slower than countries like France, Germany, and the Netherlands. This finding is noteworthy considering that the UK leads Europe in terms of sales of smartphones capable of 5G.

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According to Paolo Pescatore, an analyst at PP Foresight, a research company, the full potential of authentic 5G technology has not yet been achieved. Telcos have invested a significant amount of money and efforts to set up 5G networks, which has caused a great deal of excitement. However, it can be argued that the UK has lost its position as a leading country in the realm of 5G.

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"We were among the first to embrace 5G technology, but now we are lagging behind," stated Andrea Dona, Chief Network Officer of Vodafone UK. He further expressed that despite previous lessons learned from the sluggish implementation of past wireless technologies, Britain has not fully embraced this new initiative.

The prolonged growth of 5G networks in the United Kingdom persists despite evidence of definite economic advantages and the government's objective of establishing fast mobile networks.

According to Assembly Research, a telecoms consultancy, the potential value of 5G to the UK economy in the next ten years could reach £173bn. This growth will mainly stem from enhanced productivity and advancements in various areas such as connected cities, autonomous vehicles, and other related technologies.

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The introduction of 5G networks can facilitate the communication between driverless car systems, allowing them to quickly receive and react to unexpected actions from pedestrians, ensuring a swift response time.

5G can also aid in the efficient management of energy resources in urban areas, promoting sustainable practices.

In the previous year, the authorities announced that they had accomplished their objective of providing a fundamental 5G signal by 2027. This was made possible through the use of specialized masts and radio spectrum, although a significant portion of the UK population still relies on 4G networks. Additionally, government officials have established a new aim to ensure that all inhabited regions are encompassed by 5G networks by 2030.

During his Autumn Statement, Chancellor Jeremy Hunt emphasized the significance of 5G technology, while also underscoring his commitment to fostering economic progress through innovation.

"I aspire to merge our technological and scientific expertise with our powerful financial offerings, with the aim of transforming Britain into the upcoming global hub for innovation and entrepreneurship," he expressed.

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However, according to Sylwia Kechiche, an analyst at Ookla, the 5G network in the UK falls within the lower performance range. This poses a potential threat as it could result in slower economic development for the country.

Executives from the mobile industry emphasize that the slow implementation of 5G networks in Britain can be attributed to the government's move in 2020 to remove Huawei from the equation due to concerns about national security.

“That completely halted the implementation for the operators,” Matthew Howett, CEO of Assembly Research, remarked.

Furthermore, there is minimal indication of a widespread demand for 5G amongst the general public. A survey conducted by Uswitch, a price comparison service, revealed that one out of every six mobile users believed that the impact of 5G had been exaggerated. In addition, less than half of the respondents reported experiencing significant enhancements in speed or reliability after upgrading their devices. This survey was published in October of the previous year.

The advantages of 5G vary across different regions of the UK. A study conducted by OpenSignal in March revealed that the increase in download speed when switching from 4G to 5G was minimal in London compared to other urban areas.

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According to Uswitch, what worries consumers the most about exaggerated claims is the disparity between the groundbreaking experiences that were promised and what we can actually accomplish with our devices.

Mobile service providers stated that the financial figures for 5G were not sufficient at present. In the United Kingdom, these providers are projected to allocate approximately £9 billion by the year 2030 for the implementation of 5G technology. However, this amount falls significantly short of the estimated £34 billion required to provide services that are dependent on these networks, such as autonomous vehicles, as reported by the Digital Connectivity Forum, an industry advisory committee, in September of the previous year.

Vodafone and Three, who are looking to combine their mobile services in the UK, have cautioned that if regulatory bodies impede their planned merger, the advancement of 5G technology will suffer from reduced investment.

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The confluence would diminish the count of UK network providers from four to three: the amalgamated corporation, alongside EE and O2. The consumer organization Which has voiced apprehension regarding the potential decline in options for customers, ultimately leading to an escalation in prices.

Vodafone and Three have made a commitment to contribute a whopping £11 billion towards the development of a highly advanced 5G network in the United Kingdom. This venture aims to establish one of the most technologically advanced networks in Europe.

The CEO of Three UK, Robert Finnegan, stated that this combination is primarily focused on enhancing the quality of the UK's infrastructure.

But Pescatore disputed the claim that the outcome of the UK's 5G implementation was dependent on the merger. He argued that mobile operators were already significantly delayed in demonstrating the benefits of high-speed networks.

Numerous experts in the field expressed that 5G had been purposely designed to cater to the potential business needs of tomorrow.

Jeanie York, the chief technology officer at Virgin Media O2, stated that everyone involved in the field is eagerly anticipating the arrival of a revolutionary application that will enable us to reap the benefits of our investments.

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