That’s according to Mobile UK, the trade association for the UK’s four MNOs, in its new report entitled ‘Rebalancing Act: Unlocking the Potential of the UK’s Mobile Industry’.
The report, prepared by White Hawk Group, found that despite ongoing industry investment in infrastructure at around £2 billion per year, there was a £25 billion investment gap, which is integral to the roll-out of advanced 5G Stand Alone networks.
If this investment gap is not plugged the UK will struggle to reap the benefit of widespread adoption of 5G in generating £159 billion in productivity by 2035, warned Mobile UK.
The body said that findings demonstrated that crucial infrastructure upgrades are too reliant on an under-resourced planning system.
This, alongside a growing social demand on the industry, unfunded by the public purse, to help vulnerable people and provide social tariffs, is creating an imbalance that further impairs the investability of the sector, it added
Hamish MacLeod, CEO of Mobile UK, said, "It’s clear the industry is delivering strong value through the generation of £5 return to the wider economy for every £1 invested by the operators, and so enabling a positive investment environment for the sector must be the clear priority of government.
"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."
The key challenges the report identified were:
• Investment gap: Private capital currently funds the mobile sector almost entirely. However, stagnant revenues, cost pressures, and the need for continuous infrastructure upgrades are hindering investment potential.
• Policy and regulation: Regulatory burdens and economic pressures are impacting mobile network operators (MNO) profitability, further constraining investment.
The report made four recommendations:
• At a minimum, follow through on policies and actions outlined in the Wireless Infrastructure Strategy.
• Explore further policy actions designed to remove barriers to network rollout.
• Implement fiscal measures that will have a direct and immediate impact on improving MNO investment outlook.
• Consider further actions that can be taken to support private capital being deployed in the UK by mobile