UK ranks last in major economy 5G connectivity league

Almost ubiquitous high-speed mobile connectivity has long been considered a bedrock requirement of future digital economies, but the UK is falling well behind other major economies in the provision of 5G mobile access, with research commissioned by the Social Market Foundation (SMF) finding that UK users are receiving 5G coverage just 10% of the time.

Moreover, in what effectively represents a damning indictment of the UK’s 5G industry, the Growing connections briefing paper from the cross-party think tank – sponsored by telecoms and global infrastructure investment company APWireless – ranked the UK as bottom of 15 developing and advanced international markets both on 5G availability and download speeds.

The study was published just as the UK minister for data protection and telecoms, Chris Bryant, committed to improving the UK’s digital infrastructure as a key enabler for economic growth. The SMF noted that this is not the first time that the UK government has set out to improve 5G connectivity. In 2023, the previous government put together a Wireless Infrastructure Strategy, which set out the aim for the UK to have nationwide standalone 5G coverage in all populated areas by 2030. The SMF concluded bluntly that reality is not matching political ambition.

The stakes for 5G access are high. According to the SMF, studies suggest that, by 2035, widespread availability and use of 5G could add £159bn in economic benefit through supporting operational efficiencies and the diffusion of innovations across industries. Healthcare, consumer, media and utilities are predicted to see the highest gains. In addition, the SMF said that if 5G becomes ubiquitous, it is also expected to drive gains in the efficacy of the delivery of public services and help deliver a plethora of environmental benefits.

It is concerning that the UK is at rock bottom among several emerging and developed economies on 5G connectivity. Until it changes, this will continue to be a significant hindrance to the government’s growth agenda by denying us major productivity increases, which widespread 5G can help deliver

Yet the SMF study found that the UK trails a number of advanced and developing markets in terms of 5G availability, measured by the proportion of time users have an active 5G connection. Not only is the UK behind European peers such as France (20.6%) and Italy (17.9%), but it is also lagging behind India (43%) and South Korea (38%). While UK users only have access to 5G around 10% of the time, those in India have access over 40% of the time.

The SMF’s analysis of international 5G download speeds suggests the UK is among the slowest. It showed that while average 5G download speeds in South Korea are just under 437Mbps, in the UK they are 118Mbps.

SMF suggested a lack of investment in next-generation technologies and telecommunications infrastructure was at the core of the UK’s poor mobile connectivity. The study attempted to make the case that barriers to investment include complex planning laws that slow and even prevent the delivery of masts, uncertainty over consumer demand and the structure of the telecommunications market.

At present, leading suppliers Three UK and Vodafone are locked in legal limbo following concerns about a lack of competitiveness in their potential merger, a move that the two parties assure will lead to performance improvements in the UK’s 5G sector. In addition, the SMF believes political reforms have unintentionally hindered investment, including the approach to spectrum and infrastructure cost-cutting measures. These, it said, have led to unprecedented levels of litigation, hampering roll-out and the supply of land as landowners are discouraged from leasing land to mobile networks.

The SMF observed that the UK’s approach towards spectrum is seen by many as hindering the expansion and modernisation of wireless infrastructure. In the report, it was specifically criticised for the combined costs created by the initial auctioning and subsequent charges for using spectrum. The auctioning of 4G spectrum cost £2.3bn in 2013, while the 5G spectrum auction process resulted in mobile network operators (MNOs) paying around £1.3bn for shares of it. Between 2022 and 2030, it is estimated that spectrum fees will cost the four main MNOs around £3bn.

“It is concerning that the UK is at rock bottom among several emerging and developed economies on 5G connectivity. Until it changes, this will continue to be a significant hindrance to the government’s growth agenda by denying us major productivity increases, which widespread 5G can help deliver,” said SMF senior researcher Richard Hyde.

“It is reassuring that the government has recognised the importance of infrastructure to growth, but there are a range of obstacles that will need to be addressed to ensure 5G mobile can play its role in contributing to growth. While this paper has set out the poor state of affairs, we will be providing a comprehensive set of solutions in a forthcoming report towards the end of the year.”