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

United Kingdom

Analysts and industry leaders warn that the UK is at risk of falling behind in the global competition to implement fast and advanced 5G networks. These networks are crucial for the government's plans to transform Britain into a hub for technological innovation, similar to Silicon Valley.

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Even though the UK was among the pioneers in adopting 5G commercially back in 2019, it is currently lagging due to inadequate funding from mobile service providers and the government's prohibition on using equipment from Huawei, the Chinese company specializing in telecommunications technology.

In May, Ofcom, the governing body for telecommunications, stated that 82 per cent of locations where individuals reside and work in the UK had access to 5G mobile service from at least one operator. However, this percentage drops significantly to 22 per cent when considering areas covered by all network providers.

According to a recent report from OpenSignal, a research firm, the UK ranks 39th out of 56 advanced and developing markets when it comes to the availability of 5G networks. The report measures the percentage of time that mobile phone users in the UK are connected to dedicated 5G networks instead of other wireless technologies, and the current rate is only 10.1%.

A report published in February by Ookla, a company that evaluates mobile networks, revealed that the United Kingdom's 5G download speed positioned the nation 21st out of 25 advanced markets. Surprisingly, the UK's speed was even slower than that of France, Germany, and the Netherlands. This outcome is quite unexpected considering that the UK boasts the highest sales of 5G-capable smartphones in Europe.

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Paolo Pescatore, an analyst at PP Foresight, a research company, expressed that the full potential of genuine 5G technology has yet to be achieved. Pescatore highlighted the excessive excitement surrounding 5G, with telecommunications companies pouring billions of dollars into its development and implementation. However, he believes that the United Kingdom, once considered a frontrunner in 5G advancement, has regrettably fallen behind in this race.

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Andrea Dona, the chief network officer of Vodafone UK, expressed that although we were quick to embrace 5G in the beginning, we are now losing ground. Dona emphasized that Britain has not fully understood the significance of this advancement, despite past errors in the sluggish implementation of previous wireless technologies.

The prolonged advancement of 5G networks in the United Kingdom persists, despite demonstrable economic advantages and the government's aim to establish swift mobile networks.

According to a telecoms consultancy called Assembly Research, the UK economy has the potential to gain a whopping £173bn in the next ten years from 5G advancements. These improvements would come in the form of increased productivity, as well as the development of technologies like connected cities and autonomous vehicles.

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The advent of 5G can empower the mechanisms within autonomous vehicles to receive data and, for instance, guarantee that they react swiftly to unforeseen movements made by pedestrians.

The implementation of 5G technology can also contribute to the improved management of energy resources and the promotion of sustainability within urban areas.

Last year, the authorities announced that they had successfully achieved their objective of providing a fundamental 5G signal using specifically designed towers and radio frequency, while still depending on 4G networks for the majority of the population in the UK. Additionally, government officials have established a goal of ensuring that all densely populated regions have access to 5G networks by 2030.

In his Autumn Statement, Chancellor Jeremy Hunt emphasized the significance of 5G while also underlining his commitment to fostering economic growth through innovation.

"I aspire to amalgamate our expertise in technology and scientific innovations with our robust financial services, with an aim to transform Britain into the future global hub of technological advancements," he expressed.

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However, according to Sylwia Kechiche, an analyst at Ookla, the 5G network in the UK falls under the lower performance bracket. This presents a potential threat of the UK lagging behind, resulting in a decline in economic growth at a sluggish pace.

Top-level officials in the mobile industry emphasize that the slowness in implementing 5G networks can be attributed to the UK government, led by Boris Johnson, taking the significant step of removing Huawei from the country's burgeoning 5G infrastructure due to anxieties regarding national security.

"That completely halted the deployment for the operators," Matthew Howett, CEO of Assembly Research, stated.

Additionally, there seems to be minimal indication of a widespread demand for 5G amongst the general population. A survey conducted by Uswitch, a price comparison service, in October of last year revealed that 1 out of every 6 mobile users believed that the hype surrounding 5G had been exaggerated. Furthermore, less than half of the participants reported experiencing significant enhancements in speed or reliability after upgrading their devices.

The advantages of 5G differ across different parts of the UK. In a study conducted by OpenSignal in March, it was found that the increase in download speed when transitioning from 4G to 5G was minimal in London compared to other urban areas.

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Uswitch stated that the main worry among consumers regarding overhyped technology is the discrepancy between the promised extraordinary experiences and the actual capabilities of our devices.

Mobile service providers have expressed skepticism regarding the investment figures for 5G. They anticipate investing approximately £9 billion in the deployment of 5G by 2030, which falls significantly short of the estimated £34 billion required to provide services that depend on this technology, like autonomous vehicles. This information was disclosed in a report by the Digital Connectivity Forum, an advisory group within the industry, in September of the previous year.

Vodafone and Three, who desire to combine their mobile operations in the UK, have cautioned that if regulatory bodies obstruct their suggested agreement, the progress of 5G implementation will be further delayed.

The consolidation would diminish the count of UK network providers from four to three: the merged organization, in addition to EE and O2. Consumer association Which has conveyed apprehension regarding the potential decline in options for customers and potential rise in prices.

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Vodafone and Three have made a commitment to inject a whopping £11bn into the United Kingdom over the course of a decade, in order to establish an exceptionally sophisticated 5G network, ranking among the most innovative in Europe.

"This consolidation primarily revolves around the excellence of the UK's infrastructure," expressed Robert Finnegan, the CEO of Three UK.

Nevertheless, Pescatore disputed the notion that the success of the United Kingdom's 5G deployment relied solely on the merger. He argued that mobile operators were already significantly behind schedule in demonstrating the benefits of high-speed networks.

Numerous experts from the field expressed that the development of 5G had been focused on anticipating future applications in the business sector.

"We are all eager for the ideal breakthrough application that will yield profitable results in our industry," commented Jeanie York, the Chief Technology Officer at Virgin Media O2.

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