Smarter, faster, stronger: Why the UK needs to grow coverage to win the 5G race

Consumer behaviour: a golden opportunity for operators

Even the pandemic didn’t dampen any demand for mobile data consumption. In fact, it had the opposite effect: more connectivity was consumed across mobile and Wi-Fi together. This is very much the new normal. We all take connectivity so much more seriously, and have realised how important it is, be it for schooling, work or leisure. What we used to consider a bit of a luxury has now become a necessity.

Network data shows a marked increase in overall internet traffic – between 20 and 100 percent - over pre-lockdown levels. Somewhat unsurprisingly, healthcare, telemedicine, online gaming, shopping, and work accounted for most of the rise in traffic and time spent online, however Ericsson’s most recent ConsumerLab research shows that UK consumers need more to help them on their 5G journey. Operators must do more to convince users to switch, and there are rewards if they succeed. In the UK, Net Promoter Score, a measure of brand loyalty for service providers, was 24 among those using 5G, compared to just 1 among those using 4G. That translates into increased Average Revenue Per User. UK consumers put high value on 5G plans bundled with digital services and are willing to pay a further 7 percent more over and above the 10 percent premium they are willing to pay for 5G connectivity.

Government support is critical

While it is down to the operators to highlight the benefits of 5G through deploying coverage and demonstrating use cases, it is down to government to smooth the way for operators to do so. UK operators have long complained about the difficulty they have in working with local authorities. Three UK recently revealed that 50 percent of planning applications are turned down across the country, and near enough 100 percent are rejected in London alone.

The UK is unfortunately one of the slowest countries for granting planning consent. Revisions to the Electronic Communications Code in 2017 failed to go far enough, and while the recent launch of a consultation on changes to permitted development rights for communications infrastructure are welcome, they are more about really addressing the lack of wider area coverage than urban capacity. There is a sense of urgency required for the UK to take full advantage of 5G, especially now the recent spectrum auction has cleared the path for operators to press ahead.

But Government support and funding is one thing that potentially has the biggest impact on the UK’s future in the global 5G leadership race. Changes to planning laws and things like 5G Testbeds and Trials, the Shared Rural Network and gigagbit connectivity targets are all very positive, but the schemes need to be executed speedily to ensure the UK can take full advantage of 5G.

Right here, right now

We must be cautious in the UK of becoming distracted at the most critical moment. The telecoms industry remains dazed by diversification and the future of open networking specifications, despite Radio representing a small part of overall telecoms infrastructure investment. There is a real risk such short term distractions could see the UK repeat errors made with slow roll-out of 4G and allow the US and China to establish a similar lead as they did with the global app economy. With the country’s long term economic competitiveness at stake, more complexity in the telecoms market could see the UK’s bid for global 5G leadership suffer from paralysis by analysis.

Such short-termism feels like a distraction the UK can ill afford. We must keep the focus resolutely targeted towards unlocking the immediate advantages of 5G and helping operators to speed up roll-out. More uncertainty and mandated technology are the last things the UK needs right now. The focus should be on giving operators every chance of success in immediate 5G deployments. That means regulation being technology neutral and allowing market forces and demand to flourish freely. We need to give UK operators the choice to make their own network architecture decisions and avoid political distraction.

We must stay focused on the UK’s 5G roll-out journey right here, right now.

The full version of this article first appeared in UK5G’s Innovation Briefing Issue 6.