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Connectivity in the UK Mobile Market

"How many of us could live our lives without our mobile phone now?" asks Paul Morris, Head of Government Affairs and Sustainable Business, Vodafone, at today's Westminster eForum keynote seminar The future of the mobile market in the UK - consolidation, competition and regulation, 5th July 2018. On the day the panellists provided useful insight into connectivity in the UK mobile market and its importance in the day-to-day life of the consumer. This short blog is a snapshot of the current state of play.

This is how Philip Marnick, Group Director, Spectrum, Ofcom, describes consumer expectations:

"On the road, in a train, when visiting a tourist site, when walking in the hills. Even in the most remote of locations, people expect their mobile to work.”

Philip Marnick, Group Director, Spectrum, Ofcom

He highlighted the fact that modern smart phones need better networks to make them work and deliver.

Currently, the UK are part of a global race towards 5G, part of the digital economy, and one of the success stories for the UK. It is a competitive market, with four mobile network providers; EE, Vodafone, O2, and Three. Inge Hansen, Director, Regulation, Consumer at EE, pointed out that the "competitive market has given consumers access to better choices and improved services".

In 2016, the European Commission blocked the acquisition of O2 by Three, over concerns that it would reduce customer choice and raise prices. This is how the Europe's competition commissioner, Margrethe Vestager, describes the ruling, "We want the mobile telecoms sector to be competitive, so that consumers can enjoy innovative mobile services at fair prices and high network quality." Ofcom were also against the merger of the two services.

Whilst the competitive market serves consumers well, at the same time many rural areas within the UK still have limited or no connectivity. Darren Jones, MP for Bristol North West and member of the Science & Technology Select Committee, noted that connectivity is increasingly, "Crucial to every area of policy", in particular to high demanding areas of the economy, such as health and education.

As the NHS migrates to a nationwide digital ecosystem, the necessity for nationwide connectivity is even more urgent. In education, Charlton Manor primary school, demonstrate how a reliable connectivity can support their collaborative project Childhood Obesity and Dental Decay: A plan for Action.https://bit.ly/2NSltrY For more on Charlton Manor go to www.charltonmanorprimary.co.uk.

Luckily, the school is based in Greenwich, South London, an urban area. But there are schools, colleges, hospitals and GP surgeries in rural areas of the UK without good connectivity. Graham Louth, Partner at Aetha Consulting, suggests that whilst the launch of 5G will facilitate providers to make additional broadband capacity in urban areas, it will not solve the rural coverage problem, and is of serious concern to Ofcom. This is what Philip Marnick recommends, which is well within the economic and technical expertise of the country:

"All people in the UK should benefit from 5G, there should not be a divide between the digital haves and the digital have nots."

Philip Marnick, Group Director, Spectrum, Ofcom

In a competitive market, a lack of investment in rural areas is primarily driven by the fact that they are not profitable. Lawrence Wardle, Director of Regulatory Affairs at Telefonica UK, emphasizes the importance of acknowledging that there is a cost involved in extending coverage, which is a considerable barrier.

Achieving nationwide connectivity is an enormous engineering task that impacts almost everyone in the UK. With some local communities being averse to having a radio tower in their area, and high rents being charged to mobile network providers, there is still much work to be done to resolve the challenges faced.

Melissa Giordano, Deputy Director of Mobile Infrastructure and Spectrum at DCMS, confirmed that the government are starting to connect up Local Authorities who are examples of best practice with one another. She highlights that the human and property rights of land owners need equal consideration with market need. The government want to ensure that the costs associated with the expansion of infrastructure are not a barrier to deployment going forward. It is vital that the infrastructure is sufficient to support future demand. Melissa Giordano goes on to say that the future of IoT needs to work in the interest of citizens.