- The UK has the lowest download speed of any G7 country
The hugely damaging impact on the economy of poor connectivity has been laid bare by research showing Britain is ranked 22nd out of 25 European countries for 5G, the most up-to-date technology offering faster mobile and download speeds.
The United States and China lead the way, while the United Kingdom has the lowest download speed of a G7 country.
The study by independent analysis group Opensignal could turn the slow rollout of 5G into a general election issue, as all parties are sure to commit to reversing the UK’s declining productivity.
Detrimental: The hugely damaging impact on the economy of poor connectivity has been exposed
Upgrading all types of infrastructure, including mobile networks, would be crucial to delivering on those promises.
Both the Conservatives and Labor are likely to be keen to reassure the nation that the decline can begin to be reversed: Britain was once the world leader in mobile innovation.
One industry expert said this weekend: ‘Network investment is a multi-year programme, it is not a quick fix. If things do not change soon, the UK is in danger of falling further behind.
Businesses, hospitals and social care would be the main beneficiaries of much greater availability of 5G.
Vodafone UK estimates that small and medium-sized businesses could generate £8.6 billion in annual productivity savings if 5G provision could be improved.
For example, 5G’s superior connectivity could make it possible to reconfigure a factory with robots for greater efficiency without the need for costly and disruptive rewiring.
Technological advances: US and China lead, while UK has lowest download speed of any G7 country
Vodafone adds that introducing more 5G in hospitals would provide efficiencies equivalent to the salaries of 15,400 nurses.
The alarming data on 5G will focus attention on the Government’s investigation into the controversial merger of the British companies of Vodafone and Three, a division of the Chinese conglomerate CK Hutchinson.
It is claimed that the meeting could provide funding of £11bn to help fund the estimated £25bn bill for faster implementation across the UK.
The cost of this capital-intensive initiative is much higher than that of 4G deployment, presenting a challenge that has hampered progress to date.
Margherita Della Valle, chief executive of Vodafone, has described the deal as a “multi-million dollar opportunity” that would help innovation and public services.
The merger, which would create the UK’s largest mobile operator, is being examined by the Competition and Markets Authority (CMA) in one of its in-depth “phase 2” investigations.
Labour’s position on the investigation is unknown, but this may be because the party is reluctant to be seen interfering with the CMA, an independent body.
Behind the investigation lies concern that the combined group’s 27 million customers would face sharp price increases (and also a drop in quality) as competition in the sector diminishes.
The merger would create a business larger than EE, owned by BT, and Virgin Media O2, which is a division of Spain’s Telefonica and U.S. corporation Liberty Global. There are also security concerns around the influence of the Chinese state.
CK Hutchinson, which also owns the Superdrug chain and Northumbrian Water, was founded by Hong Kong billionaire Li Ka-Shing, 95.
If the deal is approved, Vodafone would control 51 percent of the expanded group, appoint the chief executive and seek to dilute the Chinese minority interest over a three-year period.
The CMA is scheduled to present its report in September, although the body may extend the process.
But the election will increase attention on Vodafone’s argument that only the capacity and financial clout of the combined group can deliver the 5G upgrade.
The company also maintains that “a stronger, combined network would significantly boost competition in the wholesale market.”
It says the more than 150 MVNOs (mobile virtual network operators) including Sky and Tesco would have more options. The MVNO sector is the fastest growing segment of the mobile industry.
Currently, 90 per cent of MVNOs do not opt for Vodafone or Three networks as their wholesale provider: they must partner with either of the two main players, EE or Virgin Media 02.
