- UK has the lowest download speed of a G7 country
The hugely damaging impact on the economy of poor connectivity has been laid bare by research showing Britain ranks 22 out of 25 European countries for 5G, the most up-to-date technology offering higher mobile and download speeds.
The US and China are racing ahead while the UK has the lowest download speed of a G7 country.
The study from independent analytics group Opensignal could turn the slow roll-out of 5G into a General Election issue since all parties are sure to pledge to reverse the UK’s flagging productivity.
Damaging: The hugely damaging impact on the economy of poor connectivity has been laid bare
Upgrading all types of infrastructure, including mobile networks, would be crucial to such promises.
Both the Conservatives and Labour are likely to be eager to assure the nation that the decline can begin to be reversed: Britain was once the global leader in mobile innovation.
An industry insider said this weekend: ‘Network investment is a multi-year programme, it’s not a quick fix. If things don’t change soon, the UK is in danger of slipping further behind.’
Businesses, hospitals and social care would be key beneficiaries of much greater availability of 5G.
Vodafone UK calculates small and medium businesses could deliver £8.6 billion in annual productivity savings if the provision of 5G could be improved.
For example, 5G’s superior connectivity could enable a factory with robots to be reconfigured for greater effectiveness without costly and disruptive rewiring.
Tech advances: The US and China are racing ahead while the UK has the lowest download speed of a G7 country
Vodafone adds that introducing more 5G into hospitals would bring efficiencies equivalent to the salaries of 15,400 nurses.
The alarming data on 5G will turn attention to the Government investigation into the contentious merger of the UK businesses of Vodafone and Three, a division of the Chinese CK Hutchinson conglomerate.
It is claimed the get-together could provide funds of £11billion to help finance the estimated £25billion bill for a more rapid roll-out across the UK.
The cost of this capital-intensive endeavour is far greater than that of the 4G roll-out, presenting a challenge that has stood in the way of progress to date.
Margherita Della Valle, chief executive of Vodafone, has described the deal as a ‘multi-trillion opportunity’ that would help innovation and public services.
The merger – which would create the UK’s largest mobile operator – is being examined by the Competitions and Market Authority (CMA) in one of its in-depth ‘phase 2’ investigations.
The stance of Labour on the investigation is not known, but this may be because the party is reluctant to be seen to interfere with the CMA, an independent body.
Behind the investigation lie concerns that the combined group’s 27 million customers would face steep price rises – and also a drop in quality – as competition in the sector lessened.
The merger would create a business larger than EE, owned by BT, and Virgin Media O2 which is a division of Telefonica of Spain and the US corporation Liberty Global. There are also security concerns surrounding the influence of the Chinese state.
CK Hutchinson, which also owns the Superdrug chain and Northumbrian Water, was founded by 95-year-old Hong Kong billionaire Li Ka-Shing.
If the deal were approved, Vodafone would control 51 per cent of the enlarged group, appoint the chief executive and aim to dilute the Chinese minority interest over a three-year period.
The CMA is set to report in September, although the body can extend the process.
But the Election will heighten the focus on Vodafone’s argument that only the capacity and financial clout of the combined group can deliver the 5G upgrade.
The company also contends that ‘a combined, stronger network would significantly boost competition in the wholesale market’.
It says the 150-plus MVNOs (mobile virtual network operators) who include Sky and Tesco would be given more choice. The MVNO sector is the fastest-growing segment of the mobile industry.
Currently 90 per cent of MVNOs do not opt for the networks of either Vodafone or Three as their wholesale provider: they must partner with either of the two main players EE or Virgin Media 02.
