Poor cell phone protection throughout the UK is costing the economic system billions say specialists
Fixing coverage black holes would generate thousands of jobs, create 49,000 businesses and a £6.6bn boost to the economy by 2026.
UK economy is missing out on a massive £6BILLION a year because of poor mobile phone coverage across the country(Image: Getty Images)
Britain’s economy is missing out on a massive £6billion a year because of poor mobile phone coverage across the country, say economic experts. Getting rid of swathes of mobile coverage black holes would generate tens of thousands of jobs and new businesses, according to research by consultants WPI Strategy for VodafoneThree.
Expert economic modelling suggests that getting proper mobile connectivity to those areas that have little or none would create 49,000 businesses and a £6.6bn boost to the economy by 2026. The figure of £6.6bn is the equivalent of paying for an extra 100,000 doctors a year or building around 200 new schools.
The findings come as VodafoneThree announces the removal of 16,500 km 2 of network ‘not spots’ – areas that previously had little or no mobile coverage – by using state- of-the-art technology at more than 8,000 sites nationwide. The technology – part of their £11 billion network investment – means Vodafone and Three customers can connect to the best available coverage, at no extra cost.
The economic modelling is based on a survey of 2,000 people which found that poor mobile signal is a major obstacle to entrepreneurship throughout the UK. Almost two-thirds (62%) of potential founders reported that unreliable connectivity has stopped them from launching a business locally.
And a third (33%) believe improved signal would make their area more appealing for starting a business, and 26% say it would directly increase their willingness to establish a company in their local area. VodafoneThree Business Director Nick Gliddon said: “When connectivity improves, entrepreneurship follows.
“Founders move fast, and the infrastructure around them needs to keep up. Strong and reliable connectivity helps start-ups win customers, build reputation and grow steadily. We’re focused on building the network that UK enterprise can count on.”
“As improved mobile connectivity continues to reshape the business environment, we remain committed to supporting SMEs by investing in digital skills and literacy. To date, initiatives and similar ones such as the V-Hub service has enabled more than 2.8 million SMEs to enhance their digital skills, equipping them with the tools necessary to thrive in an increasingly connected world.”
The North-West of England stands out as one of the biggest winners — with improved coverage expected to support the establishment of approximately 5,974 new businesses, contributing an estimated £807 million to the annual economy in 10 years’ time. Similarly, the South-East could see the emergence of around 5,808 new businesses, resulting in an economic uplift of £784 million.
Places such as Newcastle-under-Lyme, situated in Staffordshire within the West Midlands, stand to gain significantly with the research suggesting that enhanced connectivity could result in a £9 million boost to the local economy. The research also shows that connectivity challenges can be found in bigger cities.
Even in London, would-be entrepreneurs strongly believe poor mobile signal is holding them back. Improved connectivity in the capital could enable the creation of 14,431 new businesses, contributing £1.9bn to the economy, with 22% of prospective founders saying they would start a business if mobile signal was better.
London’s political heartland, Westminster represents the single biggest opportunity, with other boroughs also set to see significant gains, including Camden (£136m), Hackney (£93m), Barnet (£92m), the City of London (£87m) and Islington (£84m). Elsewhere, improved connectivity could unlock 1,008 new firms in Wales, worth £136m to the annual national economy in 10 years, while Scotland could see 2,152 new businesses launched, contributing £291million over the same period.
The research also highlights the impact of poor connectivity on existing businesses. Two in five founders say they had to relocate in order to set up their company, citing a lack of customer base, poor connectivity and access to talent as the main reasons.
Reliable mobile connectivity is now critical to day-to-day business operations with six in ten entrepreneurs saying they rely on connectivity to run their business. Almost nine in ten founders have been affected by connectivity problems at some point, and many experiencing outages that disrupt trading.
For businesses that remain, dependable mobile connectivity has become fundamental to everyday operations. From taking payments on the go and communicating with customers, to managing online marketing, social media and e-commerce, mobile networks underpin how modern businesses function. Entrepreneurs consistently highlight that when connectivity falters, work slows, customers are impacted and revenue is put at risk.
A recent study by the Department of Science, Innovation and Technology (DSIT) found that dependable mobile connectivity in rural regions boosts entrepreneurship and enhances business performance, including improved communication and wider market reach. Similar to VodafoneThree’s findings, these results affirm the crucial role that robust networks play in fostering innovation and economic growth across the country.
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