UK mobile needs new perspective and dynamic change in policy outlook. Now

At Connected Britain (9-10 September), mobile network strategy and investment were centre stage, with VodafoneThree, Cornerstone, BT Mobile and Ofcom all focusing on the issue. Everyone was constructive, as they are every year, and everyone agreed that connectivity is critical national infrastructure; essential for consumers, economic growth and the UK’s role in the AI ecosystem. So why do UK mobile networks still rank so poorly on connectivity measures compared with European peers?

The core issue is not whether mobile connectivity matters as everyone agrees it does. The harder question is whether the current industry perception and regulatory and pricing models give operators enough incentive to invest at the level the UK now needs.

Putting aside the legacy issues which cannot be recovered such as, too many operators as consolidation only 15months old, infrastructure planning and permitting challenges, artificially elevated spectrum costs and vendor swap-out costs, the question now is who can shape the future. It could be argued that Ofcom holds the key, but doing so may require a change of mindset at the regulator to help improve investment visibility and returns.

Ofcom highlighted the ambition of delivering “good connectivity at least 90% of the time, wherever they are”, alongside the critical requirements of resilience and security. Those aims are important, but they come with cost. At the same time, Ofcom also celebrated that “strong competition has delivered real benefits too, with average prices falling by around a fifth in real terms over the last five years, while average data use has more than doubled.” That combination creates the tension at the heart of the UK mobile market - higher expectations, higher investment requirements and continued pressure on returns.

If the UK wants a fit-for-purpose mobile environment with robust connectivity that supports innovation, technological advancement, a platform for AI, improved services such as healthcare, and the country’s wider competitiveness, then the industry needs more than a regulatory narrative built around price declines. Celebrating falling prices should be a thing of the past because, in absolute terms, UK mobile prices are simply too low. For example, it costs me more to travel from Zone 4 to Zone 1 on the Underground every day for a month than I pay for five mobile service contracts and fibre at home.