4G set to boost economy and UK investments
THE ROLLOUT of superfast mobile broadband will boost the UK’s economy and stimulate a chain of investment, according to Capital Economics.
Research commissioned by telecoms giant Everything Everywhere, the UK hybrid of Orange and T-Mobile, suggests that the latest generation of mobile network – called 4G – will necessitate a £5.5bn direct private sector investment in the UK over the next few years.
This compares with the £7.2bn total budget of the Olympic Delivery Agency, responsible for building venues for the Games, as a sizeable private investment in UK infrastructure.
“Given the recent slump which has seen investment by the private sector drop quite dramatically, this is quite a significant amount of capital expenditure” report author Mark Pragnell told City A.M.
The UK rollout of 4G is also expected to save UK workers 37m hours a year as a result of increased download speeds and a greater penetration of mobile devices.
The time cutbacks are estimated to amount to a saving of £75bn over the next decade.
Capital Economics also claims the superfast mobile network will create or safeguard 125,000 jobs in the UK.
Pragnell said: “The introduction of 4G mobile broadband will create substantial long-term benefits for the economy and consumers. It will kick start a new cycle of investment and innovation.”
4G is the next generation of mobile connection. It will deliver significantly faster download speeds, enhancing mobile internet use including email services, high definition video streaming and online gaming.
Ofcom will be auctioning 4G-ready spectrum later in the year, but Everything Everywhere could roll out the superfast network before then if the communications watchdog approves the use of the telco’s current 1800MHz spectrum for 4G.
Everything Everywhere is pushing for an imminent rollout of 4G to bring the UK up to speed with the US and several European countries.