Market Update: Comms Business – Improved mobile connectivity could add £6.6 billion to UK economy – Full Analysis

Improved mobile connectivity could add an annual £6.6 billion to the UK economy after 10 years by enabling the creation of tens of thousands of new businesses.

That’s according to new research by consultancy firm WPI Strategy for VodafoneThree.

The latest modelling for VodafoneThree suggests the increase could be achieved through the creation of 49,000 new businesses by 2036.

The findings come as VodafoneThree announces the removal of 16,500 km2 of network not spots – areas that previously had little or no mobile coverage – by deploying multi-operator core network (MOCN) technology on more than 8,000 sites nationwide. The technology means Vodafone and Three customers can connect to the best available coverage, at no extra cost.

This milestone forms part of VodafoneThree’s £11 billion investment programme to build the a nationwide network, reaching 99 per cent 5G Standalone population coverage by 2030, and 99.96 per cent by 2034. The independent survey of 2,000 individuals, including existing and aspiring business owners, found that poor mobile signal is a major obstacle to entrepreneurship throughout the UK. 

Almost two-thirds (62 per cent) of potential founders reported that unreliable connectivity has stopped them from launching a business locally. Furthermore, one third (33 per cent) believe improved signal would make their area more appealing for starting a business and 26 per cent say it would directly increase their willingness to establish a company in their local area.

Vodafone Business, VodafoneThree’s B2B division, has consistently demonstrated its commitment to supporting small and medium-sized enterprises, notably through its business.connected programme. Launched in 2021, the initiative focuses on identifying the challenges faced by small businesses and delivering hands-on, practical solutions to address them. Users also have free access to a range of online courses, bootcamps and workshops. 

“When connectivity improves, entrepreneurship follows,” said Nick Gliddon, business director, VodafoneThree. “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, our business.connected initiative, and similar ones such as the V-Hub service, have 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.”

Telecoms Minister, Liz Lloyd, said, “Access to high quality, reliable mobile connectivity is essential for businesses and driving growth. The investment VodafoneThree has committed as a result of their merger, along with their efforts to remove not spots, will help boost coverage across the UK and support our ambition for all populated areas to have access to higher-quality Standalone 5G by 2030.

“We continue to work closely with all mobile network operators to ensure businesses have the connectivity they need to start, scale and succeed, supporting the ambitions set out in the government’s Entrepreneurship Prospectus, which outlines measures to boost enterprise by improving access to finance, cutting red tape and helping firms grow.”

As VodafoneThree enhances connectivity throughout the regions, 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.

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 10 entrepreneurs saying that they rely on connectivity to run their business. Almost nine in 10 founders have been affected by connectivity problems at some point and many have experienced 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.

Tina McKenzie, policy chair at the Federation of Small Businesses, said, “Mobile connectivity is essential for helping businesses to work efficiently and stay competitive, be it contacting customers, organising stock, or speaking to staff, clients and stakeholders.

“If we want more people to take the leap into starting their own business, they need reliable connectivity to make it possible. Currently, the 5G rollout has been uneven, particularly in rural areas and connectivity no-zones, including city centres. This limits business efficiency and stunts growth opportunities.

“We need the government to work with mobile operators to expand network coverage, making sure 5G is available to businesses across the UK.”