How UK Broadband Funding aims to Boost National Connectivity

In the wake of the UK government’s Autumn 2024 budget announcement, mobile and telco leaders are examining its pledge to provide more than £500m (US$646.78m) of funding in 2025 to improve reliable fast broadband and mobile coverage across the UK.

The promise includes rural areas, which are in need of great investment in order to better connect people nation-wide. Currently, the country’s telecoms infrastructure is falling behind other major economies across Europe, with around 53% of UK residents experiencing connection issues in 2023. 

Likewise, Ofcom (the Office of Communications) and ONS (the Office of National Statistics) finds that 6% of UK households have no access to the internet, with 4.2 million adults having never used it.

Transforming national mobile coverage 

By prioritising infrastructure improvements, the UK government is aiming to invest long-term in boosting connectivity and reducing digital inequalities - all designed to make an economy that is more resilient. 

One of the initiatives that the government could continue supporting is the Shared Rural Network (SRN) project, which is developed by the UK’s four mobile network operators. In partnership with the government, it is designed to deliver 4G coverage to 95% of the UK by the end of 2025 to better enable rural businesses and communities to thrive.

By upgrading their existing networks and working together on shared infrastructure and new sites, mobile network operators (MNOs) and the government will transform mobile coverage in rural areas. 

Connectivity, particularly for individuals and businesses in rural areas, is essential for driving economic growth. Improved broadband and mobile networks could encourage businesses to operate outside of more urban areas, which could lead to greater support for flexible working models.

Ruth Kennedy, CEO of TalkTalk Business, spoke about how the funding to improve reliable broadband sits at the core of the government’s drive to maximise business productivity.

She says: “ In today’s digital economy, businesses simply cannot reach their full potential without dependable, high-speed broadband – it’s the link that connects workplaces to the wider economic market.

“For many businesses, especially in more rural areas, the struggle with poor quality connectivity leads to wasted time, energy and resources – something that is simply unacceptable in this day and age,” she adds. 

“It’s encouraging to see the government recognising that reliable, fast and secure connectivity across all regions will be vital for driving long-term economic growth and empowering businesses to operate at their maximum capacity.”

Driving future-ready innovation

As reliable internet infrastructure is essential for remote working, the government’s investment is expected to improve digital access and therefore support a more distributed and resilient economy across the UK.

Additionally, the £5 billion (US$6.48bn) Project Gigabit scheme has already brought 1Gbps+ broadband speeds to at least 85% of UK premises. Now, the initiative is targeting nationwide gigabit and 5G availability by 2030, according to the Autumn 2024 Budget document.

Kyle Hill, CTO at ANS, explains: “The UK has long been an innovative country, so it’s fantastic to see the Labour Government’s Budget made strong strides in spotlighting how the UK will drive forward digital advancements.”

However, it will be interesting to see how the original budget for Project Gigabit will be spread out, with £1.5 billion (US$1.94bn) left to be allocated. 

The role of AI

Although AI was not explicitly mentioned during Chancellor of the Exchequer Rachel Reeves MP’s budget speech, there is a wider mission for the government to innovate successfully. 

This includes its wider Modern Industrial Strategy, which is designed to ensure greater development of the country’s digital infrastructure, whilst supporting the growth of key sectors like digital technologies.

AI could remain a critical aspect of this process and drive real benefits for the wider telco sector.

Kyle Hill adds: “With innovative technology now in reach, both public and private sector organisations must immediately create guardrails that will provide the foundation for the success of implementation. This means investing time and resources into their data infrastructure and cyber security and governance measures. 

“Being AI ready will be the key to realising economic growth for the UK.”

Make sure you check out the latest edition of Mobile Magazine and also sign up to our global conference series - Tech & AI LIVE 2024 and Cloud & 5G LIVE 2025

Mobile Magazine is a BizClik brand