Ofcom Preps Strategic Review of UK 4G and 5G Mobile Networks

Ofcom has today set out the terms of reference for their future UK mobile strategy review, which will examine how the regulator can adjust their approach in order to improve 4G and 5G based mobile (mobile broadband) network connectivity for consumers and businesses over the next 5 to 10 years.

At present 82% of the adult population has a smartphone and average mobile data use grew by 146% between 2016 and 2019, while prices fell by almost 20%. Outdoor 4G data (mobile broadband) services from all MNOs are now available to 97.5% of UK premises and almost all UK premises have coverage from at least one operator. Overall, nine in ten (90%) mobile customers are said to be satisfied with their mobile provider.

Ofcom’s work in this area tends to focus on boosting network coverage, encouraging investment and ensuring the fair treatment of consumers by operators. Some examples of this come via the recent 5G spectrum auction (here), which also had a role to play in development of the new £1bn Shared Rural Network project that aims to push geographic 4G coverage to 95% by the end of 2025 (here, here and here).

The regulator has also aided consumers by banning locked mobile phones (here) and fostering the new “Text-to-Switch” (Auto-Switching) system for UK mobile operators (here), which makes it much easier to change operator. But they’re now planning to take a much longer view of the market, which may also need to consider how existing services (e.g. 2G and 3G) can be safely retired and the impact of a rise in smaller local networks.

Much like the regulator’s recent Wholesale Fixed Telecoms Market Review 2021-26 (FTMR) for fixed broadband and business connections, the new mobile sector review will attempt to build a more holistic view of how the mobile market operates and how Ofcom can best contribute to the delivery of good outcomes for both people and businesses.

The new Terms of Reference are thus intended to provide an early starting point for that discussion, which is all about gathering evidence. Ofcom will then aim to publish a discussion paper on the review by the end of 2021. After that their intention is to proceed to Phase 2, which will see them set out their initial conclusions and any next steps in Q1 2022/23.