Government Unveil UK Digital Strategy – Talks 99% Gigabit Coverage

The UK Government has published their ‘Digital Strategy’, which reflects a “new plan” to grow the “digital economy” (i.e. addressing tech sector skills, investment and infrastructure). But in terms of mobile and broadband infrastructure, it’s largely another re-announcement of existing schemes (not unlike the ‘Levelling Up‘ plan).

As usual, there are the usual sound bites, such as around the desire to “[cement] the UK as a global tech superpower, building on our position as Europe’s leading destination for starting and growing digital businesses“. Related figures, says the plan, show more than £12bn in venture capital funding has been secured by UK tech startups and scale-ups so far this year, which is more than the whole of 2020 and “puts the UK just behind the US and ahead of China“.

The Government then estimates that its approach to supporting and strengthening the digital economy could grow the UK tech sector’s annual Gross Value Added (GVA) by an additional £41.5 billion by 2025, and create a further 678,000 jobs. But naturally, our interest is purely focused on the digital infrastructure side of things, and on that front, there isn’t much new to report.

Digital Minister, Chris Philp, said:

“Developed economies face long-term challenges around growth, productivity and real wages. Just as Thatcher unleashed the power of the market to transform our economy in the 1980s, unleashing the power of the tech sector will transform our economy today.

In the last five years the UK has raced ahead of Europe to become a global tech leader and now we’re setting the course for the future. The Digital Strategy is the roadmap we will follow to strengthen our global position as a science and technology superpower. Our future prosperity and place in the world depends on it.”

The only interesting aside that we did spot was with respect to the Government’s target for “gigabit-capable” broadband coverage under the £5bn Project Gigabit programme. The Levelling Up plan aimed to ensure that a minimum of 85%+ of UK premises could access a gigabit-capable broadband ISP connection by the end of 2025 (this looks viable), before possibly reaching “nationwide” coverage by the end of 2030 (here and here).

However, we’ve previously noted that even DCMS felt as if it would not be viable to reach those in the final 0.3% (c.100,000) of very remote rural premises (a new plan is being created to help these areas), which is why we’ve since been expressing “nationwide” ourselves as a 99%+ target. The new Digital Strategy also appears to have adopted the same dose of realism, but no doubt some politicians may characterise this as another watering down.

1.1 World-class and secure digital infrastructure

Digital infrastructure plays a vital role in our daily lives and is the foundation of a thriving digital economy. Every part of the UK needs world-class, secure digital infrastructure that enables people to access the connectivity and services they need – where they live, work or travel. That is why enhancing digital connectivity is Mission Four of the Government’s Levelling Up White Paper. Our goal is to ensure that everyone, wherever they live or work in the UK, can access the connectivity and services they need for the ever-digitising world.

The Department for Digital, Culture, Media and Sport (DCMS) is leading an ambitious programme of work to both accelerate the commercial delivery of nationwide gigabit broadband and ensure rural areas are not left behind. Thanks to our policies to encourage competition and investment, and remove barriers to deployment, industry is investing over £30 billion in one of the fastest broadband rollouts in Europe. Our aim is to achieve at least 85% gigabit coverage by 2025 and at least 99% gigabit coverage by 2030.

The UK is also making significant progress in rolling out wireless connectivity, with 92% of the UK landmass currently covered by a good 4G signal from at least one operator. The Shared Rural Network will further improve coverage for 280,000 premises and 16,000km of roads, with the biggest anticipated coverage improvements in rural Scotland, Northern Ireland and Wales.

Beyond 4G, our ambition is that the majority of the population will have access to a 5G signal by 2027. DCMS has invested almost £200 million in UK telecoms innovation through the 5G Testbeds and Trials programme (5GTT), helping to establish our global leadership in this area, and supporting industry, academic institutions, and local authorities to realise the benefits of 5G. We are also investing £250 million in R&D to deliver a diverse 5G supply chain, to ensure the security and resilience of our networks and deliver the Government’s 5G Diversification Strategy.

We know that wireless networks will evolve significantly over the next decade. DCMS’s upcoming Wireless Infrastructure Strategy will set out a strategic framework for the development, deployment and adoption of wireless networks in the UK.

Sadly, the Government also missed yet another a golden opportunity to set a more ambitious target for 5G coverage than the ridiculously low bar that exists today – (i.e. “the majority of the population will have access to a 5G signal by 2027“). As we’ve said before, EE and Three UK have effectively already achieved this, and all operators will be building much further than that commercially.

The UK Digital Strategy
https://www.gov.uk/government/publications/uks-digital-strategy