The UK Telecommunications Sector 2024. Sectoral systems of innovation and the UK’s competitiveness
Author(s)
Type
Report
Abstract
Executive Summary
We have explored the impacts and outlooks
of key transformational drivers across the
telecommunications sector in the UK: (1) the
impact of 5G and 6G at both the business model
and technology level; (2) the convergence in
technology, data and platforms beyond the
vertical telecoms sector; and (3) the regulatory
context that enables new entrants and industry
dynamics to evolve.
We analyse 5G’s growth potential and identify the most
promising areas and disruptive implications of 5G while
acknowledging other communications technologies.
The economic impact of the telecoms sector in the
UK is more significant than that of other Organisation
for Economic Co-operation and Development
(OECD) countries, with a strong positive relationship
between broadband investments, speed, and
economic growth. Consequently, due to its profound
impact on the performance of other sectors, such as
healthcare, manufacturing and entertainment, the
telecommunications sector needs to be viewed holistically
as part of the digital sector at large. One of the major novel
sources of growth identified is the emergence of new
location-specific operator concepts that require and rely
on entirely different economic logic and business models
than traditional public nationwide telecommunications
networks. It is also important to acknowledge that despite
its focal impact on national economic performance,
the sector is also a dynamic, global industry.
We identify three key principles that should be relied
upon when thinking about the further development of the
telecoms sector:
• Focus on the development of new telecommunications
innovation ecosystems
• Embrace convergence of the digital domain
• Imagine the role of data, platforms, and analytics
beyond the vertical telecoms sector
Introduction
This sectoral innovation study on telecoms focuses
on identifying the critical elements with the most
significant potential that can improve the productivity and
competitiveness of the UK economy. Essentially, these
elements concern the understanding of (1) the implications
of 5G and 6G at both the business and technological levels,
(2) the role of data, platforms, and analytics, and (3) the
importance of the regulatory context.
We identify recommendations for policymakers and industry
representatives based on our analysis of the UK telecoms
sector. These recommendations address, for instance, the
UK's role in developing future 6G networks, how regulations
should respond to the sector's changing needs, and the
convergence of telecommunications technologies with
other technologies, such as artificial intelligence (AI).
We call for support for the development of an agile and
open environment through new forms of public-private
collaboration in 5G deployment, as well as research and
development (R&D) and industry-academia collaboration.
We emphasise the need for the UK’s telecoms sector to
invest in capabilities to offer and operate communications
networks in different sectors central to economic growth.
We also identify the most promising areas and disruptive
implications of 5G and, eventually, 6G. One of the expected
sources of growth and competitiveness is the emergence
of new location-specific operator concepts at the service
level and private mobile communications networks at the
infrastructure level.
There is an ongoing convergence of mobile communication
networks with digital platforms, such as cloud service
providers and satellite communications. This has triggered
the need to consider the sector's transformation from
vertical and hierarchical structures to horizontal platforms.
Further sources of competitiveness and growth can be
identified from the 'convergence' of telecoms with other
sectors. Within the next ten years, the adoption of 5G
technology will accelerate, creating opportunities to boost
local businesses and ecosystems to new growth areas
in the UK, along with investments in 6G research and
standardisation. AI, cybersecurity, and low-orbit satellite
communications have been discussed on the technology
front, but sustainability and green telecommunications
have also garnered attention during 2023-2024. Regulatory
and policy bodies need to consider how to support
start-ups stemming from these technology domains
to foster competitive national innovation policies and
new market developments nationally and support their
internationalisation aspirations.
We have explored the impacts and outlooks
of key transformational drivers across the
telecommunications sector in the UK: (1) the
impact of 5G and 6G at both the business model
and technology level; (2) the convergence in
technology, data and platforms beyond the
vertical telecoms sector; and (3) the regulatory
context that enables new entrants and industry
dynamics to evolve.
We analyse 5G’s growth potential and identify the most
promising areas and disruptive implications of 5G while
acknowledging other communications technologies.
The economic impact of the telecoms sector in the
UK is more significant than that of other Organisation
for Economic Co-operation and Development
(OECD) countries, with a strong positive relationship
between broadband investments, speed, and
economic growth. Consequently, due to its profound
impact on the performance of other sectors, such as
healthcare, manufacturing and entertainment, the
telecommunications sector needs to be viewed holistically
as part of the digital sector at large. One of the major novel
sources of growth identified is the emergence of new
location-specific operator concepts that require and rely
on entirely different economic logic and business models
than traditional public nationwide telecommunications
networks. It is also important to acknowledge that despite
its focal impact on national economic performance,
the sector is also a dynamic, global industry.
We identify three key principles that should be relied
upon when thinking about the further development of the
telecoms sector:
• Focus on the development of new telecommunications
innovation ecosystems
• Embrace convergence of the digital domain
• Imagine the role of data, platforms, and analytics
beyond the vertical telecoms sector
Introduction
This sectoral innovation study on telecoms focuses
on identifying the critical elements with the most
significant potential that can improve the productivity and
competitiveness of the UK economy. Essentially, these
elements concern the understanding of (1) the implications
of 5G and 6G at both the business and technological levels,
(2) the role of data, platforms, and analytics, and (3) the
importance of the regulatory context.
We identify recommendations for policymakers and industry
representatives based on our analysis of the UK telecoms
sector. These recommendations address, for instance, the
UK's role in developing future 6G networks, how regulations
should respond to the sector's changing needs, and the
convergence of telecommunications technologies with
other technologies, such as artificial intelligence (AI).
We call for support for the development of an agile and
open environment through new forms of public-private
collaboration in 5G deployment, as well as research and
development (R&D) and industry-academia collaboration.
We emphasise the need for the UK’s telecoms sector to
invest in capabilities to offer and operate communications
networks in different sectors central to economic growth.
We also identify the most promising areas and disruptive
implications of 5G and, eventually, 6G. One of the expected
sources of growth and competitiveness is the emergence
of new location-specific operator concepts at the service
level and private mobile communications networks at the
infrastructure level.
There is an ongoing convergence of mobile communication
networks with digital platforms, such as cloud service
providers and satellite communications. This has triggered
the need to consider the sector's transformation from
vertical and hierarchical structures to horizontal platforms.
Further sources of competitiveness and growth can be
identified from the 'convergence' of telecoms with other
sectors. Within the next ten years, the adoption of 5G
technology will accelerate, creating opportunities to boost
local businesses and ecosystems to new growth areas
in the UK, along with investments in 6G research and
standardisation. AI, cybersecurity, and low-orbit satellite
communications have been discussed on the technology
front, but sustainability and green telecommunications
have also garnered attention during 2023-2024. Regulatory
and policy bodies need to consider how to support
start-ups stemming from these technology domains
to foster competitive national innovation policies and
new market developments nationally and support their
internationalisation aspirations.
Date Issued
2024-10-16
Citation
2024, pp.1-33
Publisher
Imperial College London
Start Page
1
End Page
33
Copyright Statement
© 2024 The Author(s).
Subjects
centre for sectoral economic performance
innovation
sector
system
telecommunications
Publication Status
Published