Unlocking £3 Billion for the UK Economy: The Impact of Standalone 5G

New research commissioned by Vodafone has unveiled that implementing standalone 5G connectivity for road and rail travel in the UK could inject an impressive £3 billion ($3.9 billion) into the economy.

Economic Benefits of Standalone 5G

According to modelling conducted by WPI Strategy, the anticipated financial benefits can be attributed to:

• Increased Productivity: £1 billion ($1.3 billion) is expected to stem from enhanced productivity levels due to remote train operations.
• Fuel Savings: Road users could save up to £2 billion ($2.6 billion) through more efficient journeys.

Andrea Donà, Chief Network Officer at Vodafone UK, stated, "The national rollout of a 5G Standalone network has the potential to transform connectivity on the UK’s roads and railways. It could unlock £3 billion a year for the UK through boosted productivity and reduced fuel costs from smoother journeys."

Merger with Three UK and Future Investments

This announcement comes as Vodafone seeks to bolster support for its proposed merger with Three UK. Should this merger proceed, Vodafone anticipates an investment of £11 billion ($14.4 billion) to extend standalone 5G connectivity to 95% of the population by 2030, ultimately reaching 99% coverage by 2034.

Potential Savings from Improved Connectivity

The implementation of standalone 5G is projected to lead to:

• Reduction in Train Delays: Operators could save £10 million ($13.1 million) in delay repayments due to fewer train delays.
• Productivity Gains on Roads: An estimated productivity saving of £140 million ($18.6 million) through enhanced road connectivity.
• Time Savings for Commuters: A forecasted reduction of 26 million hours in delays for train users if the merger facilitates improved connectivity.

The Need for Better Mobile Connectivity

A significant portion of the population recognizes the importance of mobile connectivity during travel, with nearly two-thirds (60%) of UK adults reporting that poor mobile internet on trains hinders their productivity.

Current State of 5G in the UK

Currently, most 5G networks operate on existing 4G infrastructure. Transitioning to standalone 5G will enable:

• Faster mobile upload speeds
• Lower latency
• Enhanced security features

While limited areas in some UK cities already have access to standalone 5G technology, the merger between Vodafone and Three UK aims to expand this access nationwide.

Public Perception of 5G Technology

In a June 2023 survey, more than half of UK adults expressed that they believe 5G has greater potential to enhance their daily lives compared to artificial intelligence (AI).