Investment In Telecoms Innovation And R And D

11th April 2023

Substantial investments in telecoms and a new Wireless Infrastructure Strategy to put the UK at the forefront of science and technology, harness enterprise and innovation and drive economic growth.

The Prime Minister has set out his 5 priorities for this government - to build a better, more secure, more prosperous future for the UK, including growing the economy, and creating better-paid jobs and opportunity right across the UK. We can only deliver on that priority with world-class digital infrastructure.

Investment package worth almost £150 million unveiled, with up to £100 million to put the UK at the forefront of future research, and £40 million to boost 5G tech take-up

ambition to deliver standalone 5G to all populated areas by 2030 to support the next generation of innovation

additional £8 million to connect remote homes and businesses with a pioneering satellite connectivity programme ensuring no community is left behind

new Wireless Infrastructure Strategy will deliver on the Prime Minister's priority to grow the economy

New plans and investment to boost digital connectivity and put the UK at the forefront of future telecoms technologies have been unveiled by Technology Secretary Michelle Donelan today (Tuesday 11 April) - unlocking growth, innovation and potential across the country.

As part of the new Wireless Infrastructure Strategy, the government has set out its ambitions to blanket the country with the fastest, most reliable wireless coverage available – with an ambition for all populated areas to be covered by ‘standalone' 5G (what some companies call 5G-plus) by 2030. 77% of the population already has access to basic 5G from one provider.

This next iteration of 5G coverage across the country will unlock new technologies that will change our lives and the way businesses operate, at a time when the connectivity we depend on is significantly evolving and is woven further into the lives of us all. From driverless vehicles, robots and drones on the factory floor to making our cities smarter, cleaner, and less congested; innovation is set to be supercharged.

Today’s announcement also commits £8 million to delivering high-speed broadband for up to 35,000 of the UK’s most remote properties. Under the new scheme, homes and businesses in the most remote areas that are unable to be connected to gigabit-capable broadband will be given funding to link them up to satellites orbiting the globe, giving them a broadband connection that will be up to ten times faster than what is currently available to them.

Additionally, a £40 million 5G innovation fund will promote investment and adoption of 5G by businesses and public services, helping them unlock opportunities to use advanced wireless connectivity, generating value, innovation and growth at a local level.

To help the mass adoption of 5G across the country, the strategy sets out a clear pro-investment framework for mobile network operators by driving down deployment costs and improving demand. The government has also reconfirmed that there is no ‘magic number’ of mobile operators, whilst noting all decisions on consolidation are for the Competition and Markets Authority.

The UK is due to hit 75% gigabit broadband coverage this month, up from just 6% in 2019, and is on track to deliver 99% by 2030.

Technology Secretary Michelle Donelan said:

Our Wireless Infrastructure Strategy sets out our plan to ensure everyone, no matter where they live, can reap the benefits of improved connectivity. We are doing this by ensuring all populated areas in the UK will be served by what I call ‘5G-plus’ technology by 2030. We are also committing £8 million to provide satellite connectivity for our most remote communities so that no one is left behind.

We are also supporting long term economic growth in the UK with a £40 million fund to encourage innovative 5G investment across the private and public sector. This will help industries transform at a time when the ways we communicate, work and do business are on the precipice of significant evolution.

This package of measures turbocharges our progress towards becoming a science and tech superpower with a substantial initial investment in the future of telecoms. We want to ensure that 6G is developed to meet the needs of people and businesses right across the UK and bolster our international competitiveness throughout the economy.

Future telecoms mission
The government has also announced a new long-term national mission to ensure that the UK is at the forefront of both adopting and developing 6G, the future of digital connectivity. As part of a fully-fledged 6G strategy, the government will ensure that the next generation of mobile connectivity meets the needs of people and businesses across the UK.

The government has committed up to £100 million of funding initially to shape and drive early-stage research into 6G and influence global standards-setting. The UK will work closely with allies to deliver this mission - ensuring we are influential in shaping the global landscape, embedding our values into future telecoms technology, and protecting our security interests. This will support the UK’s drive to become a science superpower, as set out in the Science and Technology framework.

Accelerating broadband rollout
We are putting in place new plans to speed up the deployment of faster internet connectivity through work with the local authorities and the telecoms industry to further trial the use of flexible permits for roadworks to install fibre in a number of areas.

Spectrum Statement
Spectrum is the invisible electromagnetic waves that enables all wireless technology, from our mobile phones, Wi-Fi and Bluetooth devices to aircraft navigation and satellite applications, amongst many other uses. The devices and services that depend on spectrum now underpin almost every aspect of our economic and social lives.

As spectrum becomes more critical to UK strategic priorities - from communications and broadcasting to space and defence - we have also set out the government’s priorities in a new Spectrum Statement.

This will mean better connectivity for people across the UK and better access to spectrum to support new enterprise applications that will drive the economic growth, productivity and improved public services of tomorrow.

Digital infrastructure is crucial to unlocking opportunities for growth and prosperity and delivering my department's mission to put the UK at the forefront of global scientific and technological advancement. Future telecoms is 1 of the 5 critical technologies identified in our recently published Science and Technology Framework.

That is why the government has announced a package of measures to drive the deployment and adoption of fixed and wireless networks and to invest in the next generation of connectivity.

A new Wireless Infrastructure Strategy
The Wireless Infrastructure Strategy sets out a policy framework to affirm our unwavering commitment to extending 4G coverage to 95% of the population, deliver standalone 5G to all populated areas in the UK by 2030, and invest £40 million to drive take up of innovative 5G-enabled services for businesses and the public sector. It also sets out a comprehensive 6G strategy to harness and develop the UK's strengths in future telecoms, and to ensure that the UK can influence and benefit from the development of 6G in a way that meets the UK's future connectivity needs.

Key measures in the strategy
1. A new ambition of nationwide coverage of standalone 5G to all populated areas by 2030 - so everyone can benefit from new technology enabled by advanced wireless technology

2. A clear strategic framework to help the private sector invest in 5G networks by supporting strong competition and investment, driving down deployment costs and stimulating demand, including through

continuing to remove practical barriers to the deployment of 5G infrastructure
confirming our openness to market consolidation, noting that merger decisions are taken on their merits by the Competition and Markets Authority
ensuring that net neutrality rules are fit for purpose
asking Ofcom to review and set out a clear evidenced-based and forward-looking rationale for its approach to setting spectrum fees by the end of 2023
working with Ofcom and industry to refarm spectrum where it is not being used efficiently
maximising the UK’s influence at international spectrum negotiations, with alignment of international and domestic spectrum frameworks where possible
3. Fixing coverage reporting, including on trains and in rural areas, shining a light on where coverage needs to be improved

4. £40 million new funding to establish eight to 10 5G Innovation Regions across the UK. This will enable regions and local authorities to unlock opportunities using advanced wireless connectivity, tailored to each area’s specific needs and strengths, encourage 5G take-up in the public sector and in industry and strengthen the case for investment at the local level, driving productivity and growth.

5. Establishing a national taskforce to encourage take-up and investment at the local level

6. As part of wider plans to boost public sector adoption of 5G and other advanced wireless connectivity, ensuring new hospitals have access to 5G or similar advanced wireless connectivity, allowing major improvements in healthcare delivery.

7. Setting out a clear strategy for influencing the development of 6G, so the UK strengthens and maintains its role as a science superpower

8. Launching an £8 million fund to provide capital grants to further promote new satellite connectivity to the most remote 35,000 premises.

Investing up to £100 million in a new future telecoms mission
The 6G Strategy, set out in the Wireless Infrastructure Strategy, is supported by a new national mission to ensure that the UK is at the forefront of future telecoms technologies.

The 6G strategy sets out how we will work to shape the next generation of wireless technology. We want to ensure that 6G is developed to meet the needs of people and businesses right across the UK and support our international competitiveness throughout the economy.

The government has established future telecoms as one of its five critical priority technologies in our goal to be a science superpower by 2030.

Alongside the 6G Strategy we have therefore launched a new, long-term national mission, with initial funding of up to £100 million, to ensure the UK is at the leading-edge of future telecoms and 6G technologies.

These next generation networks will herald a new, richer generation of internet based services, power rapidly growing global digital economies and support net zero - from complex AI and quantum-enabled networks of satellites and drones, right down to fibre-optic networks beneath our feet.

A key element of this mission will be a series of Future Telecoms Research Hubs, where early stage research will be coordinated through UK Research and Innovation (UKRI) and the Engineering and Physical Sciences Research Council (EPSRC) via the Technology Missions Fund (TMF).

These Hubs will build on the springboard provided by EPSRC’s £6 million investment for three federated and connected platforms in the communications technologies space. Supported by the UK Telecoms Innovation Network (UKTIN), these platforms will engage with the telecoms sector, catapults and internationally around three broad themes: a network of networks; wireless and wired systems and spectrum; and, cloud and distributed computing.

The platforms will draw together the existing portfolio of EPSRC investments in telecoms-related areas into a coordinated approach.

These Hubs will help to develop an Intellectual Property (IP) portfolio to strengthen UK companies’ global competitiveness, as well as provide the foundation for spinout companies, and attract further industry investment in the UK’s world leading research base.

Support for early-stage research will be complimented by funding for application focussed ‘challenges’ - delivered via Innovate UK - supporting companies to accelerate innovative solutions to market and encourage disruptive collaboration across the UK’s diverse Future Telecoms landscape. This aims to cement early UK market leadership, additionally attracting follow-on investment for companies to scale-up and grow in the UK.

We will work closely with our international allies to deliver this mission - ensuring we are influential in shaping the global landscape, embedding our values into future telecoms technology, and protecting our security interests.

Funding opportunities for industry, researchers and others through this investment are available throughout 2023 and into next year as well. All funding will be awarded and managed by UKRI on behalf of UK government. Further information will be released shortly.

In addition, to inform our next steps beyond this Spending Review Period, we are commissioning a feasibility study to explore the potential for new infrastructure provision to improve competitiveness and drive growth in the UK telecoms sector and foster UK capability.

£8 million capital grants for satellite connectivity
We continue to make rapid progress through commercial and subsidised rollouts to achieve our goal of future proof and resilient connectivity to over 99% of the UK by 2030. Nevertheless there will be some areas - perhaps around 100,000 premises - where we expect that gigabit will not be possible.

The government has launched an £8 million fund to provide capital grants to further promote new satellite connectivity to the most remote 35,000 premises and to help ensure that these premises get improved broadband where required.

This work follows the launch of the government’s Alpha Trial programme in December 2022, to test the capability and viability of low earth orbit satellites to deliver high-speed connectivity to homes and businesses in very hard to reach areas.

The government has now launched a total of 7 sites across the UK using a mixture of both OneWeb and Starlink equipment. These sites include some of the most remote areas of the UK including Snowdonia National Park, North York Moors, Papa Stour and Lundy Island.

Further details on the value of the grants, which premises will be able to apply for the scheme and how they can apply will be released in due course.

Additional policy measures for those premises where we believe that Fixed Wireless Access connectivity will be possible will be brought forward later this year.

Rural 10 point plan
The Wireless Infrastructure Strategy sets out our 10 point plan to support rural communities access and adopt the connectivity they need to drive economic growth.

1. The £5 billion Project Gigabit will deliver future proof broadband to rural areas, with £1 billion already made available. (A new almost £14 million contract, announced today, will bring gigabit broadband connections to around 10,500 homes and businesses in the New Forest.)

2. In very hard to reach areas, where it will be uneconomic to deliver gigabit broadband, the government will work with industry to ensure that these premises get improved broadband, where required. This year we will:

launch an £8 million fund to provide capital grants to further promote new satellite connectivity to the most remote 35,000 premises
set out plans to encourage the provision of fixed wireless access to other hard to reach areas.

3. We are already investing £1 billion in the Shared Rural Network to deliver 4G coverage to 95% of the UK landmass, with the biggest coverage improvements in rural parts of Scotland, Northern Ireland and Wales. This will also:

deliver 4G coverage on a further 16,000 km of roads, with further indirect improvements over time, including a boost to ‘in-car’ coverage on around 45,000 km of roads
improve geographic coverage to 79% of Areas of Natural Beauty, benefitting millions of visitors every year.

4. We have asked Ofcom to improve mobile coverage reporting, including in rural areas

5. We are establishing a new headline nationwide ambition for 5G in all populated areas by 2030, and this will include connectivity in areas classified as rural - backed by measures that help improve economics of rural rollout

6. We are establishing a new £40 million 5G Innovation Fund to establish 5G innovation regions. Driving innovation and adoption of advanced wireless technologies across rural industries will be a key focus of 5G Innovation Regions - supporting 5G-enabled innovation everywhere.

7. We are funding a new 5G adoption campaign that will help support adoption and investment in key sectors, including agri-tech.

8. We are working with Ofcom to improve access to spectrum for rural network providers, making it easier for networks to be deployed and for innovative use cases to be realised.

9. We will be appointing a Rural Connectivity Champion to report DSIT and Defra Secretaries of State to support adoption of advanced wireless connectivity and promote innovation in industries like agriculture.

10. We are continuing to remove barriers to deployment in rural areas, including changing planning regulations, making it quicker and easier to roll out digital infrastructure.

A new strategic vision for spectrum policy
The Spectrum Statement sets out a new strategic vision and principles for spectrum policy. Maximising its usage across the public and private sector is critical to delivering our mission to position the UK at the forefront of global scientific and technological advancement, supporting research, innovation and growth across the economy while protecting critical services like defence and climate science.

Spectrum, the range of invisible electromagnetic waves, enables all wireless technology, from our mobile phones, Wi-Fi and Bluetooth devices to aircraft navigation and satellite applications, amongst many other uses. The devices and services that depend on spectrum now underpin almost every aspect of our economic and social lives.

Priority actions include working with Ofcom to enhance shared use of spectrum, reviewing our use of market mechanisms to support a strong investment environment and establishing a new framework to improve access to public sector spectrum.

This will mean better connectivity for people across the UK and better access to spectrum to support the new enterprise applications that will drive the economic growth, productivity and improved public services of tomorrow.

Flexi-permits to accelerate broadband rollout
The government is working with the local authorities and the telecoms industry to further trial the use of flexible permits (or ‘flexi-permit’) in a number of counties (such as in more rural areas).

Currently operators must apply for a permit to work in each individual street. Flexi-permits would allow telecoms companies to work in multiple streets under a single permit.

If successful, flexi permits could help the roll-out of broadband.