4G or not 4G?

With the UK lagging behind less-developed countries when it comes to the next-generation mobile network, and one operator in particular driving 4G adoption. Sara Yirrell examines the state of play

It does not matter where you go nowadays, you are likely to see someone with a smartphone stuck to their ear or the end of their arm.

There is no escape. But it is common knowledge that the old network is creaking under the strain and the increasingly heavy data demands of smartphone and tablet users.

People expect to be able to use their device wherever they go in the UK, but quite often they are left talking to thin air as their reception drops out, or, in the classic train scenario, they enter a tunnel.

Because of the legacy network infrastructure in the UK, we have been overtaken by developing nations when it comes to 4G adoption. Nearly three dozen countries, including the US, already have 4G. Quite simply, we are being left behind.

Recently, mobile network Everything Everywhere (EE) – the joint venture between Orange and T-Mobile – commissioned some research that claimed deploying 4G technology could give the UK economy a much-needed multibillion-pound shot in the arm by the end of the decade.

“Once a ‘yuppie’ fashion accessory, mobile has grown to be the dominant telephone technology and especially important for business,” the report said. “It has also become a significant industry in its own right. Network operators employ about 35,000 people directly, which is more than the pharmaceutical sector. This rises to 56,000 when taking into account the jobs supported in their supply chains.

“They turn over annual revenue of nearly £20bn and contribute £4bn per annum to national economic output.”

As an aside, the report caused an outcry from EE’s competitors, who claimed the firm was only campaigning for 4G to ensure it has exclusive rights to deliver the services using its 1,800MHz spectrum.

A claim that was swiftly denied by the network operator, which insisted it had brought out the report for the greater good.

As this article went to press, regulator Ofcom was yet to decide what happens to the 1,800MHz spectrum after a consultation period.

According to the report, which was carried out by market research firm Capital Economics, rolling out 4G would create 125,000 jobs in a year and add 0.5 per cent growth to the UK’s GDP.

This in turn would save businesses 37 million hours each year by not having to watch clunky devices download data over 2G, 3G or 3.5G technology, it said. EE claimed the cost of deploying the equipment to support 4G in the UK will be in the region of £5.5bn, spread over three or four years. Compare this with the £7.3bn cost of the Olympics, it urged.

Rob Bamforth, service director at analyst Quocirca, said EE was just trying to press its advantage in the market.

“I think they are trying to maximise the advantage that they have. They certainly do have an advantage, but I cannot see that it will stay that way in the long term. They are making hay while the sun shines, which is quite reasonable,” he said.

Poor coverage

However, Bamforth said all mobile operators were at fault for not delivering total mobile coverage across the UK in the first place.

“You can go through whole swathes of the country and it doesn’t work. For example, travel down the M3 or on a commuter line less than an hour from London and the signal drops out. They all need to work on improving their coverage.

“As we head towards 4G I do not see why they shouldn’t provide more ubiquitous coverage. Instead of placing masts where people already live and where businesses are based, which is their current strategy, they should look at the more remote areas.

“We definitely need better coverage in the UK. For example, if you have been to France, Germany or Italy recently, [you will have noticed that] while driving through some fairly remote areas, you still get good signal coverage.”

He added that 4G is a necessary development, but one which may not be sufficient. “Given the appetite we have for mobile access, 4G will be very necessary and we will probably be very quickly swamped or at best very highly used – all dependent on the devices and price plans coming out. I think it will have a faster and more positive adoption than 3G. There is definitely an opportunity for the wider industry and I can understand why EE are pushing their advantage now.”

A recent YouGov report, released last month and commissioned by EE, revealed that 82 per cent of UK adults believed adopting new technology such as 4G networks is vital for the UK to remain competitive and protect jobs.

The results also revealed that 74 per cent wanted to bring 4G networks into play as soon as possible. Furthermore, when asked why 4G was important, 66 per cent of respondents said they think it is important for the UK to catch up with other countries and stay competitive, 58 per cent said they wanted faster internet connections and 45 per cent said it was important for the economy and job creation.

Finally, 35 per cent said they wanted better mobile phone coverage to be able to make calls in more places.

Olaf Swantee, chief executive of Everything Everywhere, said at the time: “Consumers are calling for the fast and reliable broadband that 4G LTE can provide – and they want it now. With nearly three dozen countries, including many parts of Europe, Asia and America having already rolled out 4G, it is imperative that the UK moves forward with building a 21st-century digital infrastructure as soon as possible.”

A 4G rollout would also be a lucrative move for the channel.

Bruce Hockin, head of solutions strategy at Avnet Technology Solutions UK, said it would open up new opportunities. “The higher speeds of 4G will encourage the further adoption of new services and applications, such as visually rich mobile collaboration and HD video, extending the value of mobile applications into the enterprise,” he said. “Additionally, 4G should drive BYOD adoption as it will help increase the productivity of people using applications outside the traditional enterprise network.”

Dave Ellis, director of new technology and services at Computerlinks, agreed. “In general, 4G should be very good for the economy and will help to enable advanced services that current networks cannot support,” he said. “However, experience with 3G has shown that outside of metropolitan areas, coverage can be poor and this could be repeated with 4G networks. This will create opportunities for the channel to provide satellite business internet connectivity to business users who are reliant on always being connected.”

GOVERNMENT BLAMED FOR INVESTMENT FAILURE

The government has come under fire for not investing in UK connectivity and consequently putting the country at a disadvantage when compared with the likes of Scandinavia and Japan. A panel of business and technology experts brought together by hosting specialist UKFast agreed that a better understanding from the ruling political parties of the importance of a fast and reliable network could benefit the country as a whole.

Hosein Moghaddas, chief business officer at Mobile Money Market, said: “The government has an inherent responsibility to get us all connected with high-speed WiFi and that means investment in infrastructure. I believe we should be lobbying government for this. It should be a given.”

Lawrence Jones, chief executive of UKFast, said businesses need to be able to cope with increased amounts of traffic.

“The key thing is that when nations become more connected, people have access to internet services at all times. Businesses need to be correctly prepared to be able to cater for that,” he added.

STAND OUT STATS

82 per cent of British adults expressing an opinion said that adopting new technology such as 4G is vital for Britain to remain competitive

74 per cent want to bring 4G networks to the country as soon as possible

66 per cent said they think it is important for the UK to catch up with other countries and stay competitive

58 per cent said they would like to access faster internet connections

45 per cent said 4G is important for the economy and job creation

35 per cent said they would like better mobile phone coverage and to be able to make phone calls in more places