The rollout of nationwide 5G Standalone (SA) networks will revolutionise road and rail journeys in the UK, generating £3 billion for the economy, according to recent modelling by Vodafone and WPI Strategy.
The deployment of 5G SA across the UK is predicted to contribute £1 billion annually to the local economy by improving connectivity for remote workers on trains. Regular road users are also set to benefit from £2 billion in fuel savings each year.
The modelling, based on new survey data about working and connectivity patterns on trains, estimates that up to 28.2 million train journeys per year in the UK are currently missed opportunities for working due to poor connectivity. If these journeys were transformed with reliable 5G SA, they could contribute an additional £1 billion to the UK economy through increased productivity. Furthermore, train users could save 26 million hours through fewer delays.
The role of 5G SA in reducing train delays could also result in savings of £10 million in compensation for delays, which could then be reinvested into vital infrastructure. Meanwhile, reduced congestion and fewer delays for freight drivers, thanks to 5G-enabled devices on UK roads, could lead to productivity savings of £140 million annually for businesses by easing traffic, enabling smarter journeys, and making deliveries more efficient.
Andrea Donà, Chief Network Officer at Vodafone UK, stated: “The national rollout of a 5G SA network has the potential to transform connectivity on the UK’s roads and railways. Across road and rail alone, it could unlock £3bn a year for the UK through boosted productivity and by saving fuel costs through smoother journeys.”
“Without the proposed merger between Vodafone UK and Three UK, the UK misses out on an £11bn self-funded infrastructure investment to deliver 5G Standalone to 95% of the population by 2030 and 99% of the UK population by 2034,” the executive added.
Last year, Vodafone UK, owned by Vodafone Group, and Three UK, owned by CK Hutchison Holdings, announced a joint venture agreement to combine their operations under a single network provider. Under the terms of the proposed merger, Vodafone will own 51% of the new entity, while Hutchison Group will own 49%.
Vodafone and Three recently expressed opposition to the provisional findings of the UK’s Competition and Markets Authority (CMA) regarding their proposed merger, asserting that the transaction is pro-competitive.
Vodafone and Three are actively engaging with the CMA and remain hopeful of gaining approval. In their response to the CMA’s remedies notice, the companies have included additional commitments aimed at addressing the concerns raised.
In their forthcoming response to the CMA’s provisional findings, Vodafone and Three intend to detail how the merger will promote growth, improve customer experiences, encourage investment, and boost competition.
The CMA’s final decision on the merger is expected on 7 December.
Last month, an in-depth investigation by the CMA identified competition concerns related to Vodafone’s planned merger with Three.
The inquiry, conducted by an independent group, provisionally concluded that the merger could lead to price increases for millions of mobile customers in the UK or result in reduced services, such as smaller data packages in contracts.
The regulator has also provisionally found that the merger would negatively impact mobile virtual network operators (MVNOs), as it would reduce the number of network operators from four to three, making it harder for MVNOs to secure competitive terms for their services.
Consequently, the CMA has provisionally concluded that the merger would result in a substantial lessening of competition in both retail and wholesale mobile markets in the UK.
The CMA outlined various remedies it plans to explore, including “binding investment commitments overseen by the sector regulator, and measures to protect both retail customers and those in the wholesale market”.
The CMA also noted it retains the option to block the merger if other remedies fail to adequately address its competition concerns.
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