Slash taxes to boost Britain's 5G coverage, Starmer urged
Mobile networks have urged Sir Keir Starmer to slash taxes to help improve Britain's sluggish 5G coverage.
The UK's four network operators – EE, Virgin Media O2, Vodafone and Three – have warned that burdensome fees and taxes were hampering their ability to make the investments required to improve mobile signal across the country.
The companies singled out so-called spectrum licence fees, which they say are costing the industry roughly £320m a year.
While regulator Ofcom has proposed to slash these fees by £40m as part of an ongoing review, mobile firms called for the money to be diverted back into network investment rather than being funnelled to the Treasury.
They also called for a business rates holiday on new mobile masts, similar to the tax relief offered to full-fibre broadband companies in 2017.
Poor mobile coverage has become a major political issue in recent years, with MPs warning that patchy signals are harming consumers and damaging productivity.
Ofcom is currently reviewing the way it measures mobile coverage after Chris Bryant, telecoms minister, raised concerns about 'over-optimistic' reporting of signals by the regulator.
A new report from Assembly Research, commissioned by trade body Mobile UK, accused ministers of overlooking the mobile industry in the recent Planning and Infrastructure Bill, and called for reforms in the upcoming 10-year infrastructure strategy.
While much of the focus in recent years has been on broadband infrastructure, the report said ministers had done 'relatively little to move the needle' for mobile operators.
The report said: 'Investment in fast and reliable mobile networks is crucial to the UK's plans to harness the power of AI and transform public services, including the NHS. It is therefore time the Government turns its messaging into action.'
Other recommendations included a reform of planning laws to make it easier to expand and upgrade mobile infrastructure, and greater support for operators' plans to retire their ageing 2G networks.
The operators also called for guarantees that funds already committed to a £1bn project to tackle signal 'not spots' in rural areas will be retained for other areas, such as coverage on railways, amid concerns ministers are planning to scale back the programme.
Hamish MacLeod, chief executive of Mobile UK, said: 'The Government has rightly identified growth as its top priority and called on the UK's telecoms industry to help strengthen the economy. Now, it's crucial for the Government to prioritise mobile infrastructure, enabling operators to accelerate investment in coverage and capacity.
'This will be fundamental to underpinning growth and fostering innovation throughout the UK economy, and the upcoming Spending Review and Infrastructure Strategy are key moments to demonstrate this commitment.'
A government spokesman said: 'Access to fast and reliable mobile coverage is critical to help boost economic growth and realise our Plan for Change.
'We are on a mission to deliver higher quality 5G standalone coverage to all populated areas of the UK by 2030. This includes removing planning barriers and putting in place the right policy and regulatory framework to support investment and competition.'
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