With a focus on digital transformation in UK businesses, the importance of a robust network connection is increasingly recognized as a driver of economic growth. To support this, the UK government has allocated £40 million to expand 5G coverage to all populated areas of the country by 2030.
Small and medium businesses (SMBs) are particularly reliant on a stable network connection due to their limited margins. Any downtime can lead to significant revenue losses, posing a threat to their profitability.
SMBs make up a significant portion of the UK private sector, with over 5.6 million in operation. However, many have faced challenges such as rising interest rates, energy costs, and wages in the aftermath of the pandemic and energy crisis. A study by PayPal in May 2024 revealed that 64% of SMBs have not expanded in the past three years.
The introduction of a faster, more reliable, and secure 5G connection could be a lifeline for SMBs, enabling them to leverage IoT technologies for increased productivity and efficiency. It could also enhance communication among remote employees and improve the reliability of payment systems, opening up avenues for growth.
To navigate the transition from 3G to 5G, SMBs can benefit from guidance provided by UK telecommunications experts on maximizing the potential of their new connectivity.
How UK SMBs Can Prepare for 5G
Create a Technology Roadmap
Developing a “technology roadmap” can assist SMBs in leveraging 5G technology effectively once coverage is extended to their area. Collaborating with digital partners to understand how 5G can address business challenges, reviewing current operations for necessary adaptations, and setting clear technology upgrade milestones can contribute to achieving digital goals.
Ensure Infrastructure is 5G-Compatible
Verifying the compatibility of existing infrastructure with 5G is essential. Ensuring critical business devices like mobile phones and tablets are ‘5G-ready’ is crucial for seamless integration. Even if 5G coverage is not yet available, having 5G-ready devices ensures compatibility with the new network once it is accessible.
Review Customer Impacts of 5G
Considering the impact of 5G on customers is paramount. Customers will require 5G-ready devices to fully benefit from the enhanced connectivity. Businesses selling products that rely on connectivity may need to upgrade legacy products to connect to 5G services, ensuring a smooth transition for consumers.
Review Contracts with Network Operators and Services
Evaluating contracts with network operators and service providers is crucial. Ensuring that mobile data plans cover required usage and exploring alternative operators for better 4G coverage or faster 5G deployment can optimize connectivity benefits. Contracts for services must also include 5G provisions to leverage the advantages of 5G services.
Consider a Private 5G Network
In situations where public 5G coverage is limited, setting up a private 5G network can be a strategic choice for SMBs. This approach involves collaborating with regulators to deploy a dedicated spectrum band for specific business needs, ensuring reliable connectivity and tailored network capabilities.
Timeline for Nationwide 5G Rollout
The UK government aims to extend 5G coverage to all populated areas by 2030 through a £40 million investment. Key operators have committed to providing significant coverage by this target year, bridging the digital gap between urban and rural regions.
The initial rollout of commercial 5G networks commenced in major cities in 2019, with further expansion planned to ensure broad coverage. As of 2023, outdoor 5G availability from at least one operator reached between 85% and 93% of premises in the UK.
Significance of 5G for SMBs
Transition from 2G and 3G Networks
With the sunset of 2G and 3G networks on the horizon, SMBs must prioritize 5G adoption to stay connected. Major operators have committed to phasing out 3G by 2033, signaling the shift towards faster, more efficient 4G and 5G networks. The closure of 3G networks aims to enhance network performance and reduce operational costs.
As of late 2023, around 2.4 million devices in the UK still rely on 2G or 3G networks, highlighting the importance of transitioning to newer technologies for sustained connectivity.
Productivity Gains with 5G
Research indicates that UK SMBs are missing out on significant productivity savings due to the delayed rollout of standalone 5G networks. Improved connectivity and digital competitiveness offered by 5G can empower SMBs to scale their operations efficiently.
5G facilitates real-time data monitoring, faster communication for remote workers, and reliable payment systems, enhancing overall business productivity and operational efficiency.
Enhanced Connectivity for Rural Businesses
Rural SMBs, in particular, can benefit from expanded 5G coverage to address connectivity challenges. The adoption of IoT devices in agricultural settings and the utilization of 5G technologies can lead to substantial productivity gains and operational efficiencies.
By leveraging 5G capabilities, businesses in remote areas can bridge the digital divide and capitalize on new opportunities for growth and innovation.
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