London,
29
April
2012
|
00:00
Europe/London

4G to provide UK with annual economic boost reaching 0.5% GDP by end of the decade

Independent research released today from Capital Economics, commissioned by Everything Everywhere,  the UK’s largest communications company, has found that Britain will see significant economic and social benefits from the introduction of 4G LTE mobile broadband.

The research found that the introduction of fourth generation, or 4G, mobile networks has the potential to[1]:

  • Add 0.5 per cent[2]– equivalent to £7.5bn per annum – to UK Gross Domestic Product (GDP), or circa £75bn after 10 years [3]
  • Unlock £5.5 billion of direct private investment into the UK economy by 2015 (in addition to revenue from government spectrum auctions)
  • Create or safeguard 125,000 UK jobs
  • Provide access to mobile superfast broadband to at least 10 million people who won’t be able to get fixed line superfast broadband by end of the decade

The report’s author, Mark Pragnell of Capital Economics said: “The introduction of 4G mobile broadband will create substantial long-term benefits for the economy and consumers, ultimately boosting UK GDP by as much as half a percentage point. The near-term £5.5bn private industry investment we project is substantial – and opportune for the wider economy given the recent investment slump.”

4G mobile networks can deliver significantly faster and more reliable mobile internet connections. The research shows that rolling out 4G will kick start a new cycle of investment and innovation in internet services and mobile devices for consumers, and productivity benefits for businesses.

It also shows how giving Britain a world class digital infrastructure will make it more globally competitive and attract new business start-ups.

Olaf Swantee, CEO of Everything Everywhere, said: “This research highlights the significant economic and social benefits that 4G will bring to the UK – already enjoyed in over 30 countries around the world.”

“The UK has the highest levels of smartphone penetration and mobile commerce in Europe, and Britons deserve to have the best infrastructure in place to support this growth.”

Everything Everywhere has also launched a website at www.4GBritain.org for organisations and individuals to learn more about 4G and say why they want it to be introduced in the UK.  The website features commonly asked questions about 4G and features the new Capital Economics research, with links to other independent reports on the benefits of 4G mobile broadband on society and the economy.

[1] Based on conservative 4G coverage roll out to 95% of the population

[2] Based on projected industry wide roll out of 4G starting at the latest in 2012

[3] Figure based on subsequent decade after full adoption

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Notes to Editors:

Independent analysis and comment available from:

Kester Mann, CCS Insight, +44 (0)7702 942000, Kester.Mann@ccsinsight.com

Matthew Howett, Ovum, +44 (0) 20 7551 9157 or +44 (0) 7900 365 304

matthew.howett@ovum.com

Research available on request and at http://www.4gbritain.org/mobile-broadband-and-the-uk-economy/

Infographics available on request and at http://www.4gbritain.org/infographic/

About EE

EE is the most advanced digital communications company in Britain, providing mobile and fixed line services to 27 million customers, and will soon become the first company in the UK to provide 4G mobile services alongside fixed-line fibre.

EE is the company that runs the Orange and T-Mobile brands in the UK, and will be launching its new superfast 4G brand – EE – in the coming weeks.

Its 4G service will cover a third of the population by the end of 2012 and its fibre service will cover 50% of the population by the end of the year.

EE’s mobile service currently provides coverage to 99% of the population with 2G and 98% of the population with 3G.