With many UK businesses prioritising digitisation, a strong network connection is becoming a key driver of the nation’s economy. This is why the UK government has invested £40 million in extending 5G coverage to all populated areas of the nation by 2030.
A reliable network connection is arguably most crucial for small and medium businesses. With narrower margins for SMBs, every minute of downtime results in significant revenue loss, potentially jeopardising their profitability.
SMBs account for 99.9% of the UK’s private sector with more than 5.6 million in operation, and they have been suffering under the pressures of increased interest rates, energy costs and wages in the wake of the pandemic and energy crisis. Research from PayPal published in May 2024 revealed that 64% of SMBs have not expanded in the last three years.
A faster, stabler and more secure 5G connection could offer SMBs a lifeline by, for example, enabling them to use IoT technologies that improve productivity and reduce waste. It could also improve communications between remote employees and increase the reliability of payment systems, ultimately presenting the opportunity to expand.
TechRepublic spoke to UK telecommunications experts to find out how SMBs can continue to thrive during the transition between 3G switch-off and 5G rollout and ensure they get the most out of their new connectivity.
How can UK SMBs prepare for 5G?
Create a technology roadmap
Claire Harris, the head of small, medium and enterprise business at Vodafone UK, said that creating a “technology roadmap” can help SMBs make the most of 5G when coverage is extended to their area.
She told TechRepublic, “Spend some time working with a digital partner to work out how 5G could help overcome some of your business challenges such as communicating better with customers. Review your current business operations and how they may need to adapt to enable 5G technology.
“It’s worth having a clear plan for the year with specific milestones of technology you wish to upgrade to be 5G-enabled to help fulfil your digital ambitions.”
Ensure infrastructure is 5G-compatible
Chris Sims, managing director of small and medium business at BT Group, added that part of this plan should involve checking that existing infrastructure is 5G-compatible. He told TechRepublic in an email, “5G is up to ten times faster than 4G, but might not be compatible with older devices, so it is important to make sure critical infrastructure for your business, such as mobile phones or tablets, is ‘5G-ready.’
“If you’ve already invested in 5G-ready devices, but your business is based in an area not yet covered by 5G, don’t worry — your devices will still work on 4G, and will automatically switch to the new system once coverage expands.”
Review how 5G impacts customers
It is important to remember that customers are going to be impacted by the 5G rollout, too. Customers will want to make the most of connectivity when they have access, so they will need their digital devices to be 5G-ready.
Sam Jackman, chief development officer at mobile connectivity operator Shared Access, told TechRepublic in an email, “If an SMB sells products that require connectivity, legacy products may need to be replaced or upgraded to be able to connect to 5G services rather than legacy 3G or Wi-Fi.”
If an SMB is considering amending its service offering so that it relies on 5G, the customer must be informed in advance. “It’s imperative they are clear if there are any cost changes based on the new 5G services so they can communicate this information before their customers receive an increased bill,” Jackman said.
Review contracts with network operators and other services
“While all mobile network operators may say they offer 5G, some may have faster or better coverage provision than others,” Jackman told TechRepublic.
Harris added, “It’s important to make sure your mobile data plan covers all the usage you will need.”
If 5G has not already been extended to the SMB’s area, they can consider switching to the operator that will do so most quickly or offer them better 4G coverage in the interim. Jackman added, “It’s very probable that existing contracts can be changed to rely on other services provided by the same mobile network officer.
“Services like RootMetrics release data on which MNOs have the best speeds and coverage areas across the country.”
In addition, Jackman said it is important to consider if any services used by the SMB, like phone or payment systems, are not 5G-ready. He told TechRepublic, “Ensure that any contracts for services used by the SMB are contracts that include 5G provision, otherwise SMBs will not be entitled to receive the benefits of 5G services.”
Consider a private 5G network
If the local area is unlikely to be provided with 5G for a long time or the 5G connectivity is insufficient, SMBs could consider setting up a private 5G network.
“(A private 5G network) entails a local area agreeing with the regulator Ofcom to deploy a dedicated and localised part of a spectrum band for specific use cases,” Jackman told TechRepublic. “This would negate the threat of zero coverage, zero capacity scenarios.”
SEE: Ericsson Helps Nestlé Deploy First Private 5G Network in Latin America
Richard Foggie, knowledge transfer manager of digital economy and Internet of Things at Innovate UK Business Connect, said private 5G networks are typically set up in “estate-based” locations like ports, logistics centres, stadia, transport hubs and campuses where it would serve many different use cases.
He told TechRepublic, “Standalone 5G allows you to use all the features of 5G networks, like slicing or multi-access edge computing, to fine tune your data architecture to your operations. Check to see if there’s an ‘anchor tenant’ on your business estate or park, or think about becoming one.”
When will 5G be rolled out nationwide?
In April 2023, the government revealed its aim to extend 5G coverage to all populated areas of the UK by 2030 with a £40 million investment. Vodafone contributed to this goal by pledging to provide 95% of the population with 5G by 2030 to “close the digital divide” between urban and rural areas.
SEE: 4G “Unlikely” to be Extended to 95% of UK by End of 2025
The first commercial 5G networks went live in London, Edinburgh, Belfast, Cardiff, Birmingham and Manchester in 2019. Since then, more “non-standalone” networks have been built nationwide that take advantage of legacy 4G equipment. Faster and more secure “standalone” 5G infrastructure has only been switched on in the UK by Vodafone and Virgin Media O2 so far.
Ofcom estimates that, as of 2023, between 85% and 93% of premises in the UK had 5G available outdoors from at least one operator.
Why is 5G important to SMBs?
2G and 3G networks are being switched off
5G availability should be a priority for SMBs for a number of reasons, including the fact that the alternative 3G and 2G networks are being switched off.
All major operators have confirmed to the government they will phase out 3G by 2033. Vodafone and BT (EE) have already phased out 3G, while Three and O2 plan to by the end of this year and 2025, respectively. Shutting down 3G intends to free up radio spectrum bands so they can be repurposed for faster, more reliable 4G and 5G networks. These services are also more energy-efficient, which will help reduce operating costs and power consumption.
This puts more pressure on the nationwide 5G and 4G rollouts, as businesses still reliant on these signals could be left without connectivity. Data from telecoms regulator Ofcom shows that, as of late 2023, there were still around 2.4 million devices reliant on 2G or 3G networks, although 3G only makes up 3% of network data traffic.
5G will lead to productivity savings
Research from Vodafone found that UK SMBs are missing out on up to £8.6 billion a year in productivity savings due to the slow rollout of standalone 5G by the government. This is because the lack of “connectivity and digital competitiveness” that reliable 5G would bring is preventing them from scaling up their operations.
5G will enhance business productivity in numerous ways, including:
- Real-time data monitoring with IoT devices and sensors that are optimised for 5G networks. Such devices enable predictive maintenance, which can prevent downtime, increase efficiency by providing visibility over production schedules and reduce waste in both time and materials.
- Faster communications for remote workers. 5G can be a reliable alternative to broadband for a disparate workforce communicating via email, instant messenger and video call, reducing disruptions.
- Reliable payment systems and other services that require constant connection. 5G provides a robust alternative mode of connection, reducing revenue losses stemming from downtime.
Rural and remote businesses are in desperate need of connectivity
Research from Vodafone published in November 2023 found that 46% of deprived rural areas do not have any 5G coverage, whereas that figure is 2.7% for deprived urban areas. Furthermore, a report from the Federation of Small Businesses shows that 47% of small businesses in rural areas experience unreliable data connectivity. Therefore, remote SMBs stand to benefit considerably from a 5G network.
The expansion of 5G to rural areas could mean that more businesses can take advantage of IoT devices for agricultural work, such as soil, weather and equipment monitors. According to Vodafone, the average farmworker could save the equivalent of more than three weeks of their time by utilising 5G technologies, and the sector as a whole could save £112 million a year from the boosted productivity.