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VodafoneThree calls for policy changes to drive UK mobile growth

Mobile network operators in the UK are battling with energy costs, planning red tape and regulations, all of which are impacting their investment plans

A global index looking at the challenges faced by mobile network operators (MNOs) in 10 countries has revealed the UK compares poorly against other countries.

The Mobile market index from VodafoneThree shows that UK operators face the third-highest commodity energy prices. The average score UK MNOs gave for volatility in the energy market was 64%, 10% more compared with the average across the 10 countries in the index.

The index shows that challenges in the operating environment for MNOs, high energy and property costs, infrastructure obligations and planning friction translate to suboptimal outcomes for the UK in relation to performance on download speeds, 5G coverage and connection quality, with those metrics trailing nearly every other country in the index.

Earlier this year, the UK government announced its Mobile market review as it plans where the UK should be in terms of high-speed connectivity by 2030. It is currently looking for input from interested parties regarding how mobile network connectivity in the UK can evolve as part of the review. At the end of March, when the call for evidence for the Mobile market review was announced, Liz Lloyd, minister for digital economy, said: “If we want a more prosperous, innovative and inclusive UK, world-class connectivity is not optional, it is essential.

“Mobile connectivity sits at the heart of this mission,” she said. “Fast, reliable and secure mobile networks will support everything from remote healthcare to cutting-edge manufacturing, from smart cities to the everyday services that we all now rely on. That is why we are setting out a framework so that everyone in the UK can benefit from high-quality mobile connectivity, delivered by the latest technology – standalone 5G by 2030.”

What is clear from the VodafoneThree index is that mobile network operators look like they are pushing for a less regulatory environment, easier planning permission and lower energy costs to support further investment in the UK’s mobile network infrastructure.

According to VodafoneThree, the cumulative impact of the pressures UK MNOs experience is impacting the service they are able to provide compared with MNOs in other countries. It said the current environment limits operators’ ability to monetise the full extent of their network and invest sustainably in the digital infrastructure the UK needs to meet the demands of the future.

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Commenting on the investments Vodafone has made since its merger with Three in May 2025, VodafoneThree networks director Andrea Dona said: “Since the merger, we have raised the bar for connectivity in the UK, eliminating thousands of not spots and providing millions of people with access to our fastest 5G speeds.”

The index shows that affordability and competition remain central, but they need to sit alongside a stronger focus on investment, resilience, security and advanced network capability. VodafoneThree said it wants the government to consider modernising the planning system for the roll-out of 5G connectivity. It is also calling for energy reform to recognise MNOs’ status as providers of critial infrastructure. VodafoneThree said that mobile network operators deliver critical national infrastructure, but they are not covered by the various industrial schemes supporting other sectors that deliver CNI.

From a regulatory standpoint, Vodafone described the UK as an outlier on 5G regulations, with significant barriers to using network slicing technology to boost speed and bandwidth.

“Fast, reliable and quality mobile networks are a fundamental driver of economic growth and prosperity,” said Dona. “Which is why we support the UK government’s efforts to examine the barriers holding back our mobile networks. Bringing the UK’s investment environment up to the standard of our international peers could help to support public services, eliminate digital divides and enable communities to thrive.”

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