UK telecoms executives warn mobile delays threaten AI competitiveness

UK telecoms executives are warning that inadequate mobile network upgrades could cause the country to fall behind in the global artificial intelligence race. While datacentre capacity and power supplies have dominated infrastructure discussions, leaders say the mobile networks required to carry massive AI traffic are failing to keep pace.

This lag poses a direct threat to national competitiveness and future corporate adoption. According to consumer group Which? and data from Opensignal, UK mobile coverage trails all 27 European Union member states and every other G7 nation. The UK currently ranks 57th globally for network performance, 70th for download speeds, and 55th for reliable connection quality.

Andrea Donà, networks director at VodafoneThree, the UK’s largest mobile operator, highlighted the impending capacity crunch. “If with the technology and services we use today [networks] are sub-optimal, imagine when you add mass AI usage and other associated activities,” Donà said. He compared current signal failures at major events like Wembley or Silverstone to a mere proxy for the constant capacity demands an AI-driven economy will require.

Another senior executive noted that while the connectivity issue remains nascent, it will mirror the economic drag previously caused by slow full-fibre broadband deployment. “Things are going to change massively with the next wave of devices, in two or three years when AI is integrated into everything,” the executive stated, warning that governments and AI firms will soon realize networks are holding them back.

Operators are committing significant capital to address the deficit, with VodafoneThree allocating £11bn to upgrade masts for 5G stand-alone technology. However, the industry argues that bureaucratic planning delays are stifling this investment. VodafoneThree is actually reducing its total mast count by 30 per cent, yet 96 per cent of its required upgrades are on existing sites.

More than half of these existing site upgrades still require formal planning permission, a process companies describe as lengthy and restrictive. Donà argued that reforming this system is the “lowest possible cost growth policy” because it requires no government expenditure, calling it a potential early win for the new prime minister.

Beyond planning hurdles, operators face a structural tax disadvantage. Despite being classified as critical national infrastructure alongside datacentres, energy, and water systems, mobile networks do not receive the business rates and energy reliefs granted to those other sectors.