Source · Select Committees · Public Accounts Committee
Recommendation 33
33
Acknowledged
Department reluctant to directly fund 5G infrastructure, prioritizing commercially-led rollout approach
Recommendation
The mobile service company Ericsson wrote to us about the UK National Infrastructure Commission (NIC) Second National Infrastructure Assessment which stated that the government should prepare to act fast to support 5G deployment in areas where the market is unwilling to deliver.64 The Department told us it is reluctant to spend public money on building infrastructure that the private sector would build for itself “within 56 C&AG’s Report, paras 15, 4.3, footnote 8 57 Qq 53–54, 57 58 Q 62; C&AG’s Report, para 15 59 Qq 17, 52, 55; C&AG’s Report, para 4.4 60 C&AG’s Report, para 15 61 Qq 52–53, 61 62 Q 56 63 Q 58 64 Ericsson (SMC0006) 18 Supporting mobile connectivity a reasonable timeframe”. It told us that its policy is that the roll-out of infrastructure should be commercially-led and that it currently has no plans to directly support 5G roll-out in the same way as it did for 4G. It was waiting to see how willing the mobile network operators are to invest and how far the commercial roll-out gets before deciding if government investment is needed.65
Government Response Summary
The government reaffirms its commercially-led approach to 5G deployment without subsidy, stating it monitors progress, implements demand/supply interventions, and continues to work with industry to understand future intervention needs. It highlights ongoing programmes like Open Networks and 5G Innovation Regions.
Government Response
Acknowledged
HM Government
Acknowledged
7.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2025 7.2 Standalone 5G deployment by the MNOs is funded by commercial investment, with no government subsidy. That is why the department set an ambition for standalone 5G to all populated areas, rather a specific target, through the Wireless Infrastructure Strategy. The department monitors progress against its ambition by using the 5G coverage data published in Ofcom’s Connected Nations report. The Strategy also included a comprehensive framework of demand and supply side interventions to support 5G deployment by the MNOs. The department continues to work with industry to understand what further interventions are needed to support 5G investment. 7.3 The 5G Testbeds and Trials programme, completed in 2021, highlighted the benefits of 5G and tested innovative applications and deployment methods. This helped businesses and the public sector understand the benefits of 5G, how to adopt them and accelerated the development and deployment of open interface architectures. The interim evaluation for the programme was published in 2023 and informed the government’s 5G ambitions set out in the Wireless Infrastructure Strategy. 7.4 The Open Networks Programme, which aims to support diversity of supply in the UK’s 5G supply chain, and the 5G Innovation Regions are still in delivery. The 5G Innovation Regions are delivering 5G solutions across the UK, helping the public sector and businesses develop their use cases for 5G while building up local infrastructure. The department will provide an evaluation of these programmes following their conclusion in 2025.