Matthew Howett, founder of Assembly Research, welcomed the move, saying that “for too long” BT had “kicked the problem of global into the long grass”. “While there is likely to be some short-term pain, the longer-term certainty around [the unit’s] future can only be a good thing for [the] group,” he added.
A new report from Assembly Research, commissioned by trade body Mobile UK, accused ministers of overlooking the mobile industry in the recent Planning and Infrastructure Bill, and called for reforms in the upcoming 10-year infrastructure strategy.
While much of the focus in recent years has been on broadband infrastructure,the report said ministers had done “relatively little to move the needle” for mobile operators.
The report said: “Investment in fast and reliable mobile networks is crucial to the UK’s plans to harness the power of AI and transform public services, including the NHS. It is therefore time the Government turns its messaging into action.”
After pouring billions into full-fibre broadband in the era of low interest rates, many investors are now starting to apply the brakes.
“I don’t think a pause is necessarily a bad thing,” says Matthew Howett, the chief executive of Assembly Research.
“Particularly at the moment, with the heat in the market and the race to the bottom with a £20 offer for full-fibre broadband, ultimately I don’t think it’s going to help anyone in the long term.”
Howett suggests Telefónica boss Murtra may simply be using a recent strategic review as leverage. “To me it feels like he is using this as a bit of an opportunity to get something from government to help the industry’s cause,” he says.
James Robinson, senior analyst at Assembly Research, said the trend followed well-known brands such as Tesco and Sky launching successful mobile operations that targeted existing customers with bundled packages which also included services such as broadband.
Robinson said he thought more than a quarter of all consumers could be using virtual providers by 2028 — up from 16.5 per cent in 2024. “If [Octopus and Revolut] do launch operations, those big names could accelerate that growth,” he added.
While the scale of Spain’s outage was unlike anything the country has experienced before, increasing extreme weather events are prompting governments to focus more on the resilience of telecoms networks.
In Norway, operators must fund battery backup of two hours in cities and four hours in rural areas. Australia has introduced publicly funded grants for operators to provide 12 hours of battery backup to sites in some remote areas.
The causes of the Spanish blackout remain undetermined but its scale was likely to be “a clarion call for government and regulators to pay attention to resilience,” said Grace Nelson, an analyst at Assembly Research, a UK based research company.
