Freshwave, a Digital Bridge-backed towerco and neutral host in the UK, has warned that UK economic growth is at risk due to current indoor connectivity limitations. Towercos have been increasing their investment into in-building connectivity but business model risk has held back rollout as operators, building owners and government fail to align on pricing and investment.
Freshwave Mobile Connectivity ROI Index surveyed 900 C-suite executives and IT decision-makers from organisations with over 100+ employees. Cumulatively it is estimated that they lose £100bn annually by failing to fully take advantage of the available connectivity services. Up to 70% of this could be mitigated through improving indoor connectivity, equating to added value of £70bn per year across the UK economy.
Two further startling statistics jump out: 87% of organisations experience daily connectivity issues. Respondents estimated that just 5 minutes of poor connectivity per day translate to a 1% annual loss in productive time. However, despite this inbuilding connectivity still lags behind outdoor coverage.
Investing in better in-building mobile connectivity, such as 4G or 5G coverage, would reduce disruption and support revenue growth, increase operational performance, and drive higher customer satisfaction. Simon Frumkin, CEO of Freshwave, commented: "The UK economy simply cannot afford to lose £100bn every year. That is why massive investments have been made in digital infrastructure over the past decade. We must now build upon this platform and ensure seamless mobile connectivity extends to wherever people want to use it."
The research release is notable for targeting government, private enterprise, the public sector, landlords, construction firms and mobile operators. Frumkin expanded with "The prize will be £70bn of added value for businesses, so it’s little wonder the majority expect to invest in mobile technology over the next two years."
While the £70bn estimate by Freshwave is an upper bound on the economic benefits it illustrates the hold up problem face by in-building connectivity providers in securing buy-in from the multiple stakeholders required for investment.
