Improved mobile connectivity could help create 49,000 new businesses across the UK and grow the economy by £6.6 billion a year within a decade, according to research commissioned by VodafoneThree.
Modeling conducted by consulting firm WPI Strategy suggests that stronger and more reliable cell phone coverage would boost entrepreneurship in underserved areas and drive long-term economic growth through 2036.
The results come as VodafoneThree announced it has removed 16,500 square kilometers of mobile “not spots” by deploying Multi Operator Core Network (MOCN) technology in more than 8,000 locations across the country. The technology allows Vodafone and Three customers to connect to the strongest signal available at no additional cost.
The upgrade is part of the company’s £11 billion investment program, which aims to achieve 99 percent population coverage with 5G standalone by 2030, rising to 99.96 percent by 2034.
An independent survey of 2,000 people, including existing and aspiring business owners, found that 62 percent of aspiring founders said unreliable mobile connectivity prevented them from starting a business in their area.
A third said better signaling would make their region more attractive to start a business, while 26 percent said it would directly increase their likelihood of starting a business locally.
The study reflects findings from the Ministry of Science, Innovation and Technology that reliable mobile connectivity boosts entrepreneurship and business performance, particularly in rural areas.
Nick Gliddon, business director at VodafoneThree, said: “As connectivity improves, entrepreneurship follows. Strong and reliable networks help start-ups attract customers, build reputations and grow steadily.”
The north west of England is predicted to be among the biggest beneficiaries. The improved coverage could support almost 6,000 new businesses and grow the regional economy by an estimated £807 million a year within ten years. Around 5,800 new businesses could emerge in the South East, contributing £784m.
Even London, often thought to be well supplied, will benefit. The study suggests that improved connectivity in the capital could enable more than 14,000 new businesses and contribute £1.9 billion to the economy. Westminster alone represents the biggest single opportunity, with additional gains predicted in boroughs such as Camden, Hackney and Islington.
Wales could see over 1,000 new businesses set up, worth £136 million a year, while Scotland could see more than 2,100 new businesses contributing £291 million.
Connectivity challenges are already influencing business decisions. Two out of five founders surveyed said they had moved to start their business, citing poor signal, limited customer base and limited access to talent.
Six in 10 business owners said they rely on mobile connectivity to run their business, while nearly nine in 10 said they experienced outages that disrupted commerce.
Tina McKenzie, policy chair of the Federation of Small Businesses, said the consistent rollout of 5G remained essential. “If we want more people to take the step into starting their own business, they need reliable connectivity to make this possible,” she said.
Telecoms Minister Liz Lloyd added that the government was working with network operators to improve coverage and support business ambitions across the country.
As digital infrastructure becomes increasingly important to modern commerce, from payments and marketing to logistics and customer service, VodafoneThree argues that closing connectivity gaps could be a crucial lever to unlock the next wave of business growth in the UK.
