According to Vodafone research, small and medium-sized businesses (SMEs) are losing up to £8.6 billion a year in productivity savings due to the slow rollout of standalone 5G.
In a new report, the telco said the UK is on track to be the fifth most attractive place in Europe for SMEs to use technology at scale, behind Denmark, Finland, Sweden and the Netherlands, but could jump to second place if it accelerated 5G deployment.
“More than 16 million people in the UK work for small and medium-sized businesses. They are the foundation of our economy. As this research shows, we must help them use technology to grow even faster,” said Kevin Hollinrake MP, Minister for Business. Company. markets and small businesses.
“That means giving people the skills to understand how to make the most of innovative technologies like AI. It also means ensuring we have world-class digital infrastructure including gigabit broadband and standalone 5G deployed throughout the UK to “That all businesses can benefit from faster speeds and a more reliable network.”
The report gives the example of small agricultural businesses, which it says could save the average worker more than three weeks of their time by using standalone 5G technologies.
Deploying 5G Standalone at high speed and accelerating the development of the technology it enables would lead to collective savings of more than 37.7 million working hours a year across the sector, Vodafone said.
In the long term, this could generate £112 million in annual productivity savings and allow SMEs to reinvest and drive business growth.
Similarly, more than two million employees in the retail sector could save more than 45.3 million working hours per year by implementing 5G standalone technologies, such as IoT stock-keeping systems. This, she said, could contribute to productivity savings of £1.85 billion a year.
Other industries that would particularly benefit include science, technology and professional services, with savings of £1.67 billion; construction, with savings of £1.28 billion; and manufacturing, with a figure of £854 million.
Strong 5G connectivity is essential for SMEs
Tina McKenzie, chair of policy and advocacy at the Federation of Small Businesses (FSB), said strong and reliable mobile connectivity is “essential for small businesses to thrive”, but many still face significant issues in this regard.
“We often hear that unreliable mobile connectivity continues to be a big obstacle for small businesses and the self-employed, and is particularly detrimental to productivity in rural areas,” he said.
“As technology develops, the need for a decent connection is even more vital. Deploying standalone 5G to all areas of the country quickly and efficiently will help small businesses stay at the forefront of technological innovation , improving the rate of work and ensuring that the UK remains a great place to start and run a business.”
According to OpenSignal, the UK ranks last among G7 countries for average 5G download speeds, while research from the Federation of Small Businesses (FSB) shows that almost half of small businesses in rural areas experience unreliable data connectivity.
“It is essential that the UK seizes the opportunity to enhance 5G networks to create a world-class environment for SMEs to grow and scale,” said Emma Jones, CEO of Enterprise Nation.
