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Forecast: 5G SA on road, rail to unlock £3bn for UK economy

September 27, 2024

Modelling for Vodafone UK has forecasts how nationwide 5G Standalone (SA) will transform road and rail journeys – adding £1 billion (€1.2bn) to the UK economy per year through improved connectivity for remote workers on trains, while also saving regular road users £2 billion on fuel each year.  

The modelling, by WPI Strategy, used survey data on working and connectivity patterns on trains to estimate that there could be up to 28.2 million train journeys every year in the UK where people want to work, but don’t due to poor connectivity. They estimate that these journeys could be transformed into £1 billion in extra productivity for the UK economy. It also revealed train users would save 26 million hours through reduced delays.

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Ensuring consistent mobile reception on UK railways is difficult. The role 5G SA can play in helping reduce train delays amounts to a £10 million saving in delay compensation that could be reinvested into critical infrastructure. Meanwhile, reduced congestion and journey delays for freight drivers thanks to 5G-connected devices on the UK’s roads would equate to productivity savings of £140 million per year for businesses in the sector by reducing traffic, making journeys smarter, and deliveries more time efficient. 
Alongside the modelling, a poll of 2,000 UK adults revealed that 60 per cent say poor mobile connectivity on trains stops people using journeys productively – whether to work, catch up with friends or watch a film. The transformative effect of 5G SA could make 660 million train journeys more enjoyable for users by addressing these issues. 

Nearly two-thirds of travellers surveyed think the UK is the world’s best at ‘going nowhere fast’ and almost three-quarters (73 per cent) are frustrated the UK can’t replicate the reliable, cheaper services often seen abroad.

Andrea Donà, Chief Network Officer, Vodafone UK, said: “The national rollout of a 5G Standalone network has the potential to transform connectivity on the UK’s roads and railways. Across road and rail alone, it could unlock £3 billion a year for the UK through boosted productivity and by saving fuel costs through smoother journeys. Without the proposed merger between Vodafone UK and Three UK, the UK misses out on an £11 bilion self-funded infrastructure investment to deliver 5G Standalone to 95 per cent of the population by 2030 and 99 per cent of the UK population by 2034.”

The survey also found that addressing connectivity issues could encourage people to use public transport – over half (51 per cent) wish they could use public transport more frequently, but cited delays as an issue. On average, commuters say they are losing two hours and 20 minutes per month due to train service disruptions, whilst 51 per cent avoid trains altogether due to marginal time saved travelling by car.

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