Britain at Risk of Mobile Signal Rationing as Energy Costs Soar
Britain is at risk of mobile signal rationing as network operators warn soaring energy prices triggered by the war in Iran could force them to implement energy saving measures.
The Telegraph has more.
Telecoms giants including VodafoneThree, Virgin Media O2 and BT-owned EE have issued a stark warning to the Government over energy costs after being excluded from Rachel Reeves’s support scheme.
Some companies are understood to be drawing up contingency plans as they grapple with heightened power costs.
These include rationing access to their networks or slowing down speeds to help reduce energy use. Another option is surge pricing, which would charge customers an additional fee at peak times.
Mobile phone services such as calls and internet data could be the worst affected, although broadband could also be hit.
Bosses warned that rising energy costs could also force the companies to scale back plans to expand their 5G networks, resulting in jobs either being cut or moved offshore.
In response to the threat, a Government spokesman said mobile network operators are required by law to maintain connectivity.
Industry executives are frustrated at Labour’s decision to exclude telecoms companies from a recent support package aimed at shielding businesses from soaring energy costs.
The Chancellor unveiled plans to cut electricity bills for 10,000 manufacturers by up to 25% under the British Industrial Competitiveness Scheme (BICS) last week, though the measures will not come into effect until April 2027.
Telecoms companies believe their sector warrants support as an operator of critical national infrastructure.
One source branded it a “serious oversight”, adding that it raised questions about which parts of the economy the Government was prioritising.
Mobile networks are highly energy-intensive, consuming just under 1 terawatt-hour of electricity each year. That is the equivalent of powering 370,000 homes a year.
Operators hedge their energy costs to help weather price spikes.
However, prices have still increased by 70% in recent years as a result of Russia’s invasion of Ukraine and the outbreak of war in the Middle East, which led to the closure of the Strait of Hormuz, the crucial trade artery that transports a fifth of the world’s oil and gas supplies.
The price of electricity is mostly set by gas, which has risen by 33% since the start of the war in Iran.
Telecoms bosses argue the sector is disproportionately exposed to the crisis due to the “always on” nature of mobile networks, meaning they are unable to shift demand to cheaper, off-peak times.
Any move to ration or slow down access to mobile signals, which is understood to be a worst-case scenario, would be a major blow to Britons already frustrated by patchy coverage. The UK ranks bottom of the G7 for 5G download speeds.
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