How UK SMEs can prepare for 5G deployment

With many UK businesses prioritise digitalisationStrong network connections are becoming a key driver of national economies. That’s why the UK government is investing £40 million in Expand 5G coverage to all densely populated areas in the country by 2030.

Reliable network connectivity is undoubtedly of utmost importance to small and medium-sized businesses. Since SMBs have lower profit margins, every minute of downtime can result in significant revenue loss, potentially jeopardizing their profitability.

SMEs make up 99.9% of the UK private sector. More than 5.6 million in operationwho have been under pressure from rising interest rates, energy costs and wages amid the pandemic and energy crisis. A study released by PayPal in May 2024 showed 64% of SMEs have not expanded in the past three years.

Faster, more stable and more secure 5G connections could provide a lifeline to small and medium-sized enterprises, for example, by enabling them to use IoT technologies to increase productivity and reduce waste. It could also improve communication between remote employees and increase the reliability of payment systems, ultimately bringing opportunities for expansion.

TechRepublic spoke to UK telecom experts to find out how SMEs can continue to thrive in the transition period between the 3G switch-off and the 5G rollout, and ensure they make the most of the new connectivity.

How can UK SMEs prepare for 5G?

Create a technology roadmap

Claire Harris, head of SME business at Vodafone UK, said having a “technology roadmap” in place could help SMEs make the most of 5G as coverage expands to their area.

“Spend some time with digital partners to look at how 5G can help you overcome some of your business challenges, like better communicating with your customers,” she told TechRepublic. “Review your current business operations and how they may need to adapt to 5G technology.”

“It’s worth having a clear annual plan with specific milestones for when you want to upgrade to 5G technology to help achieve your digital ambitions.”

Ensuring infrastructure is 5G-compatible

Chris Sims, general manager of SMEs at BT Group, added that part of this planning should include checking that existing infrastructure is compatible with 5G. “5G is ten times faster than 4G, but may not be compatible with older devices, so it’s important to ensure that a business’s critical infrastructure, such as mobile phones or tablets, is ‘5G ready,'” he told TechRepublic in an email.

“If you’ve already invested in 5G equipment but your business is located in an area not yet covered by 5G, don’t worry – your equipment will still operate on 4G and will automatically switch to the new system once coverage is expanded.”

Review of how 5G affects customers

It’s important to remember that customers will also be impacted by the rollout of 5G. Customers will want to take advantage of connectivity when they can, so their digital devices will need to be 5G-enabled.

“If SMBs sell products that require connectivity, they may need to replace or upgrade older products to be able to connect to 5G services rather than traditional 3G or Wi-Fi,” Sam Jackman, chief development officer at mobile connectivity operator Shared Access, told TechRepublic in an email.

If SMEs are considering modifying their services to rely on 5G, they must inform customers in advance. “They must be clear whether there will be any cost impacts from the new 5G services so they can communicate this information before customers receive an increased bill,” Jackman said.

Review contracts with network operators and other services

“While all mobile network operators say they offer 5G, some may offer faster or better coverage than others,” Jackman told TechRepublic.

Harris added: “It’s important to make sure your mobile data plan covers all the usage you will need.”

If 5G is not yet available in the area where the SME is located, they may consider temporarily switching to the fastest operator or one that offers them better 4G coverage. Jackman added: “It is quite possible that existing contracts could be changed to rely on other services provided by the same mobile network operator.”

“Services like RootMetrics publish data on which MNOs have the best speeds and coverage across the country.”

Additionally, Jackman said it’s important to consider whether any services the SMB uses, such as phone or payment systems, are not 5G-enabled. “Make sure any service contracts the SMB uses include 5G terms, otherwise the SMB will not be entitled to the benefits of 5G services,” he told TechRepublic.

Consider private 5G networks

If 5G services are not available in the local area for a long time or 5G connectivity is insufficient, small and medium-sized enterprises can consider building private 5G networks.

“(Private 5G networks) will require local agreement with the regulator, Ofcom, to deploy dedicated, localised portions of spectrum bands for specific use cases,” Jackman told TechRepublic. “This will remove the threat of zero coverage, zero capacity scenarios.”

look: Nestlé deploys first private 5G network in Latin America with Ericsson

Richard Foggie, knowledge transfer manager for digital economy and IoT at Innovate UK Business Connect, said private 5G networks would often be built in “estate” locations such as ports, logistics centres, stadiums, transport hubs and campuses, and could be used for a range of different purposes.

“Standalone 5G allows you to use all the capabilities of 5G networks, such as slicing or multi-access edge computing, to fine-tune the data architecture to your operations,” he told TechRepublic. “Check to see if your commercial property or campus has an ‘anchor tenant’, or consider becoming one.”

When will 5G be rolled out nationwide?

In April 2023, the government announced its target Expand 5G coverage to all densely populated areas of the UK by 2030 Vodafone has committed to providing 95% of the population has 5G Eliminate the “digital divide” between urban and rural areas by 2030.

look: 4G unlikely to cover 95% of UK by end of 2025

In 2019, the first commercial 5G networks went live in London, Edinburgh, Belfast, Cardiff, Birmingham and Manchester. Since then, more “non-standalone” networks using traditional 4G equipment have been built across the country. The UK did not launch the faster and more secure “standalone” 5G infrastructure until 2019. Vodafone and Virgin Media O2 So far.

Ofcom estimates that by 2023, Between 85% and 93% Houses in the UK have outdoor 5G service from at least one operator.

Why is 5G so important to SMEs?

2G and 3G networks are shutting down

5G availability should be a priority for SMEs for a number of reasons, including the fact that alternative 3G and 2G networks are being shut down.

All major operators have confirmed to the government that they will 3G will be phased out in 2033. Vodafone and British Telecom (EE) has phased out 3G, and three and oxygen The plan is to achieve this by the end of this year and 2025, respectively. The 3G shutdown is intended to free up bands of radio spectrum so that they can be re-used for faster, more reliable 4G and 5G networks. These services are also more energy-efficient, which will help reduce operating costs and power consumption.

This will provide a boost to the national 5G and 4G LaunchData from telecoms regulator Ofcom shows that by the end of 2023, there will still be about 10 million wireless subscribers left. 2.4 million devices rely on 2G or 3G networksAlthough 3G only accounts for 3% of network data traffic.

5G will improve production efficiency

Vodafone research finds UK SMEs are missing out Productivity savings of up to £8.6 billion per year They are unable to scale up their business due to the government’s slow rollout of standalone 5G, citing a lack of “connectivity and digital competitiveness” that comes with reliable 5G.

5G will improve business productivity in a number of ways, including:

• Real-time data monitoring using IoT devices and sensors optimized for 5G networks. Such equipment enables predictive maintenance, which can prevent downtime, improve efficiency by providing visibility into production schedules, and reduce wasted time and materials.
• Provide faster communications for remote workers. For a distributed workforce that communicates via email, instant messaging, and video calls, 5G can be a reliable alternative to broadband, reducing distractions.
• Reliable payment systems and other services that require constant connectivity. 5G offers a powerful alternative connectivity model, reducing revenue losses due to downtime.

Rural and remote businesses desperately need connectivity

Research published by Vodafone in November 2023 found 46% of poor rural areas have no 5G coverageIn poor urban areas, the figure is 2.7%. In addition, a report by the Federation of Small Businesses shows 47% of rural small businesses face unreliable data connections.Therefore, remote SMEs will benefit greatly from 5G networks.

The expansion of 5G into rural areas could mean more businesses can use IoT devices for agricultural work, such as soil, weather and equipment monitoring. Vodafone said the average farm worker could save the equivalent of $100,000 in agricultural costs. Using 5G technology saved more than three weeksthe industry could save £112 million per year through increased productivity.