Guidance

Communications industry in the UK: investment opportunities

Published 20 February 2014

This guidance was withdrawn on 11 July 2019

This page has been withdrawn as it is out of date. For up-to-date information please go to https://www.great.gov.uk/international/content/industries/technology/

1. Overview

The UK communications sector has about 8,000 companies who employ over 270,000 people. There are opportunities for investment in 2 main areas where there is high growth. These are:

• mobile
• internet

Big communications projects in the UK are currently focused on infrastructure - the introduction of fibre-optic home broadband and the roll out of 4G and Long Term Evolution (LTE) mobile data communications.

2. Mobile device market

The UK’s mobile market is the largest in Europe with a value of £14 billion annually and 80 million mobile subscribers. This means companies are always looking at new opportunities to use mobile technology.

2.1 Mobile payments

The UK has the biggest mobile payment market in Europe as more consumers are using new non-cash payment methods when shopping.

Mobile payments are also used in financial services such as mobile wallets, mobile banking and mobile money transfers making personal banking easier to access for customers.

As it’s popularity grows, new opportunities for companies are developing in:

• creating secure networks
• new software development
• developing devices

By 2015 the value of transactions made through mobile devices could be €81.9 billion. This is due to Near Field Communication (NFC) applications, which is where smartphone mobile devices establish radio communication when they’re in contact, or close to each other.

3. Next generation network opportunities

The UK wants to introduce the biggest broadband network in Europe by 2015. It’s a priority for the UK Government to improve the country’s broadband infrastructure.

£530 million is allocated for introducing superfast broadband across the UK as part of the strategy on the future of Britain’s superfast broadband.

Different technologies will be needed for the upgraded infrastructure covering fibre, existing copper, mobile and wireless.

Superfast broadband will help Small Medium Enterprises (SMEs) grow and encourage businesses to look at e-commerce.

4. 4G and Long Term Evolution (LTE)

The move to digital TV in the UK means the 800 Megahertz (Mhz) spectrum is free to use for future mobile broadband services. This spectrum was sold in 2013 and 4G services are being introduced across the country with internet speeds up to 150 Mega bits per second (Mbps) downstream.

5. Network security

Secure networks are important for the security of the UK and other countries. The UK is a leader in providing secure communications and offers companies opportunities in a number of areas including in cyber security.

The UK cyber security market is worth about £2.8 billion. The growth is due to increased awareness of cyber threats and the development of more connected services. Mobile phone security is expected to be one of the largest markets over the next few years as more people start using their mobile devices for mobile commerce.

6. Cloud computing

Cloud computing is a growing market that will help the UK’s economy in the future. Sending data and delivering services securely and efficiently at low cost means big opportunities for businesses working on smart communication technologies.

As more devices become connected to the Cloud, manufacturers of new devices will need to work with Cloud providers to ensure customers can connect to these types of services.

Key developments in the UK include the G-Cloud Programme. This is changing how the public sector buys and uses Information Technology (IT) meaning more opportunities for companies to be able to access government contracts.

7. Companies in the UK

The UK is the ideal location for many companies in the communications industry. They include:

• Alcatel-Lucent
• BT
• Huawei
• MediaTek
• Qualcomm
• Siemens
• Vodafone Group

8. Skills in the industry

The UK produces 46,000 engineering graduates each year. About 25,000 students are studying for degrees in subjects ranging from multimedia computer science to microwave engineering. There’s also a highly skilled workforce within UK companies.

9. Business networks and associations

9.1 Cambridge Wireless

Cambridge Wireless brings together over 300 companies that are experts in wireless technologies and networks. Members include Nokia, Motorola, Google Mobile, Vodafone and Fujitsu.

9.2 ICT Knowledge Transfer Network (KTN)

The ICT KTN encourages closer working and sharing of knowledge between its members in the information and communication industries. It works with a number of partner networks, including Cambridge Wireless and Silicon South West.

9.3 techUK

techUK is a leading trade association that represents about 800 members consisting of SMEs and multinationals operating in the UK technology industry.

9.4 Mobile Data Association (MDA)

The MDA is a not-for-profit industry association representing all mobile data-centric businesses.

10. Locations

There are different locations across the UK known as Enterprise Zones that offer investors incentives to locate themselves there including:

• reduced taxes
• simpler planning rules
• financial benefits

Many Enterprise Zones have employment clusters, where businesses from the same sector are located in the same zones.

More information about the Enterprise Zones across England, Wales and Scotland.

11. Contact the Department for International Trade (DIT) for help

DIT can provide overseas companies and investors with more information about opportunities in the UK’s communications sector.

Enquiries for overseas companies looking to set up in the UK

Email enquiries@ukti-invest.com

Contact form https://www.contactus....

Telephone: +44 (0)207 000 9012

Overseas companies can contact the Investment Services Team for information about setting up in the UK including the help that is available.