4G to offer an economic boost

4G to offer an economic boost

The rollout of 4G networks from both O2 and Vodafone means that the level of competition among the networks to provide both conusmers and businesses with super-fast mobile speeds has now stepped up.

The market had previously been monopolised by EE, but those days appear to have come to an end, much to the relief of those who wanted a degree of choice.

But choice is not the only benefit that has come out of expanding the market, as there are a number of economic benefits that look set to impact the UK

A recent study from macroeconomic research company Capital Economic has claimed that the wider introduction of 4G has the potential to add as much as 0.5 per cent to the UK's gross domestic product (GDP), which is the equivalent of around £7.5 billion per annum.

Setting up and maintaining these networks will create or safeguard 125,000 jobs, while there is also set to be around £5.5 billion of money pumped directly into the UK economy by the year 2015 in the form of private investments.

These funds will come on top of the revenue from government spectrum auctions.

And by the end of the decade, an expected 10 million people with no access to fixed superfast broadband will be able to surf the net by using 4G.

This will be made possible by the fact that 4G mobile networks will be far more capable of delivering faster and more reliable mobile internet connections.

The report’s author, Mark Pragnell of Capital Economics said: "The introduction of 4G mobile broadband will create substantial long-term benefits for the economy and consumers, ultimately boosting UK GDP by as much as half a percentage point. The near-term £5.5 billion private industry investment we project is substantial – and opportune for the wider economy given the recent investment slump."