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ExplainerUC&C22 Feb 2018 · 3 min read

The Changing Landscape of UK Communications with SSE Enterprise Telecoms

SSE Enterprise Telecoms Managing Director, Colin Sempill, explains how the UK Telecoms market is shaping up in 2018.

With such rapid change taking place in the UK Communications market, suppliers are having to adjust their focus within the industry to remain relevant. We spoke to Colin Sempill, Managing Director of SSE Enterprise Telecoms, on the changes they are expecting and how suppliers and Government will need to adjust.

During 2017 uncertainty within the UK Connectivity landscape, caused by the successful challenge to Ofcom's Dark Fibre Proposal, jeopardised progress. Enterprising organisations saw this as an opportunity rather than a stumbling block. We reported last year that SSE were considering other more creative options to deliver connectivity. That requirement for innovative thinking from providers is set to continue in 2018.

A huge development within UK connectivity will be the inception of the 5G network. The expectation usually would be that the UK Government strategy would employee the traditional large players to conduct the vast majority of the background work required to enable 5G. Colin explained to us why that won't be the case.

"The investment required to enable 5G is far too great for individual operators to shoulder alone, this will result in the market seeing alternative infrastructure aggregators emerge to help bear the brunt"

"2018 will be a potentially pivotal year for developing a future-focused spectrum policy to help ensure that spectrum is allocated in a way that supports the Government's mobile ambitions to be a world leader. The Government wants Ofcom to complete the licensing of spectrum bands as soon as possible. SSE Enterprise Telecoms sees a possibility that the government may licence spectrum in a way that enables pure-play service providers to take a stake beyond traditional operators."

Commentators and industry experts have called for increased competition within the UK Connectivity market for a long time and it appears that environment may finally be on the horizon.

"The UK government has also alluded to the need to continue to create conditions that encourage investment in the UK’s digital infrastructure and spoken of its aim of encouraging the market towards ubiquitous ultrafast services. But the government must also recognise the need to invest in building out networks in a way that is more attractive to alternative providers other than national incumbents."

New demands, such as 5G, within the industry may well mean that the current status quo is not sustainable or optimal to enable development within the UK. This appears to be good news for suppliers such as SSE. As well as managing the implementation of a 5G network the UK Government must also consider alternative options to achieve ambitious targets for improving rural broadband connections.

"The government has been vocal about its goals. But we feel this must be supported by continued investment in creating new networks to back up these aspirations. The one constant is that new networks are a necessity in 2018 if we are to meet the demand for new connectivity for now and later.”

With the demand for networking increasing alongside a public and commercial requirement for improved connectivity, 2018 is promising to be a vital year in shaping the UK's technological future for years to come.

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