Improved mobile connectivity could help create 49,000 new businesses across the UK and add £6.6bn a year to the economy within a decade, according to research commissioned by VodafoneThree.

The modelling, carried out by consultancy WPI Strategy, suggests that stronger and more reliable mobile coverage would unlock entrepreneurship in underserved areas, driving long-term economic growth by 2036.

The findings come as VodafoneThree announced it had removed 16,500 square kilometres of mobile “not spots” by deploying Multi Operator Core Network (MOCN) technology across more than 8,000 sites nationwide. The technology allows Vodafone and Three customers to connect to the strongest available signal at no extra cost.

The upgrade forms part of the company’s £11bn investment programme, which aims to deliver 99 per cent 5G Standalone population coverage by 2030, rising to 99.96 per cent by 2034.

An independent survey of 2,000 people, including existing and aspiring business owners, found that 62 per cent of would-be founders said unreliable mobile connectivity had prevented them from starting a business in their local area.

A third said better signal would make their area more attractive for launching a company, while 26 per cent said it would directly increase their likelihood of setting up a business locally.

The research echoes findings from the Department for Science, Innovation and Technology that dependable mobile connectivity boosts entrepreneurship and business performance, particularly in rural areas.

Nick Gliddon, business director at VodafoneThree, said: “When connectivity improves, entrepreneurship follows. Strong and reliable networks help start-ups win customers, build reputation and grow steadily.”

The North West of England is forecast to be among the biggest beneficiaries, with improved coverage potentially supporting nearly 6,000 new firms and adding an estimated £807m annually to the regional economy within 10 years. The South East could see around 5,800 new businesses, contributing £784m.

Even London, often assumed to be well served, stands to gain. The research suggests enhanced connectivity in the capital could enable more than 14,000 new businesses and contribute £1.9bn to the economy. Westminster alone represents the largest single opportunity, with additional gains projected in boroughs including Camden, Hackney and Islington.

Elsewhere, Wales could see over 1,000 new firms created, worth £136m annually, while Scotland could gain more than 2,100 businesses contributing £291m.

Connectivity challenges are already shaping business decisions. Two in five founders surveyed said they had relocated to start their company, citing poor signal, limited customer bases and restricted access to talent.

Six in 10 entrepreneurs said they rely on mobile connectivity to run their operations, while nearly nine in 10 reported having experienced outages that disrupted trading.

Tina McKenzie, policy chair at the Federation of Small Businesses, said consistent 5G rollout remained essential. “If we want more people to take the leap into starting their own business, they need reliable connectivity to make it possible,” she said.

Telecoms minister Liz Lloyd added that the government was working with network operators to improve coverage and support enterprise ambitions across the country.

With digital infrastructure increasingly central to modern commerce, from payments and marketing to logistics and customer service, VodafoneThree argues that closing connectivity gaps could be a critical lever for unlocking the UK’s next wave of entrepreneurial growth.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Advertisement