UK govt signs deal to tackle mobile ‘not-spots’

<p>The government has signed an agreement with the four major mobile networks to tackle poor coverage across the UK.</p>

The UK government is taking on poor mobile coverage across the nation with a new landmark deal.

Culture secretary Sajid Javid has today (December 18th) unveiled a £5 billion investment programme to reduce the amount of mobile 'partial not-spots' in the UK. Teaming up with the four major mobile networks, EE, O2, Three and Vodafone, the government is aiming to significantly improve mobile connectivity in all areas of the country.

Partial not-spots are part of the UK which have coverage from some but not all four of the mobile networks. Depending on which provider a customer is on they may not be able to make calls or text and this is something the government wants to improve.

The £5 billion investment will help to significantly upgrade mobile infrastructure by 2017 while also guaranteeing voice and text coverage from each operator across 90 per cent of the British Isles in the same timeframe. Full coverage for the four operators will increase from 69 per cent to 85 per cent in the next three years.

Mr Javid added that the government wants to provide more reliable signal strength for voice calls on each type of mobile service whether it be 2G, 3G or 4G. The deal will also be legally binding and enforceable by Ofcom.

The culture secretary said: "Government and businesses have been clear about the importance of mobile connectivity, and improved coverage, so this legally binding agreement will give the UK the world-class mobile phone coverage it needs and deserves.

"The £5 billion investment from the mobile networks in the UK’s infrastructure will help drive this government’s long-term economic plan."

All four mobile operators are supportive of the government plans with EE, which is currently the subject of a potential takeover bid from BT, stating that the agreement will help to ensure its customers "stay connected in even more places up and down the country".

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.