The UK stands at a pivotal moment in its economic and technological trajectory. As the government refines its Industrial Strategy, it must fully recognise full-fibre broadband as a fundamental enabler of economic growth and innovation. Without prioritising digital infrastructure, the nation risks falling behind its global competitors in productivity, technological advancement, and digital inclusion.
Full-fibre broadband is the backbone of the modern economy, much like railways were during the Industrial Revolution. It provides the speed, reliability, and capacity necessary to drive growth across all sectors. From AI-driven automation to cloud-based business operations, from digital healthcare to smart manufacturing, full-fibre connectivity underpins the UK’s ability to compete in a global economy. Yet, despite its significance, the Industrial Strategy fails to explicitly recognise the role of full-fibre broadband, treating digital connectivity as a secondary concern rather than a primary driver of growth.
The government’s commitment to expanding full-fibre coverage is commendable, but coverage alone is not enough. Adoption must be a priority. Currently, a significant gap exists between the number of premises passed by full-fibre networks and the number of premises connected. Businesses and consumers alike need incentives and support to transition from outdated copper networks. A national campaign to promote full-fibre adoption, including financial incentives for businesses, is essential to ensuring that the benefits of digital infrastructure investments are fully realised.
Investment in full-fibre broadband is not just a technological upgrade—it is an economic imperative. According to the Department for Science, Innovation and Technology, the UK telecommunications sector contributed approximately £35 billion in GVA in 2023, marking a 5.7% real-term increase from the previous year. The role of independent network providers (Altnets) in this growth has been crucial. Our industry has attracted billions in private investment, accelerating full-fibre deployment and enhancing competition in the telecoms market. Without this competition, the UK would still be lagging in full-fibre adoption, constrained by high prices and limited availability.
Infrastructure competition must remain at the heart of the government’s broadband policy. The expansion of full-fibre networks to 74.69% of UK premises has been driven by competitive market forces. The Industrial Strategy should reinforce the importance of infrastructure competition by ensuring that Ofcom is explicitly required to promote it. Without a firm regulatory commitment to competition, investment in digital infrastructure may stagnate, leading to slower deployment and reduced consumer choice.
Government intervention should also focus on reducing barriers to full-fibre rollout. Deployment is often hampered by bureaucratic delays, local authority inconsistencies, and regulatory red tape. The establishment of a cross-departmental digital infrastructure working group would ensure better coordination across government, streamlining processes and accelerating network expansion. Digital connectivity is not solely the concern of the Department for Science, Innovation and Technology; it is a national priority that intersects with housing, business, education, healthcare, and regional development. The Industrial Strategy must reflect this by embedding digital infrastructure as a cross-government initiative.
Beyond economic growth and competition, full-fibre broadband is essential for digital inclusion. The UK’s last digital inclusion strategy was published in 2014—before the widespread adoption of remote working, online education, and digital healthcare. Today, digital access is a fundamental necessity, not a luxury. Without affordable and widespread full-fibre broadband, many communities will remain on the wrong side of the digital divide, limiting their economic opportunities and social mobility. The government must develop a new, comprehensive digital inclusion strategy to address affordability, skills training, and equitable access.
In conclusion, the UK’s Industrial Strategy must explicitly prioritise full-fibre broadband as a critical enabler of economic growth. The government should lead a national campaign to drive full-fibre adoption, provide financial incentives for businesses transitioning from copper networks, reinforce its commitment to infrastructure competition, and establish a cross-departmental approach to digital connectivity. The future of the UK economy depends on its ability to leverage digital infrastructure for innovation, productivity, and resilience. The new government has been vocal about its plans to kickstart economic growth. Now is the time for decisive action.
By Paddy Paddison, Chief Executive, Independent Networks Cooperative Association (INCA)
