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Monday 10 March 2025 8:58 am

Government unveils £23m boost for telecoms

By: Saskia Koopman

Tech Reporter

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The UK now ranks 30th out of 39 countries for 5G availability and 37th for quality
Ofcom has estimated eligible households could save up to £220 a year

The UK government has announced a £23m investment in telecoms research and development, aiming to strengthen connectivity across key industries like AI, cloud computing, and agriculture.

The funding forms part of science and technology secretary Peter Kyle’s plans to accelerate the deployment of next generation telecoms technologies.

He is expected to confirm the funding during his speech at the TechUK tech policy conference later today.

Speaking ahead of the announcement, Kyle emphasised the importance of investing in advanced telecoms.

“The UK has deep pedigree and expertise when it comes to developing, commercialising, and rolling out the most advanced telecoms tech.”

“Today, it is all the more important that we back our telecoms innovators to get their ideas out of the lab and into use, in every part of the country.”

The funding has been allocated across two key areas.

A total of £7m will support local projects that integrate 5G into businesses and public services.

These initiatives aim to improve efficiency and public safety through enhanced connectivity.

The remaining £15m will go towards research to meet the increasing demand of data-intensive industries such as AI and cloud computing.

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This investment is part of a broader effort to strengthen Britain’s digital infrastructure and ensure that it can support emerging technologies.

“None of our ambitions for national renewal will be possible without a backbone of telecoms tech that can meet the needs of burgeoning new industries like AI and data centres, and turbocharge existing enterprises too”.

Much of the funding will be directed towards three future communications research hubs, which will focus on developing next generation tech.

The university of Oxford, Cambridge, Bristol and Imperial College will lead various different projects.

Dr Kedar Pandya, executive director of strategy at UKRI’s engineering and physical sciences research council, emphasised the role of telecoms in supporting future tech advancements.

“Transformative technologies, such as AI and quantum, will accelerate many aspects of our lives”, he said.

“But to maximise their benefits, we must ensure our communications systems are able to connect efficiently, safely, and securely.”

The government have indicated that this initial round of funding is part of a larger strategy to build secure and resilient telecoms infrastructure.

Further announcements regarding additional investment in the UK’s future telecoms ecosystem are expected in the coming months.

The funding also aligns with the UK’s wider plan for change, which seeks to drive economic growth through tech and innovation.

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