Wednesday, 08 April 2020

UK telecoms industry profiting from its EU investments since Brexit referendum

by Harry Baldock, Total Telecom
Monday 17 February 20

A recent study shows that the UK telecoms industry’s European earnings have grown 40% since the 2016 referendum

Since the idea of Brexit was first floated to the public, there has been much debate as to its economic impact on all sectors of the UK economy. Expert forecasts of ‘doom and gloom’ have been written off by politicians and pubgoers alike as ‘scaremongering’, but what has been the reality for the UK telecoms industry so far?  …

Since the idea of Brexit was first floated to the public, there has been much debate as to its economic impact on all sectors of the UK economy. Expert forecasts of ‘doom and gloom’ have been written off by politicians and pubgoers alike as ‘scaremongering’, but what has been the reality for the UK telecoms industry so far?
 
Analysis performed by Catax on UK Office of National Statistics (ONS) data has shown that the UK’s telecoms industry has earned 40% more from its European investment than it did prior to the referendum.
 
The industry earned £1.8 billion from EU investments in 2015, which since has increased to £2.5 billion in 2018. It should be noted, however, that this figure is down when compared to the 2017 figure, which reached a peak of £3.5 billion. 
 
The analysis itself seems to celebrate this finding as evidence that Brexit will not be as harmful as predicted.
 
“For the past few years we’ve heard horror stories about what would happen to the UK following the vote to leave the EU,” says Catax chief executive, Mark Tighe. “Against many people’s expectations, the telecoms industry has taken the opportunity to actually grow its investment positions on the continent.”
 
However, the boost could indicate that Europe is simply a more profitable market for UK telecoms businesses, and that the UK industry has simply made wise European investments in the wake of Brexit uncertainty.
 
Brexit itself has yet to happen, so the true weight of industry disruption will not be felt until 2021. 
 
For customers, the main disruption will be roaming charges, which the government has recently indicated that it will reintroduce in 2021. However, the four major operators have mercifully suggested that they have no plans to charge their customers roaming fees, at least for now. 
 
 
To discuss the implications of Brexit with the UK telecoms industry at large, visit Connected Britain 2020
 
 
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