UK telcos fear government U-turn on SRN fundingUK telcos fear government U-turn on SRN funding

Government officials are holding talks with the telcos over the second phase of the SRN, the scheme designed to improve mobile coverage in difficult to reach areas, and it appears a budget cut could be on the table.

So claims the Telegraph, which has learned that the state is planning to reduce the number of mobile masts built under phase two in order to save an unspecified sum of money. The paper claims that officials are looking to build just 60 masts under phase two, having previously planned for 260.

There was no formal denial from the government. If anything, the comment its spokesperson provided to the paper suggests its claims are accurate.

"It is wrong to suggest there will be any let up in our determination to upgrade connectivity for our rural communities," the spokesperson said.

"Mobile network operators have previously said they can deliver the objectives of the Shared Rural Network with far fewer new masts, benefiting communities and reducing the impact on landscapes. We continue to work with operators on the details," he or she added.

It goes without saying that determination and investment are not remotely the same thing. And there's a strong hint there that we are looking at fewer masts and the state letting the operators pay for them.

The report comes just days after the government trumpeted the switch-on of the 30th mast it has funded under a part of the SRN designed to open up masts built by EE as part of the UK's Emergency Services Network (ESN) to all of the UK's operators. That gives customers served by those masts a choice of provider.

That's not great timing for the state. But the suggestion that it is looking to renege on its investment commitment can come as no surprise, given that the mobile operators – eventually – met or exceeded their targets in phase one of the SRN.

Phase one drew to a close last year; Ofcom signed off on it in September. Now the stakeholders are in talks over the second phase and, according to the paper, the operators are angry not because the government is looking to withdraw funding for masts, but because they want the cash diverted to other areas of the country where coverage is lacking.

Specifically, they want the government to spend the money on improving coverage on the UK rail network. They fear that this is merely a cost-cutting exercise on the part of the government and that any reduction in spending would not mean re-investment elsewhere.

They could well be right, particularly in light of the state's comment above.

The SRN was inked in March 2020 with the goal of providing 4G coverage to 95% of the UK. It is a £1 billion-plus programme, with the operators providing investment of £532 million and the state £501 million.

It is starting to look like the state will not get close to providing the full amount. But should that actually turn out to be the case, it will surely find a creative way of explaining away the investment shortfall.