Chancellor Rachel Reeves left the telecoms sector out of the British Industrial Competitiveness Scheme (BICS) tax-relief scheme, which gives a 25% discount on electricity bills to 10,000 businesses. Telecoms giants including VodafoneThree, Virgin Media O2, and EE have been excluded from this support. The price of electricity has risen by 33% since the war in Iran began and could continue to rise, driving telecoms firms to face the full force of energy price rises.
As a result, these firms are drawing up emergency contingency plans to manage their energy bills. Measures being considered include slowing speeds, restricting access during high demand, and charging premiums for peak-time usage, with most rationing targeting voice calls and mobile data usage. Operators may also consider offshoring call centers to offset energy costs.
Cost pressures could lead to 5G rollout plans being shelved, and one network warned that 9,000 jobs could be at risk if investment plans slow due to rising costs. The BICS scheme will cut costs by up to £40 per megawatt-hour from 2027 by exempting businesses from certain extra charges, with an additional one-off payment in 2027 given to an extra 3,000 businesses in sectors like automotive, aerospace, steel, and pharmaceuticals. Industry insiders warned that mobile networks are officially classed as critical infrastructure and should be included in the BICS scheme.
A VodafoneThree spokesperson said, according to the company, that they are disappointed the government has chosen not to include the telecoms sector and urged consideration of the impact on the vital sector. A Virgin Media O2 spokesperson added, according to the company, that if the government wants growth, productivity and resilience, it cannot overlook the digital networks the country depends on. It remains unclear which specific telecoms firms are implementing data rationing and price hikes, and when these measures will take effect, nor how many jobs are at risk across the entire industry.