Telecoms firms are drawing up emergency contingency plans as rising energy prices threaten network operations, according to industry sources. Providers are considering rationing network access, slowing speeds, or imposing price hikes, with mobile phone calls and internet data expected to be the worst affected. Broadband could also be affected as operators seek to cut energy use, according to a single source.
The Government reminded mobile network providers of their legal obligations to maintain network availability, a government spokesperson said. However, it remains unclear what specific measures the government will take to enforce these obligations or whether it will reconsider including telecoms in support schemes.
The closure of the Strait of Hormuz has driven electricity prices up by 33% since the war began on February 28, according to a single report. The price of electricity has risen by 33% since the war began and could continue to rise, further straining telecoms operators, according to the same report.
Chancellor Rachel Reeves left the telecoms sector out of the British Industrial Competitiveness Scheme (BICS), according to a single report. Telecoms giants including VodafoneThree, Virgin Media O2 and EE have been left out of the scheme despite consuming under one terawatt-hour of electricity each year, according to a single source.
The BICS scheme will cut electricity costs by up to £40 per megawatt-hour from 2027 for eligible businesses, according to multiple reports. An extra one-off payment in 2027 will be given to an extra 3,000 businesses, including automotive, aerospace, steel, and pharmaceutical sectors. The scheme acts as a taxpayer-funded lifeline giving a 25% discount on electricity bills to 10,000 businesses, according to a single report.
The exclusion of telecoms from BICS could have significant consequences. Operators may consider offshoring call centres to offset energy costs, according to a single source. 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 are slowed by rising costs. The exact impact on consumer prices, speeds, and network investment remains uncertain.