4G's so last year: why we need 5G, and now

We have a spectrum crunch on our hands, and technology is only just starting to deal with that.

By current trends, data traffic is expected to increase 1,000 fold by 2020, by which time there will be an estimated at least 50 billion Internet-capable devices. Our ever-growing love for mobile comms is a fast lane to "spectrum crunch" – we're just running out of radio space.

The electromagnetic spectrum of radiowaves is another of our finite resources, shared out between a hungry media still expanding its TV and radio platforms, all the mobile web-enabled devices, emergency services and the military. With such scarcity, Government control is needed to allocate elements of the spectrum. Of course, that also pretends an opportunity to make large sums from the private sector (£22.5bn from the 3G auction when the industry was at a peak of optimism in 2000, and still a further £3.5bn expected, and budgeted into the autumn statement, from the imminent 4G auction).

Spectrum crunch will basically mean a shortage of supply, leading to a widening gap between the technology "haves" and "have nots", smaller markets for businesses and restrictions on the development of wireless-enabled technologies, products and services. Instead of the great opening up of the web, mass participation and new commercial opportunities, we'll see a closing down.

This is why 5G is so important, even before 4G has taken off. Unlike its predecessors, 5G technology isn't about improving speed of data rates, it's about sustainability and making a global digital life a possibility. 5G is needed urgently as a new basis of an efficient, space-saving approach to the spectrum. It will also be the technology that helps minimise the energy requirements of web devices and network infrastructure – another issue as everyday life becomes increasingly mobile and digital.

Although the UK played an active role in the creation of 2G (GSM) cellular standards, we have increasingly fallen behind in the succeeding generations of 3G and 4G standards. 5G is a huge opportunity for the UK to regain a world leading position and to be at the heart of new business creation and product development around the technologies with rich applications. It's already starting to happen. The University of Surrey has been given the go-ahead to set up a 5G Innovation Centre, backed up by a total of £35m investment from a combination of the UK Research Partnership Investment Fund and a consortium of key mobile operators and infrastructure providers including Huawei, Samsung, Telefonica Europe, Fujitsu Laboratories Europe, Rohde & Schwarz and AIRCOM International.

So the 5G Innovation Centre will be a hub for the latest research and technologies, capable of attracting telecoms giants internationally to carry out their own R&D and the basis of a cluster for the involvement of all kinds of businesses from different sectors interested in getting a lead from taking advantage of 5G platforms: media firms, gaming, health, logistics etc. The Centre will live within a 5G testing environment (operating throughout the University campus and also into Guildford in order to offer a model of the different types of urban and non-urban spaces) for firms to try out new offerings on the latest network.

What matters now is that UK organisations are long-sighted enough to seize the opportunity and get involved. The major investment funds mean we have a window in which to set the pace for what may well be the the make or break phase in the history of mobile communications. We have a long history in the UK of quality research that doesn't lead to commercialisation by home firms but picked up overseas. And with every economy now looking for the next big thing, the new technologies and markets that will shore up deficits and be an engine of long-term growth, 5G has the potential to be a precious commodity of the coming years.

Mobile phone masts. Photograph: Getty Images

Professor Rahim Tafazolli is the Director of the Centre for Communications Systems Research at the University of Surrey

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.