London could lose out on £1.9 billion in new businesses because of spotty mobile coverage
Despite being a global hub for startups and innovation, London faces surprising pockets of unreliable mobile signal that are stifling entrepreneurial activity, according to new research commissioned by VodafoneThree.
The study estimates that improved mobile connectivity across the UK could unlock the creation of 49,000 new businesses by 2036, delivering an annual £6.6 billion boost to the national economy after a decade.
In London specifically, better coverage could enable 14,431 new businesses and contribute £1.9 billion in economic value, highlighting the capital’s untapped potential if connectivity barriers are removed, the group said.
The research draws from a survey of 2,000 UK residents, including existing and aspiring business owners, which revealed stark insights into how poor signal hampers entrepreneurship.
Business founders relying on mobile signal
Nearly two-thirds (62%) of would-be founders said unreliable connectivity had prevented them from starting a business locally. A third (33%) believed better signal would make their area more attractive for launching a venture, while 26% said it would directly increase their likelihood of setting up shop nearby.
Even in urban centers like London, these issues persist. The modeling showed particular opportunities in boroughs such as Westminster (with the largest potential upside), Camden (£136 million in projected GVA), Hackney (£93 million), Barnet (£92 million), the City of London (£87 million), and Islington (£84 million).
About 22% of prospective London founders indicated they would start a business if mobile signal improved.
The study shows entrepreneurs increasingly depend on mobile connectivity for core operations. Six in ten rely on it for tasks like payments and billing (50%), online marketing and social media (43%), customer communications (39%), and e-commerce (36%).
Nearly nine in ten founders have faced disruptions from connectivity problems, which can halt trading and risk revenue. Two in five have even relocated their businesses due in part to poor signal.
Room for improvement
The findings come amid VodafoneThree’s major push to address these gaps. The company has deployed Multi Operator Core Network (MOCN) technology across more than 8,000 sites, eliminating 16,500 km² of ‘not spots’ (areas with little or no coverage) and allowing Vodafone and Three customers to access the best available signal at no extra cost.
This forms part of an £11 billion investment program aiming for 99% 5G Standalone coverage by 2030 and 99.96% by 2034, the group said.
“Mobile connectivity is essential for helping businesses to work efficiently and stay competitive,” said Tina McKenzie, Policy Chair at the Federation of Small Businesses.
“If we want more people to take the leap into starting their own business, they need reliable connectivity to make it possible. Currently, the 5G rollout has been uneven, particularly in rural areas and connectivity no-zones, including city centres.”
