Major UK telecoms operators warned they could restrict access to mobile calls and data services if they are excluded from government energy support. The industry says if electricity cost burdens keep rising, it could lead to network speed limits and even cuts to 5G investment.

On April 27, local time, IT outlet PhoneArena reported that major UK telecoms operators such as VodafoneThree, Virgin Media O2 and BT unit EE expressed concern after the mobile sector was excluded from the government's industrial electricity bill support policy.

The core issue is surging electricity prices. The UK government plans to launch a support scheme from April 2027 to lower electricity bills for thousands of industrial businesses, but mobile operators are currently not included as direct beneficiaries.

Telecoms operators believe continued increases in power costs will inevitably affect network operations. They say options could be considered, including limiting network access at certain times or lowering data speeds to reduce power use.

The industry said mobile calls and mobile data services are likely to be affected first. Fixed broadband services could also see a drop in quality depending on conditions, it said. In that case, users may experience slower data speeds during congested periods or poorer call quality. It also raised the possibility that higher electricity costs could lead to higher prices even if usage does not change.

The telecoms industry also says a negative impact on 5G investment is unavoidable. Some industry officials warned that if the power cost burden persists, operators could consider not only scaling back 5G network expansion plans but also cutting staff or moving overseas operations.

In the background is the telecoms network's heavy reliance on electricity. Mobile networks must operate 24 hours a day, which means power consumption is huge. The industry says annual electricity use by the UK telecoms sector is about 1 terawatt-hour (TWh), comparable to the amount needed to supply electricity to about 370,000 households.

Telecoms operators stressed that unlike manufacturing, it is not realistic to reduce network usage during periods when electricity is expensive. That is because mobile networks must always remain operational.

Market watchers also say that with complaints already present about telecoms quality in the UK, any additional service deterioration could increase user backlash. The UK has been assessed as having regional gaps in telecoms coverage and relatively low 5G speeds among the Group of Seven (G7) countries.

The industry says operators ultimately have limited response options. It said that if they cannot absorb higher power costs on their own, the burden may be passed on through adjustments to service quality or higher consumer prices.

This is expected to bring forward a major policy issue over how the UK government will treat mobile networks within its energy support framework while recognising them as critical national infrastructure.