Could Brexit harm telecoms operators and customers?
The impending referendum has raised a lot of questions about the effect that Brexit could have on the telecoms industry.
The report from the Economist Intelligence Unit has not painted a rosy picture for the industry, with concerns regarding revenue, investment and roaming. The research suggests that there could be a negative impact on the telecoms industry if the vote is for Brexit.
The findings hint that investors would see the UK as an unsafe place for an investment, and there is a predicted recession for next year that would see less investment in networks. Businesses and consumers would then see a poorer standard of service, as there could also be a potential exclusion from the digital single market in Europe. The UK may also not be able to benefit from the plans to abolish roaming costs in the EU from next year.
If the UK stays within the EU, there would be a rise of 29% in telecoms investment between 2015 and 2020. However, if Brexit occurs, then this investment would drop to 23%. If the UK remains, revenue could rise by 21%, but this would drop to 12% in the event of a Brexit. Other issues that could have an impact on the telecoms industry include higher levels of unemployment and a drop in GDP, both predicted if Brexit occurs.
The report suggests that there would be no growth in the economy until 2020 and that the industry would also be harmed because people would be spending less on telecoms services.