The Connected Britain 2026 conference highlighted a significant shift in the UK's telecoms market: the connectivity challenge is becoming less about building infrastructure and more about the outcomes it delivers. The industry is entering a new phase centred on performance, adoption, resilience and long-term value creation.

The message from regulators, operators and policymakers was remarkably consistent: the challenge is no longer simply extending coverage. After a decade of building fibre networks, extending mobile reach and investing in next-generation technologies, the focus is shifting to how those networks drive productivity, inclusion, security and sustainable growth. Success will be measured not by what has been built, but by the outcomes delivered.

If the conference can be distilled into a single takeaway, it is this: the telecoms sector is moving from building networks to extracting value from them.

1. Coverage to Customer Experience

One of the strongest conference themes was the shift from measuring network availability to measuring performance. Ofcom's Natalie Black observed that consumers do not care about coverage maps or signal bars — they care whether their connection works when they need it. This shift is increasingly shaping both regulatory policy and commercial strategy.

This was reflected across MNO discussions.

  • VodafoneThree, as part of securing CMA approval, has committed to an £11 billion network investment programme over seven years and is expected to demonstrate tangible customer improvements. Investment alone is no longer the measure of success — operators must show measurable gains in quality, capacity and performance.
  • BT and EE struck a similarly positive tone, emphasising 5G Standalone deployment, multi-spectrum networks and small-cell infrastructure. The competitive battleground is moving from coverage towards experience differentiation.

In the fixed-line market, the discussion has moved beyond network construction. Many operators are focused on driving take-up and profitability within existing footprints rather than expanding geography, targeting new-build developments and concentrated growth areas to improve returns from existing investments.

Operators are also differentiating through pricing models, product segmentation and service offerings rather than competing solely on headline price. The challenge is balancing average revenue per user, customer acquisition, penetration and long-term retention.

The industry has built significant infrastructure (as significant cost to investors). The next challenge is ensuring those networks deliver connectivity people can count on — and generate sustainable returns.

For operators, this represents a fundamental shift in how investment decisions are justified. For local authorities and public sector organisations, it reinforces the importance of focusing on real-world user outcomes when assessing digital infrastructure programmes.

2. Collaboration: the next competitive advantage?

Competition drove the expansion of fibre and mobile networks. The next stage may depend on collaboration — a theme that emerged consistently throughout the conference, particularly in Natalie Ceeney's opening keynote for The Connection Project.

The message was simple: digital participation must become a national objective.

Approximately one million people across the UK remain digitally excluded despite significant infrastructure investment. Making services simpler, encouraging trusted support and ensuring nobody is left behind were recurring themes. The challenge is no longer building networks but ensuring businesses, communities and individuals derive meaningful benefit from them. Commercial operators reiterated calls for planning reform, citing delays in obtaining permissions and inconsistent approaches across local authorities as ongoing barriers. Achieving the UK's connectivity ambitions will require closer collaboration between operators, regulators, government, local authorities and landowners.

3. Connectivity as critical national infrastructure

Telecommunications infrastructure is increasingly recognised as a strategic national asset, with discussion focused on resilience, security, sovereignty and the role connectivity plays in supporting economic growth.

Telecoms infrastructure is no longer viewed solely as a commercial utility. It underpins transport, healthcare, education, emergency services, public administration and economic activity — a point reinforced by discussions around the Cyber Security and Resilience Bill and growing emphasis on network resilience.

For public sector organisations, this reinforces the importance of digital infrastructure within wider economic development and public service strategies. Local authorities are increasingly acting not only as planning bodies but as digital place leaders, creating environments where connectivity supports broader social and economic objectives.

Security was discussed not simply as a regulatory obligation but as a customer proposition. Sessions explored consumer cyber security, including endpoint, router-based and network-level protection. The strongest consensus centred on network-based protection as key to delivering customer-focused outcomes. Consumers increasingly expect providers to identify and prevent threats automatically, and operators that can differentiate by managing security on their customers' behalf will be better placed commercially.

As telecoms networks become critical national infrastructure, trust, resilience and cyber security are becoming as important as speed and coverage in influencing customer decisions.

4. Challenges

Despite considerable progress in fibre and mobile deployment, questions remain around the sustainability of future investment. Several participants highlighted a tension between affordability and investment: the UK's highly competitive market has delivered significant consumer benefits but placed pressure on returns for infrastructure investors.

Converting investment in network build into a sustainable business continues to be a challenge for many altnets. To emphasise this point, last week the administrators for failed altnet, Airband, announced that its network assets and customers had been sold for just £4.6m. At the point of entering administration, Airband had debts of over £300m. While this might create opportunities for those with the funds to acquire distressed network assets, investors will continue to be nervous.

Operators also face growing capital requirements for 5G Standalone, cyber security, resilience measures and AI-driven capacity demands. The debate was evident in discussions around the Government's Mobile Market Review and the ambition to achieve nationwide 5G Standalone coverage by 2030 — a vision requiring significant private capital.

The discussion has evolved from whether investment is required to how it can be sustained over the long term.

Planning reform was another challenge that featured prominently, with consensus that closer collaboration between operators, regulators, government, local authorities and landowners is needed to remove deployment barriers and accelerate investment.

5. Consolidation: people as much as technology

Market consolidation remains forecast, but the focus has shifted to how it is managed in practice. Combining infrastructure is rarely the most difficult part of a transaction. The biggest challenges often arise from integrating systems, operating models, data architectures and organisational cultures.

Speakers emphasised the importance of understanding OSS, BSS and data architecture early in any integration, alongside defining a clear target operating model before attempting transformation.

The strongest messages were often the simplest: trust, honesty, clarity and cultural alignment remain fundamental to successful integration. Technology can be replaced more easily than organisational behaviour.

6. Can the infrastructure sustain AI demand?

AI featured heavily across both telecoms and public sector discussions, with a striking focus on practical infrastructure requirements. Operators, investors and policymakers increasingly view AI as an immediate challenge requiring power, land, data centres, fibre connectivity and operational capacity.

Questions were raised about whether existing infrastructure can support forecast AI demand and whether current investment levels reflect future requirements, with considerable discussion around data centres, edge computing and how networks can be future-proofed.

The rise of edge computing was a notable topic. While hyperscale providers remain critical, increasing attention is being given to edge and enterprise-edge environments offering lower latency and improved performance for AI workloads. The technology largely exists today; the challenge lies in adoption, skills and execution.

Conclusion

Compared with Connected Britain 2024 and 2025, this year's conference marked a notable step in the maturity of the market.

  • In 2024, the focus was largely on extending coverage, overcoming deployment barriers and converting network build into customer adoption.
  • By 2025, attention had shifted to realising value from investments through greater uptake, regulatory support, sustainable competition and recognising telecoms as a strategic economic enabler.
  • 2026 was noticeably more operational and outcome-focused.

The debate has moved from whether networks should be built, or how adoption should be encouraged, to how operators, investors, government and regulators can generate sustainable returns, improve customer experience, secure critical infrastructure and support AI-driven growth. There was also greater emphasis on execution, resilience and accountability — network quality over coverage, consumer cyber security as a commercial differentiator, and the role of local authorities in delivering digital inclusion and public service transformation.

The next phase of the UK's digital economy will not be defined by coverage statistics or fibre passings but by whether connectivity delivers better outcomes for consumers, businesses and public services. Quality over coverage. Adoption over availability. Outcomes over infrastructure. That shift is both the sector's greatest challenge and its greatest opportunity.

Please visit our dedicated Telecoms webpage for more information on our team and what we can offer at Brodies LLP to support the telecoms sector.

Contributors

Martin Sloan

Partner

Lucie Barnes

Partner

Jennifer Murphy

Senior Associate

Lisa Stratford

Legal Director

Scott Logan

Partner