UK Risks Falling Behind in AI Race Without Faster Telecoms Upgrades, Say Executives

UK mobile networks lag behind EU and G7 peers, and executives say planning reform is essential to handle the coming AI traffic surge.

Last Updated: August 29, 2026 Editorial Process
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Published on: August 29, 2026

August 29, 2026, (Inside AI) — The United Kingdom is at risk of falling behind in the global artificial intelligence race because its mobile networks cannot handle the coming surge in AI traffic, senior telecom executives warned this week.

Planning delays and slow 5G upgrades are the core problems. While the country has fixed its broadband reputation, mobile performance now trails every European Union member state and every G7 nation.

The infrastructure battle for AI has focused on data centres, energy and water. But as AI spreads into everyday apps and devices, the UK's wireless networks will carry immense new volumes of data from consumers and businesses.

Andrea Donà, networks director at VodafoneThree, the UK's largest mobile operator, said current network quality is already unacceptable.

"If with the technology and services we use today [networks] are sub-optimal, imagine when you add mass AI usage and other associated activities," Andrea Donà, networks director, VodafoneThree.

"I would go further. I am embarrassed today at the level of quality of our network[s]. The UK is worthy of what EE, O2 and VodafoneThree can offer, but we need reform." Andrea Donà, networks director, VodafoneThree.

Donà compared future AI traffic to the signal loss consumers already experience at packed events like Wembley Stadium, Silverstone or Twickenham.

"What we see now only with a mass aggregation of people is a proxy, an indication of the things that will come. That [one-off] experience will be constant because of the additional capacity [consumers] will need in an AI world." Andrea Donà, networks director, VodafoneThree.

Another senior telecom executive, who spoke on condition of anonymity, said AI and connectivity is still a nascent issue but will become a national competitiveness problem.

"Things are going to change massively with the next wave of devices, in two or three years when AI is integrated into everything," the executive said. "AI companies, and governments, don't think about networks, but they will when they hold them back."

UK mobile operators are investing heavily in 5G standalone technology. VodafoneThree has committed £11 billion to upgrade masts. But the industry says planning rules are the real bottleneck.

Donà said VodafoneThree is actually reducing its mast count by 30%, not building more sites. About 96% of its needed upgrades are on existing sites, yet more than half still require planning permission.

"Andy Burnham has his agenda on growth," Donà said. "Our infrastructure is here to help the government and UK economy. Planning reform is the lowest possible cost growth policy - it doesn't require any government money. It could be a great first 100 days-win for the new prime minister."

Why Mobile Networks Lag Behind Fibre

The UK has already solved its broadband embarrassment. BT's Openreach and other providers have rolled out full-fibre connections across much of the country. But 5G mobile upgrades have not kept pace.

Consumer group Which? recently ranked the UK 57th globally for network performance, 70th for download speeds and 55th for reliable quality needed for video calls, streaming and gaming. The analysis used data from Opensignal.

Mobile operators argue their networks are classified as critical national infrastructure, just like data centres, energy and water systems. Yet they do not receive the same government reliefs on business rates and energy costs.

The planning system remains the biggest friction point. Upgrading an existing mast can trigger lengthy bureaucratic reviews, slowing the rollout of 5G standalone technology that AI applications will demand.

Industry executives want planning reform treated as a zero-cost growth policy. They point out that faster approvals require no government spending and could deliver quick wins for the new prime minister.

The warning comes as AI adoption accelerates across smartphones, wearables, vehicles and industrial sensors. Each new AI feature adds constant background data traffic, unlike the one-off spikes seen at concerts or sports events.

Without faster upgrades, the UK could face a connectivity crunch just as AI becomes embedded in daily life. The executives argue that networks are the invisible foundation of the AI economy, and ignoring them now will cost competitiveness later.

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