What will Brexit mean to the telecoms industry?

There’s no doubt that a sense of uncertainty has been circulating ever since the vote for Brexit. At this momentous time in British history a whole list of questions are running through everyone’s mind. There seems to be a mixed bag of opinions as to whether this will have a positive or negative effect on our country.

One of which concerns what this could mean for the telecoms industry. It has been suggested that industry regulations may no longer be constrained by EU directives. This could mean that significant requirements for investment in telecoms could disappear.

Having said that, the EU seems to think that telecoms may escape the worst in relation to certain regulations related to EU roaming charges, due to no longer having to adhere to the same obligations in EU regulations.

Secondly one of the most prominent areas being discussed in relation to Brexit is what will happen to roaming fees and charges? What was achieved within the EU was the almost complete eradication of roaming charges across European countries, something that was predicted to be completely abolished come 2017, had we voted remain.

However as mentioned, having voted leave the UK will now be exempt from certain regulations attached to the EU. What’s more is the claim that this won’t drastically affect telecommunications due to a vast amount of consumers engaging with operators on a national basis.  

Since the verdict for Brexit Vodafone have come forth and claimed,

                “We remain committed to supporting our UK customers regardless to the outcome, now and in the future. It is too soon to form a view on the implications of the referendum outcome for the domicile of the group.”

With that said, it is clear that nobody really knows what the true or definite outcome of the referendum will be on the telecommunication industry. There is a long list of variables and inter-dependencies, that it would be impossible to predict the future accurately at this moment in time.

However, despite the uncertainty and worry in some cases there are also some positive outcomes visible already. According to Oxera, if we were to have voted remain, UK operators could have faced a loss of up to £500 million per year due to the new EU legislation, which as a result of leaving means we may avoid.

Here at Lake we understand that we are in a transitional period that does equate to uncertainty. However, we must all be patient and wait for the dust to settle on the referendum result and wait to see the improvements that will hopefully be made.

If you would like any advice on selecting the best telecommunications system for you if you are a SME in the UK, then please call a trusted member of our expert team today on 0330 404 3048. Find out how we can build a solution expertly tailored to your needs.

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