Government plans £150m mobile coverage boost

The government is to invest £150 million in new mobile phone masts, in a bid to have mobile phone coverage reach 99 percent of the UK.

Chancellor George Osborne announced the move in a growth-focused speech on Monday, which also outlined big investments in IT infrastructure and graphene research. Osborne said the base station investment would give reception to up to six million people who currently lack it.

In a statement accompanying the Chancellor's speech, the Treasury said the investment would "improve the coverage and quality of mobile services for the five to 10 per cent of consumers and businesses that live and work in areas of the UK where existing mobile coverage is poor or non-existent".

"The Government will aim to extend mobile service coverage to 99 per cent of the UK population. The procurement of additional mobile phone mast sites to increase coverage will begin in 2012," the statement added.

According to the announcements, the installation of the masts will take place "in consultation with local communities", and the Treasury has identified parts of Wales, Scotland and Northern Ireland as being in particular need.

It is not clear how the government will portion out its mobile mast investment, as direct payments to operators may fall foul of state aid rules. According to the Treasury, further details will emanate from the Department for Culture, Media and Sport (DCMS) "in due course".