The promise of 5G to relieve pressure on the saturated public sector.
A 5G network can provide savings in both costs and carbon emissions.
The public sector in the United Kingdom has been facing serious financial problems in recent years, with deteriorating infrastructure and enormous operational pressures on the NHS. Chancellor Rachel Reeves announced a financial shortfall of £22 billion this year, reflecting the magnitude of the challenge. According to the Local Government Association, nearly one in five local councils could be on the brink of bankruptcy by March 2025, with the County Councils Network projecting a funding deficit of £54 billion for local councils in England over the next five years.
The daily management of these facilities poses a significant economic challenge, particularly due to declining funds and rising energy costs. In 2023/24 alone, these additional costs amount to over £95 million added to the total expenses of councils.
However, technology could offer a pathway to solutions. Recent models from Vodafone UK and WPI Strategy suggest that digital technologies powered by 5G could reduce energy costs and improve efficiency in public buildings such as hospitals, schools, and leisure centers. Research indicates that technologies like digital twins, which are virtual models of buildings, allow engineers to monitor and optimize facility performance, quickly identifying maintenance needs and opportunities to cut costs and energy consumption.
The Internet of Things (IoT) facilitates communication between devices, and smart sensors installed in public buildings can enhance data collection and analysis. It is estimated that, if these technologies are implemented in the public sector, carbon emissions could be reduced by 1.43 million tons of CO2e per year, equivalent to the annual electricity consumption of nearly 300,000 homes, a figure greater than the population of a city the size of Leeds.
The adoption of these technologies could result in significant savings on energy bills for the UK, estimated at £580 million annually of public money. Although these technologies are already available, their potential would increase significantly by employing a Standalone 5G (SA) network, which is fully updated and does not rely on previous technologies like 4G.
NHS hospitals, which welcome an average of 47,000 visitors daily and require substantial resources to operate, could benefit immensely. By utilizing 5G-backed digital twin technology, these facilities could save up to £219.7 million each year by optimizing their energy use.
Leisure centers are also in a precarious situation, with more than 1,000 swimming pools closing since 2010 and another 1,500 at risk of closure. However, through effective connectivity with a 5G SA and IoT system, these centers could potentially save up to £72.1 million annually by optimizing the monitoring of temperatures and water quality.
In the educational sector, schools, which also face challenges in terms of energy efficiency, could potentially save up to £94 million annually thanks to 5G-enabled sensors. These sensors would allow for continuous monitoring of systems like heating and ventilation, facilitating early detection of issues and adjustment of systems according to usage.
Despite the Government’s awareness of the need to improve cost efficiency in the public sector, only 34% of survey respondents are aware of how technology can help reduce energy consumption and, consequently, financial expenses. Research suggests that 5G-powered technologies could generate annual savings of £580 million and reduce the carbon footprint by 17%, aligning with government goals.
A significant investment in digital infrastructure is essential to ensure the successful implementation of 5G SA in the UK, allowing schools and hospitals to benefit from these efficiencies. Thus, innovative thinking and ongoing collaboration will be required to address the shortfall in public finances and generate economic benefits for the country.