Accelerating towards a digital future: The case for modernising UK infrastructure

BT has unveiled new economic modelling from Assembly Research that underscores the fiscal, societal, and environmental advantages of transitioning the UK’s Critical National Infrastructure (CNI) sectors from antiquated analogue systems to cutting-edge digital networks. By 2040, this move could yield a £3 billion net economic benefit across key areas like energy, water, health, and emergency services.

The research took into account the costs, potential risks, and gains of this digital transition. The study assessed the direct expenses associated with upgrading against the mounting costs of maintaining legacy systems such as the Public Switched Telephone Network (PSTN) and the 2G mobile network. Ofcom data indicates a 45% increase in resilience incidents on the PSTN, reinforcing the urgency of the transition.

Beyond financial gains, the shift promises undeniable societal and environmental advantages by 2040:

• 750,000 unnecessary ambulance trips could be curtailed, translating to over 100 fewer daily journeys.
• 12 million hours of council staff time could be freed, equivalent to the workload of 6,500 full-time staff annually.
• 600,000 NHS staff hours could be conserved, akin to the yearly workload of 350 full-time workers.
• 280,000 false fire service callouts may be averted as businesses transition from outdated fire alarms, amounting to 54 daily false alarms.
• 3.42 megatonnes of carbon emissions could be reduced, comparable to powering every home in Birmingham for a year.

Looking ahead, digital migration offers significant enhancements for the UK’s infrastructure. The energy sector could see a £1.4 billion saving through improved resilience, outage prevention, and precise demand forecasting. In the water sector, better network monitoring and decreased electricity usage could lead to £771 million in efficiencies.

Local governments, under constant pressure to optimise resources, might save £486 million by modernising telecare systems and reducing the costs of outdated equipment maintenance. Meanwhile, the NHS could benefit from enhanced call handling and emergency response efficiencies. Emergency services could see enhancements in false alarm reduction and call management, allowing for more effective responses.

The UK's shift to digital connectivity is a significant national infrastructure programme, backed by Ofcom and the Government. The Public Switched Telephone Network is slated for full retirement in January 2027, with sectors encouraged to complete their migrations by 2025 to prevent last-minute disruptions.

In 2024 alone, BT transitioned 300,000 legacy PSTN business lines. However, many UK CNI providers still depend on ageing analogue systems, while several countries, including Germany and Spain, are nearing the completion of their migrations. Without an accelerated pace, the UK risks lagging behind its European counterparts.