In 2023, London’s tech sector will see some big changes. From change in Vodafone leadership to the Online Safety Bill, here is a look ahead to the five big City stories to watch out for.
Online Safety Bill
As part of a move to a safer internet, the UK government is pressing for a comprehensive Online Safety Bill. The bill is sponsored by the Department for Digital, Media, Culture and Sport. It has completed proceedings in the Public Bill Committee on re-committal with to be concluded by mid January 2023.
The Bill is an attempt to regulate harmful content online and comes after backlash towards platforms like TikTok and Facebook. In 2022, harmful online content was cited as a cause for the death of British teen Molly Russell.
In a letter about the Bill, Culture Secretary Michelle Donelan wrote to parents and guardians of minors saying “We have already seen too many innocent childhoods destroyed by this kind of content, and I am determined to put these vital protections for your children and loved ones into law as quickly as possible.”
Vodafone CEO Shuffle
After a year of financial duress, Nick Read, the CEO of UK-based broadband and mobile giant Vodafone, has stated that he will step down as Group Chief Executive Officer (CEO) and as a Director on 31st December 2022.
This comes after the tech telecom giant’s value dropping by nearly 50 per cent in the last four years. The change in leadership is set to herald big changes at the British company. Names from the Liberty Group, O2 and Three have been floated as potential successors for Read.
Commenting on the change, the exiting CEO said that he “agreed with the Board that now is the right moment to hand over to a new leader who can build on Vodafone’s strengths and capture the significant opportunities ahead.”
Telecom Consolidation
Along with the CEO shuffle, Vodafone and Three are in advanced stages for a potential merger.
ln late September, Vodafone confirmed both operators are in advanced talks over a deal, which could potentially value a merger deal between £12 b to £15b. Going forward, the potential merger would see Vodafone owning 51 percent of the business, with CK Hutchison, operators of 3, owning the remaining 49 percent.
“By combining our businesses, Vodafone UK and Three UK will gain the necessary scale to be able to accelerate the rollout of full 5G in the UK and expand broadband connectivity to rural communities and small businesses,” Vodafone said in a statement about the possible 2023 merger.
Media Bill
The Media Bill was first introduced by the Boris Johnson government, but Prime Minister Rishi Sunak has indicated his continued support for it.
However, plans to privatise Channel 4 have been dropped from the Bill. The potential sale was widely criticised given concerns about the impact on the UK’s independent production sector, which relies heavily on commissions from Channel 4. Channel 4 had said a sale would cost the economy £3bn and put many production companies out of business.
Other than the sale, the Media Bill includes plans to update the public broadcasting framework and bring streaming services like Netflix under Ofcom purview. It would give the control more control over streaming tech and content.
Government Funds for 5G
The UK government is pushing forward with its plans to have a wider, accessible 5G roll out.
For this, research and development on next-generation 5G and 6G wireless technology and telecoms security is to be ramped up as part of a £110m government investment.
As part of the investment, the University of York, University of Bristol and University of Surrey, will receive a share of £28m to team up with major telecoms companies including Nokia, Ericsson and Samsung to design and build networks of the future such as 6G. The package also includes £80m for a state-of-the-art UK Telecoms Lab being built in Solihull in the West Midlands.
Hamish MacLeod, Chief Executive of Mobile UK, said that “International collaboration and investment in research and development of this kind are absolutely essential if the UK is to be a leader in the development of open networks that push for the highest standards of security, innovation and power efficiency.”
With big changes and big bucks making waves, the UK tech sector is likely to see a revamp in 2023.
