The UK’s critical national infrastructure (CNI) is in urgent need of digital transformation. A recent study by Assembly Research, published by BT, reveals that this switch could result in an economic benefit exceeding £3 billion by 2040. This report underscores the advantages of transitioning from outdated analogue systems to modern digital services for the country’s infrastructure sectors.
The ageing Public Switched Telephone Network (PSTN) has become increasingly unreliable, with resilience issues rising by 45%, according to data from UK telecom regulator Ofcom. This unreliability carries a “cost of inaction” that could total £437 million if enterprises delay the transition.
Jon James, CEO of BT Business, emphasized, “This research sends a clear message: delaying the shift to digital carries a real cost to public services, the environment and the wider economy.” James added that legacy systems’ increasing unreliability makes the case for action urgent.
Sectors across the UK stand to gain significantly. The energy sector could save £1.4 billion through enhanced resilience and improved demand forecasting. The water industry might save £771 million by implementing smarter network monitoring and reducing electricity use. Local government could trim costs by £486 million through modernized telecare systems and decreased maintenance on old equipment.
Matthew Howett, Founder & CEO of Assembly Research, stated, “For the first time, we’ve lifted the lid on legacy network migration and worked to understand the scope and scale of how key UK industries are still relying on aging fixed and mobile networks.”
In addition to financial benefits, the shift to digital connectivity promises positive social and environmental impacts. The initiative is expected to cut 3.42 megatonnes of carbon emissions, equal to powering all homes in Birmingham for a year. Moreover, digital telecare is projected to avert over one million emergency call-outs and 750,000 ambulance trips by 2040.
This digital transition will liberate substantial staff time, equating to the workload of 6,850 full-time employees across council and National Health Service staff. Shifting away from legacy fire alarms may also prevent up to 280,000 false fire service callouts.
Despite these benefits, the UK lags behind peers like Germany and Spain, which are nearing the completion of their digital migrations. The PSTN is scheduled for full retirement by January 2027, and UK organizations are encouraged to switch by the end of 2025 to avoid disruptions.
