When you think of major UK cities like London, Birmingham, and Manchester, you might imagine bustling hubs of innovation, blanketed with cutting-edge fibre broadband and seamless 4G/5G mobile coverage. After all, these are the economic powerhouses of the UK, home to millions and driving much of the nation’s digital economy. Surely, they’d be at the forefront of connectivity, with multiple providers offering consumer choice and lightning-fast speeds. However, as Stacey McAdie, Digital Champion at the South London Partnership, highlighted at the Parliament & Internet 2025 conference, this assumption is far from reality. Even in these urban centres, connectivity lags behind expectations due to planning hurdles, access issues, inconsistent infrastructure commitments, and a slowing alternative network (altnet) market. This blog post explores these challenges and what they mean for urban residents and businesses.
The Surprising Connectivity Gaps in Urban Centres
At the Parliament & Internet 2025 conference, Stacey McAdie dropped a bombshell: “Even in London, you would expect the most connected UK city, we have residents and businesses with extremely low speeds, sub 40Mb, and no 4G/5G option.” This revelation shatters the perception that major cities are fully connected. In London, where 92% of premises can access gigabit-capable broadband and 75% have full-fibre, pockets of the city still struggle with speeds insufficient for basic tasks like streaming or remote work. Birmingham and Manchester face similar issues, with urban “not spots” where connectivity is patchy or outdated. A 2023 ISPreview article noted that urban areas often have “small islands” of poor provision due to complex deployment challenges, a problem that’s not exclusive to rural regions.
Why does this persist in cities? You’d expect urban density to make infrastructure deployment easier, but McAdie and other sources point to a web of barriers that hinder progress, from planning restrictions to economic pressures. Let’s unpack these issues.
Planning Hurdles: The 5G Mast Standoff
One major obstacle is the difficulty in deploying 5G masts. While 4G coverage is widespread (93% of the UK, per the Shared Rural Network update), and 5G is available to 77% of premises from at least one operator, urban deployment faces unique challenges. Planning permissions for new masts are often delayed or blocked due to local council concerns about aesthetics, health perceptions, or environmental impact. In dense city environments, finding suitable sites for masts is tricky, with limited space and competing demands for infrastructure. Residents’ objections can further complicate approvals, as communities may resist new installations despite the need for better mobile coverage.
This creates a paradox: urban areas, where demand for high-speed mobile data is highest, often lag in 5G rollout due to these bureaucratic and social barriers. For businesses and residents relying on mobile connectivity for work, education, or services like NHS app bookings, these gaps are more than an inconvenience—they’re a barrier to participation in the digital economy.
Wayleave and MDU Access: The Urban Access Challenge
Another significant hurdle is securing access to multi-dwelling units (MDUs) like apartment blocks, which are common in cities like London, Birmingham, and Manchester. As Clive Selley, CEO of Openreach, noted in 2024, wayleave agreements—permissions from landlords or property managers to install fibre—are a major bottleneck. Landlords may delay or refuse agreements due to concerns about building damage, insurance, or safety (e.g., fire risks or asbestos). Even when permission is granted, logistical issues arise. If build teams move on before access is secured, residents can be left waiting months or years for upgrades, as one Londoner reported being stuck on ADSL2 despite living next to a telephone exchange.
This issue disproportionately affects urban MDUs, where high population density should, in theory, make fibre deployment cost-effective. However, as ISPreview points out, the complexity of upgrading copper lines in MDUs and the risk of handing incumbent operators like Openreach a competitive edge (due to their legacy wayleave portfolios) complicates the process. Altnets like Community Fibre or CityFibre struggle to gain traction in these buildings, reducing consumer choice and leaving some residents with subpar connectivity.
Openreach’s Varying Commitment: A Patchwork of Progress
Openreach, the UK’s largest network operator, plays a pivotal role in urban broadband rollout, with a £15 billion plan to reach 25 million premises by 2026. However, their commitment varies across areas, impacting competition and government voucher schemes like those under Project Gigabit. In some urban patches, Openreach’s focus on commercially viable areas leaves “small islands” neglected, as high build costs or access issues deter investment. For example, in Birmingham and Manchester, where gigabit coverage is slightly behind London (85% and 73% full-fibre in the South East, per ISPA data), Openreach’s build plans may skip certain exchanges if altnets like CityFibre or Gigaclear are already active, as seen in a Cambridgeshire case where Openreach deferred plans due to competition.
This variability stifles competition, as altnets struggle to scale in areas where Openreach dominates or where voucher schemes (designed to stimulate demand) are less effective due to low awareness or complex eligibility. The ISPA report notes that only 53% of UK residents are aware of the full-fibre upgrade, with awareness even lower in non-London urban areas. Without consistent investment and clear communication, urban enguagement,public support, these urban connectivity gaps persist.
The Altnet Slowdown: Economic Pressures and Low Take-Up
The alternative network (altnet) market, which includes providers like CityFibre, Gigaclear, and Nexfibre, has been crucial in driving competition and expanding fibre access in urban areas. However, as Giles Rowbotham of Nexfibre highlighted at the conference, the altnet market is facing a slowdown due to two key factors: the high cost of lending and lower-than-expected take-up rates. The cost of borrowing has risen, making it harder for altnets to secure funding for ambitious rollouts, especially as investor confidence wanes due to take-up rates averaging around 35% of eligible premises. This is a significant issue in cities, where altnets compete with established players like Openreach and Virgin Media, and consumers may stick with familiar ISPs rather than switching to newer providers, as noted in ISPreview discussions.
Low take-up is particularly problematic in urban areas, where multiple providers may serve the same area, leading to “overbuild” issues. For instance, in some London estates, Openreach faces competition from CityFibre and Netomnia, yet achieves higher take-up (up to 60%) due to brand trust. This overbuild, where multiple networks cover the same area without sharing infrastructure, can lead to inefficiencies and higher costs, further straining altnet finances.
The Path Forward: Solutions for Urban Connectivity
Addressing these urban connectivity challenges requires a multi-faceted approach. For 5G deployment, streamlining planning processes and engaging communities to address concerns about masts could accelerate progress. The government’s Wireless Infrastructure Strategy, aiming for standalone 5G coverage to all populated areas by 2030, emphasises reducing investment barriers, but urban councils need support to balance local concerns with connectivity goals.
For MDU access, reforms like those proposed by Openreach—such as automatic upgrade rights—could help, but must be balanced to avoid giving incumbents an unfair edge. Initiatives like Openreach’s Fibre Community Partnership and voucher schemes could also incentivise landlords and residents to prioritise upgrades, particularly if paired with targeted awareness campaigns to boost take-up.
To support altnets, Ofcom’s proposed regulations for 2026-31 aim to foster competition by ensuring access to Openreach’s infrastructure and capping wholesale prices for basic broadband (up to 80Mbps). Additionally, Project Gigabit’s £5 billion investment in hard-to-reach areas, including urban pockets, could bridge gaps if allocated effectively, though competition law limits state aid in cities. Local champions like McAdie could lead community-driven efforts to educate residents about full-fibre benefits, addressing the awareness gap (only 42% in London know about upgrades) and encouraging adoption.
Conclusion: Closing the Urban Digital Divide
The assumption that major cities like London, Birmingham, and Manchester are connectivity havens is a myth that Stacey McAdie’s insights debunk. Planning hurdles for 5G masts, wayleave and MDU access issues, Openreach’s uneven build commitments, and the altnet market’s struggles with lending costs and low take-up create a patchwork of connectivity that leaves some urban residents and businesses stuck with sub-40Mb speeds and no mobile alternatives. These challenges demand coordinated action: regulatory reforms to boost competition, streamlined planning and access processes, and targeted campaigns to drive awareness and adoption. As the UK pushes toward its 2030 goal of nationwide gigabit and 5G coverage, ensuring that urban centres aren’t left behind is critical to building a truly connected future.