The UK government’s autumn statement said it will invest a total of more than £1 billion to trial 5G networks and support the private sector in rolling out more full-fibre broadband by 2020-21.

Around £740 million is set aside for 5G, aimed at boosting “the next generation of mobile connectivity and keep the UK in the forefront of the Internet of Things”, as well as fibre.

Chancellor Philip Hammond said his ambition “is for the UK to be a world leader in 5G — that means a full fiber network, a step change in speed, security and reliability. So we will invest over £1 billion in our digital infrastructure to catalyse private investment in fiber networks and to support 5G trials.”

Further detail will be set out in the 2017 budget under the government’s 5G strategy.

Meanwhile, £400 million will be used to set up a Digital Infrastructure Investment Fund, expected to be matched by private finance, to invest in new fibre networks over the next four years.

From April 2017, the government will also provide a 100 per cent business rates relief for new full-fibre infrastructure for five years.

This comes after the proposal for a fourfold rise in business rates was met with criticism by many, including Virgin Media’s CEO Tom Mockridge who also said red tape for gaining access to local civil infrastructure is a major barrier for telecom companies.

The business rates relief will benefit both Virgin Media and BT, who are investing £9 billion on fixed network upgrades.

The chancellor also said that the government would ask the National Infrastructure Commission for recommendations on the UK’s future economic infrastructure needs.