Millions of mobile phone users in the UK could face data rationing and surge pricing as the ongoing conflict between the US, Israel, and Iran continues to drive a global energy crisis. Telecom giants VodafoneThree, Virgin Media O2, and BT-owned EE are reportedly drawing up emergency plans to cope with soaring fuel costs, which have been exacerbated by the war.
Energy Costs Threaten Mobile Networks
The companies were excluded from Chancellor Rachel Reeves's energy support scheme for struggling businesses, leaving them to bear the brunt of rising electricity prices. Technology expert Darren Corney of Insurance2go explained that every phone call, WhatsApp message, or TikTok video relies on thousands of mobile masts, data centres, and cooling systems that run 24/7, consuming significant energy. When demand spikes at peak times, electricity requirements also surge.
Potential Measures: Throttling and Surcharges
To avoid a digital dark age, telecom bosses are considering rationing coverage or slowing data speeds—a practice known as throttling. Surge pricing, where prices rise during periods of high demand, is also being considered to help restrain energy costs, according to The Telegraph. Additionally, surcharges similar to roaming fees when using phones abroad could be introduced. Corney noted that for most people, it would not be a hard ration but a gradual squeeze.
Impact on 5G Rollout
Plans to expand power-hungry 5G networks—which are essential for commercial applications in AI, manufacturing, healthcare, and transport—may also be scaled back. Each 5G mast consumes as much power as 73 households, with some experts calling them 'energy vampires.' The entire mobile network uses about 370,000 homes' worth of electricity annually, or nearly one terawatt-hour.
Root Cause: Iran Conflict
The cost of keeping electrical grids flowing has skyrocketed due to the Iran war, as oil tankers can no longer navigate the Strait of Hormuz. With the waterway along Iran's southern coast blocked, countries like the UK face reduced fuel imports, driving up prices and inflation. Corney emphasized that mobile data is not an invisible, free resource but is powered by real infrastructure, and when energy costs soar, something has to give.
Telecom Companies Respond
Virgin Media O2 told Metro that it has no plans to ration data or throttle services. A spokesperson stated that mobile and broadband networks are critical national infrastructure, yet telecoms have been excluded from energy support offered to other sectors. They urged the government to work with telecoms to find appropriate support mechanisms. A BT Group spokesperson said the company is engaging with government officials via Mobile UK but has no current plans to ration access, reduce speeds, or introduce surge pricing. VodafoneThree has been approached for comment.
