How to Set Up a Telecommunications Business in the UK
A quick read on how to set up a telecommunications business in the UK from the experts at 3E Accounting.
The history of humanity is filled with a variety of communication methods. We have certainly come a long way from banging drums or using smoke signals to get the message across. Mechanical telecommunications have evolved to mobile and electronic ones, enabling the modern person to communicate almost instantaneously. In the United Kingdom, the telecommunications industry brought in GBP3.32 billion within the first quarter of 2020. It is a sector that is constantly growing, even during recessions and global pandemics. Here’s what you need to know about how to set up a telecommunications business in the UK.
The Art of Communication
In the UK, telecommunication or telco businesses have been deregulated since the year 2000, opening up the monopoly to competitors. This spurred innovation and growth that ushered in a rapidly evolving digital era. Telecommunication in the UK is governed by the Communications Act 2003. The national regulatory body is Ofcom which works with the Department for Digital, Culture, Media and Sports on the policy.
Telco businesses tend to be large concerns, as this sector usually requires quite a lot of investment. These companies are focused on internet service providers, cable and satellite businesses, and phone operators. The telecommunications sector itself includes the following:
- Telecom services and equipment
- Wireless and diversified communication
- Foreign, long-distance, and domestic services
Before registering your company, you need to figure out which of these areas you want to focus on. This can include becoming a service provider to big telco companies, providing network connectivity, broadband installation, supplying phone systems, etc. The market is competitive and writing up a business plan is the best way to start.
Depending on the nature of your business activity, you may want to operate as a sole trader or Limited Liability Partnership (LLP). However, if you want to go big, consider registering as a limited company instead. Another option to explore is to get a franchise from an existing big telco company.
Business solution firms such as 3E Accounting can help you figure out how much start-up capital you may need. You will need to open a bank account and sort out e-payment gateways and get a website and domain name. Another consideration is to look into renting serviced offices.
In the UK, having a telco business generally does not require a specific licence. All ECNs (Electronic Communications Networks) and ECSs (Electronic Communications Network providers) have general authority to carry out their business. Specific licenses may be needed for some specific activity, such as satellite operators, etc. It’s best to check with Ofcom before proceeding with such activities. You may also need other approvals such as permission to process data, vehicle operator licence, license to display your signboard, etc.
These basics touch upon how to set up a telecommunications business in the UK. If you need assistance or simply have queries, get in touch with us. 3E Accounting offers competitive company formation packages and innovative business solutions for all types of entrepreneurial concerns. Our team of professionals will work with you to formulate a solution that’s just right for your business needs. Contact 3E Accounting today for cutting edge and innovative business solutions.