How much pay can IT contractors earn at a telco?

The competitive United Kingdom telecommunications market provides essential fixed and wireless services to around 70million people across the country.

At the core of this market are technically-skilled workers who keep projects moving. And as we move into the second half of 2024, several developments are shaping the industry within the UK.

Below, I explore the current state of the UK telecoms market and how much IT contractors can earn within a telecoms company (or ‘telco’ for short), writes Pendy Hou, delivery team leader at First Point Group.

Ring the changes – or not: Three UK and Vodafone merger under regulatory scrutiny

Currently, the biggest news story in the UK telecoms market revolves around the ongoing merger between Three UK and Vodafone. Although announced last year, recent uncertainty has arisen due to the Competitions and Markets Authority (CMA) commencing a second (‘Phase 2’) investigation, which an initial CMA probe (‘Phase 1’) found to be required.

This regulatory scrutiny has cast doubt on the Three-Vodafone merger's completion, impacting market dynamics.

Alerts by BT

In mid-June, an unimpressed BT issued a 40-page report in response to the merger, indicating that the merger of Three and Vodafone would create a dominant entity in the UK.

Of course, such a dominant player could have significant influence on day rates for contractors.

BT argues that the potential merger would possess 61% of the network capacity -- a level of control “unprecedented” in the UK and Western Europe, the telco warns.

Slower network rollouts = delayed recruitment activity

The first six months of 2024 didn’t start with the optimism which our recruitment agency predicted at the end of 2023, primarily because network rollouts were slower than expected at the start of this year.

However, from conversations with telecoms professionals, the next few months may continue at a similar pace, followed by an anticipated increase in recruitment activity in Q4 2024 and beyond. While the initial sluggishness may raise concerns, hope remains for a more robust market later in the year.

How much do telecos pay IT contractors?

For IT contractors, earning potential at a telco varies based on specialisation, experience, the organisation, and scope of the project.

Using our knowledge of the market, below is a breakdown of average IT contractor rates in the UK telecoms industry.

Software Engineer: £300–£600 per day
Software Architect: £500–£600 per day
Network Engineer: £350–£500 per day
Network Architect: £380–£500 per day
Test Engineer: £350–£400 per day
Test Lead / Manager: £400–£500 per day
Project Manager: £350–£400 per day
Programme Manager: £400–£450 per day

The role of network architects

There’s a noticeable demand right now for freelance Network Architects.

As operators focus on deploying next-generation networks -- such as fibre broadband and 5G mobile services -- these Network Architects play a crucial role. Their expertise ensures efficient network design, scalability, and seamless connectivity for consumers and businesses across Britain.

High demand for sales roles

Despite challenges, certain areas within the UK telecoms market are experiencing high levels of recruitment activity, particularly in sales.

Telecoms companies seek Business Development Managers and Sales Directors to lay the groundwork for future growth. By positioning themselves strategically, these companies aim to capitalise on market recovery -- when it occurs.

Future of telecoms? A bit uncertain but certainly not dull

While the start of 2024 may have been cautious, the desire for both sales professionals and network experts remains strong.

Within the second half of 2024, recruitment activity is likely to pick up, although to what degree is a bit uncertain. Similarly, uncertainty will continue to emanate from the potential merger of Three UK and Vodafone – at least for a while yet, given that the CMA’s Phase 2 probe is reportedly expected to run until September 18th 2024.

However, with a potential hiring hiatus caused by general election 2024 now out of the way, there are grounds to hope that the prospects for IT contractors seeking engaging projects within the UK telecoms industry are good, especially with initiatives such as the UK already joining an international coalition to enhance communication network resilience and advance domestic next-gen telecom technology.