A GSMA Report Highlights the Importance of Mobile Networks for Global Digital Development
Mobile network operators (MNOs) are responsible for 85% of the total investment in mobile internet connectivity infrastructure worldwide, according to a new report published by GSMA and consulting firm Kearney. The study, presented at MWC Barcelona, the world’s leading mobile technology event, underscores the crucial role of operators in financing the networks that underpin modern digital economies.
The report notes that annual investment in mobile internet infrastructure (excluding end-user devices) amounts to $127 billion, of which mobile operators contribute $109 billion. Despite this significant investment, operators see lower economic returns compared to other players in the digital ecosystem, such as cloud service providers and content and application developers.
The Key Role of Mobile Networks in the Digital Economy
The report highlights how mobile networks are critical infrastructure for global digital transformation. These networks connect billions of people to essential services such as banking, education, and entertainment, while also driving economic growth in sectors that rely on robust connectivity.
John Giusti, Chief Regulatory Officer of the GSMA, stated, “This report makes it clear that mobile network operators are the backbone of the digital economy, financing the majority of the infrastructure that enables modern digital life. While other players invest in certain parts of the connectivity infrastructure, their contributions are a fraction of what operators spend to build and maintain the networks that make remote work, online banking, and digital entertainment possible. If governments want to unlock the full potential of their digital economies, they must prioritize policies that create a positive investment environment for operators.”
A Call to Political Action
The report comes at a crucial time, as governments around the world seek to expand digital connectivity and foster economic growth through advanced networks, including 5G and future generations of mobile technology. Among the key findings of the study are:
- Mobile networks are essential for digital progress: From e-commerce to smart cities and healthcare, nearly every industry relies on mobile infrastructure.
- Investment in infrastructure requires a suitable regulatory environment: Government policies must ensure market conditions that encourage private investment in connectivity infrastructure.
- Access and core networks require significantly higher investments than transmission infrastructure: Investment in access infrastructure is up to 19 times greater than in transmission networks, reinforcing the need for support for mobile operators.
To ensure the continued expansion of networks and innovation in the sector, GSMA urges governments to adopt regulatory frameworks that promote investment in mobile infrastructure, streamline spectrum policies, and create a sustainable financial environment for operators.
Mobile Networks as the Foundation of the Digital Economy
The report emphasizes that, despite the limited investments from other players in the connectivity ecosystem, such as content and cloud providers in transmission networks and CDNs, these contributions cannot replace the need for substantial investment in infrastructure by mobile operators. Access and core networks, fully funded by operators, are essential for a functional and efficient internet that meets the needs of consumers and businesses worldwide.
As the industry gathers at MWC Barcelona, this study reinforces the need for a collaborative approach to infrastructure development, ensuring that mobile operators operate in favorable conditions to continue investing in networks that drive economic growth and digital inclusion.
For more information and access to the full report, visit: GSMA Mobile Infrastructure Investment Landscape.