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Mobile Network Operators' Crucial Role in Infrastructure Investments

A new report from GSMA in collaboration with Kearney highlights that mobile network operators are responsible for a staggering 85% of total investments made into mobile internet infrastructure worldwide. This pivotal role underscores their significance in financing the networks that support the modern digital economy.

Published amid the Mobile World Congress (MWC) in Barcelona, the leading event for mobile technologies, the report titled "Mobile Infrastructure Investment Landscape" reveals that annual investments in mobile internet infrastructure—excluding end devices—total approximately $127 billion, with mobile operators contributing $109 billion of this sum. This substantial investment is made even more remarkable given that mobile operators derive lesser economic benefits than other players in the digital ecosystem.

In fact, the contribution of mobile network operators surpasses the investments made by other investor groups, such as cloud service providers and content and application providers (CAPs). John Giusti, GSMA's Chief Regulatory Officer, emphasized that mobile network operators are fundamental to the internet economy, financing the majority of the infrastructure essential for modern digital lives. He stated, "While other entities invest in select segments of global network infrastructure, their contributions pale in comparison to what mobile operators spend to build and maintain the networks that enable everything from online banking to remote work and digital entertainment."

Call for Policy Action

The timing of this report is crucial as governments worldwide endeavor to enhance digital connectivity and foster economic growth through advanced networks, including 5G and future generations of mobile technology. The findings illustrate a landscape of investments where mobile networks are indispensable for digital advancement. It indicates that:

• - Infrastructure investments require an appropriate legal environment.
• - Core and access networks demand significantly higher investments compared to backbone infrastructure.

To support further network development and innovation, GSMA urges governments to develop forward-looking regulatory frameworks that promote investments in mobile infrastructure, streamline spectrum policies, and create a fair and sustainable financial environment for operators.

The report further underscores the necessity for political measures that create a positive investment landscape for mobile network operators, which is deemed essential for realizing the full potential of the digital economy.

For complete details on the report, readers are encouraged to follow this link.

Through this report, GSMA aims to spark dialogue and spurred action from policymakers, emphasizing that the dynamism of the digital economy depends largely on the continued support for mobile network operators—who are, without a doubt, the backbone of the connectivity required for a thriving digital landscape.