#Spain #Barcelona #GSMA #Digital Economy #Mobile Operators

The Critical Role of Mobile Operators in Internet Connectivity Investment

In a groundbreaking report released by GSMA, it has been revealed that mobile network operators (MNOs) account for an impressive 85% of global investments in mobile internet connectivity infrastructure. This finding underlines the immense responsibility that these operators bear in not just maintaining, but also enhancing the backbone of modern digital economies worldwide.

As the Mobile World Congress (MWC) takes place in Barcelona, where leaders from across the mobile ecosystem convene, the report titled "Mobile Infrastructure Investment Landscape" highlights that annual investments in mobile internet infrastructure, excluding consumer-end devices, have reached a staggering $127 billion. Out of this amount, a whopping $109 billion is solely contributed by mobile operators.

Despite these significant investments, it's noteworthy that MNOs often reap fewer economic benefits from their contributions compared to other digital ecosystem players. For instance, the investments made by MNOs overshadow those from cloud service providers and content/application developers, which tend to pale in comparison. John Giusti, the GSMA's Chief Regulatory Officer, emphasizes this point, stating, "Mobile network operators are the backbone of the internet economy, as they fund the vast majority of the infrastructure that supports modern digital life. While others invest in certain parts of the global connectivity landscape, their contributions are merely a fraction of what MNOs invest in building and maintaining the networks that power everything from online banking to remote work and digital leisure."

A Call to Action for Policymakers

The report’s timing coincides with a pivotal moment when governments worldwide are seeking to expand digital connectivity and stimulate economic growth through advanced networks, especially with the implementation of 5G and future generations of mobile technologies. Among the multitude of findings, three key points stand out:
1. Mobile Networks are Essential for Digital Progress: The report illustrates that mobile networks are indispensable for driving forward digital transformation across various sectors.
2. Infrastructure Investments Require Adequate Regulatory Environment: To facilitate ongoing improvements and expansions, a conducive regulatory environment is vital for attracting further investments.
3. Higher Investments Required for Access and Core Networks: Foundations and access networks necessitate significantly higher funding compared to backbone infrastructure.

In response to these insights, the GSMA urgently calls on governments to adopt progressive regulatory frameworks that encourage investment in mobile infrastructure, streamline spectrum policies, and establish fair and sustainable financial environments for operators.

As the demand for digital interoperability and connectivity continues to grow, the investment landscape must evolve to meet these challenges. The GSMA's report advocates for a concerted push from governments to create policies that not only recognize the significant contributions of MNOs but also prioritize their role in future-proofing national and global economies.

For further information, access the complete report at GSMA’s official report. This comprehensive document provides valuable insights into the current state of mobile infrastructure investments and lays out a roadmap for enhancing connectivity worldwide.