Mobile Operators Dominate Investment in Internet Connectivity Infrastructure, New GSMA Report Unveils
A recent report released by GSMA and global management consulting firm Kearney underscores the crucial role that Mobile Network Operators (MNOs) play in the investments related to mobile internet connectivity infrastructure around the globe. The report, titled 'Mobile Infrastructure Investment Landscape', reveals that a staggering 85% of the total investments in this sector come from MNOs. The findings were unveiled during MWC Barcelona, the premier global event focused on mobile technology.
The report highlights that the annual investments made in mobile internet infrastructure, excluding end-user devices, have surged to reach $127 billion. Out of this figure, MNOs account for $109 billion, significantly surpassing the investments made by other sectors, such as cloud service providers and content application providers (CAPs). This stark reality emphasizes a fundamental concern: mobile network operators are shouldering the bulk of the financial burden to maintain and expand the critical infrastructure that supports modern digital economies, even though they reap comparatively less economic benefit than their counterparts.
According to John Giusti, Chief Regulatory Officer at GSMA, the report clarifies the pivotal function of mobile network operators within the internet economy. He remarked, "Mobile network operators are the keystone of the internet economy, funding the vast majority of the infrastructure that enables modern digital life. While other entities invest in select components of the connectivity ecosystem, their contributions are merely a fraction of what MNOs commit to building and maintaining these essential networks. This study distinctly presents the necessity for governments to prioritize creating a favorable investment environment to unlock the full potential of their digital economies."
In light of these findings, the report calls upon global governments to reassess their approach towards digital connectivity, particularly as the demand for advanced networks like 5G continues to rise. Policymakers are urged to establish forward-thinking regulatory frameworks conducive to investment in mobile infrastructure. Such frameworks should aim to refine spectrum policies and foster a sustainable financial landscape for operators, all crucial elements for the ongoing development and enhancement of digital connectivity.
Furthermore, the need for further investment in both core and access networks is highlighted, as these require significantly more funding compared to backbone infrastructure. In view of the increasing reliance on robust mobile networks for various facets of daily life – from online banking to remote work and digital entertainment – the stakes have never been higher. As digital economies continue to expand, the emphasis on mobile operators as the backbone of this evolution cannot be overlooked.
In conclusion, the GSMA's report serves as a critical reminder of the indispensable role MNOs play in facilitating digital transformation across the globe. The data presented not only underscores their investment capabilities but also stresses the imperative for supportive governmental policies that can catalyze further advancements in connectivity infrastructure. For those interested in delving deeper into the insights provided by the report, a full version is accessible at the GSMA website, where it dissects the intricate dynamics of mobile infrastructure investing and its overarching impact on global economies.
The report highlights that the annual investments made in mobile internet infrastructure, excluding end-user devices, have surged to reach $127 billion. Out of this figure, MNOs account for $109 billion, significantly surpassing the investments made by other sectors, such as cloud service providers and content application providers (CAPs). This stark reality emphasizes a fundamental concern: mobile network operators are shouldering the bulk of the financial burden to maintain and expand the critical infrastructure that supports modern digital economies, even though they reap comparatively less economic benefit than their counterparts.
According to John Giusti, Chief Regulatory Officer at GSMA, the report clarifies the pivotal function of mobile network operators within the internet economy. He remarked, "Mobile network operators are the keystone of the internet economy, funding the vast majority of the infrastructure that enables modern digital life. While other entities invest in select components of the connectivity ecosystem, their contributions are merely a fraction of what MNOs commit to building and maintaining these essential networks. This study distinctly presents the necessity for governments to prioritize creating a favorable investment environment to unlock the full potential of their digital economies."
In light of these findings, the report calls upon global governments to reassess their approach towards digital connectivity, particularly as the demand for advanced networks like 5G continues to rise. Policymakers are urged to establish forward-thinking regulatory frameworks conducive to investment in mobile infrastructure. Such frameworks should aim to refine spectrum policies and foster a sustainable financial landscape for operators, all crucial elements for the ongoing development and enhancement of digital connectivity.
Furthermore, the need for further investment in both core and access networks is highlighted, as these require significantly more funding compared to backbone infrastructure. In view of the increasing reliance on robust mobile networks for various facets of daily life – from online banking to remote work and digital entertainment – the stakes have never been higher. As digital economies continue to expand, the emphasis on mobile operators as the backbone of this evolution cannot be overlooked.
In conclusion, the GSMA's report serves as a critical reminder of the indispensable role MNOs play in facilitating digital transformation across the globe. The data presented not only underscores their investment capabilities but also stresses the imperative for supportive governmental policies that can catalyze further advancements in connectivity infrastructure. For those interested in delving deeper into the insights provided by the report, a full version is accessible at the GSMA website, where it dissects the intricate dynamics of mobile infrastructure investing and its overarching impact on global economies.
Topics Telecommunications）
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