Telecom Operators Account for 85 Percent of Mobile Internet Infrastructure Investment: GSMA Report

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The Mobile Industry body noted, “Mobile operators make these investments despite deriving less economic benefit than other ‘digital ecosystem players’ from this critical infrastructure.” The report cited an example, stating that the amount contributed by MNOs far exceeds the connectivity investments made by other groups of investors, such as cloud service providers and content and application providers (CAPs).

“Mobile network operators are the keystone of the internet economy, funding the vast majority of the infrastructure that enables modern digital life. Whilst others invest in select parts of the world’s connectivity infrastructure, their contributions are a fraction of what MNOs spend to build and maintain the networks that power everything from online banking to remote work and digital entertainment,” said John Giusti, Chief Regulatory Officer of the GSMA.

“This study demonstrates clearly that if governments wish to unlock the full potential of their digital economies, they must prioritise policies that create a positive investment environment for MNOs,” Giusti added.

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Investment by Cloud Providers

“Although MNOs are the largest group of investors in mobile internet connectivity infrastructure, large CAPs and cloud infrastructure providers have been increasing their direct investments into the backbone infrastructure to directly interconnect their data centres and build CDN infrastructure to deliver traffic directly to MNO core networks. However, this is only a fraction of what MNOs invest,” the GSMA report said.

Investments by MNOs

The report highlights that despite limited investment by other players in the connectivity ecosystem—such as cloud and content providers—in backbone and content delivery networks (CDNs), these investments do not replace the need for substantial mobile infrastructure investment by mobile network operators. The core and access networks, which are fully funded by MNOs, remain fundamental to a functioning, capable internet which serves the needs of consumers and businesses worldwide, fuelling growth across the broader digital ecosystem.

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Role of Governments

The report further emphasised that “governments should prioritise pro-investment policies to accelerate network expansion and strengthen digital economies.” To support continued network expansion and innovation, the GSMA urges governments to adopt forward-looking regulatory frameworks that encourage investment in mobile infrastructure, streamline spectrum policies, and create a fair and sustainable financial environment for operators, it said.