Mobile Network Operators (MNOs) make 85 per cent of the total investment in mobile Internet connectivity infrastructure globally, playing the ‘keystone’ role in funding the networks that underpin modern digital economies worldwide.
This was revealed by the GSMA and global management consulting firm, Kearney.
They revealed this in a report unveiled at the ongoing Mobile World Congress (MWC) in Barcelona, Spain, on Wednesday. The report demonstrated that with yearly investments in mobile Internet infrastructure (excluding end-user devices) reaching $127 billion, MNOs alone contribute $109 billion.
The report noted that mobile operators made these investments despite deriving less economic benefit than other digital ecosystem players from this critical infrastructure. For example, the amount contributed by MNOs far exceeds the connectivity investments made by other investors such as cloud service providers and content and application providers (CAPs).
The report underscored the essential role of mobile networks in building critical infrastructure, which enables global digital transformation, connecting billions of people to everything from banking and education to entertainment services and supporting the economic growth of industries that depend on robust connectivity.
Chief Regulatory Officer of the GSMA, John Giusti, said: “This report makes it clear; 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.
“This study demonstrated 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.”
The report comes at a crucial moment when governments worldwide are seeking to expand digital connectivity and foster economic growth through advanced networks, including 5G and future generations of mobile technology.
The findings paint a picture of the investment landscape, which revealed that mobile networks are indispensable to digital progress; infrastructure investment requires the right regulatory environment and that core and access networks demand significantly higher investment than backbone infrastructure.
Meanwhile, MTN is hoping to move more of its 290 million subscribers from voice to data. Already, checks showed that about half of this number uses data.
MTN Group President and CEO, Ralph Mupita, speaking at the MWC, said it means the other half remains “stuck” in the voice era.
Mupita believed the telco, as well as other mobile operators on the continent, have “a lot” of work ahead to take the people of Africa forward through digital technologies.
“We’re a company that’s moved forward in embracing the technologies and enabling people, who previously did not have any financial services to now benefit from…the dignity of being able to transact, send money and be able to trade and drive micro e-commerce businesses. We now have over 60 million subscribers actively using our mobile money solutions.”
Mupita noted the African continent’s current position highlights its potential and the growth it must still achieve.
“We are still living in a world where Internet usage is at about 30 per cent. The coverage gap is not an issue anymore, but the continent still suffers from the issue of the usage gap. Over the next five years, it’s anticipated that Internet usage will move for the one-and-a-half billion people on the continent, from 30 per cent to 40 per cent, while smartphone penetration is expected to accelerate as smartphones become more affordable and more Africans use the Internet regularly.
“We’re seeing an explosion of data traffic and having to invest in our networks to carry the capacity that comes with more Africans using the Internet.
We also anticipate that we’ll see another 250 million Africans, over the next five years, being attached to networks and being able to live more empowered lives.”
(The Guardian)
