GSMA Warns Internet Value Chain Growth to Stall Unless Market Imbalances Addressed
16/05/2022
16 May, London: A new GSMA report warns market imbalances between network operators and online services providers may put global growth prospects at risk across multiple sectors of the internet-based economy. Policymakers, the report urges, must consider the interdependence of online services and other growth sectors on the underlying infrastructure investment.
The GSMA 2022 Internet Value Chain Report reveals factors including asymmetric regulation and restrictions, sector-specific taxes, and spectrum costs are squeezing the business models of infrastructure providers whilst allowing Big Tech to thrive.
Telco squeeze
The study finds that revenues across the internet value chain nearly doubled in five years, from $3.3 trillion in 2015 to $6.7 trillion in 2020. Much of this growth comes from online services; they saw a 19% increase in revenue per annum in 2020.
Paid-for online services will soon exceed $1trillion in revenues, driving huge capacity demand on global networks.
With an annual growth rate of 7.5%, the number of users being connected to the internet globally shows no sign of slowing.
Traffic per user grew at 27% per year, with almost 80% of that being driven by video traffic.
Yet the return on investment in infrastructure for network operators was far lower, between 6% and 11%. The report highlighted average sub-10% returns on capital as a concern due to pressure on telecom operators to keep investing CAPEX at rates of up to 20% of revenue.
The GSMA's Chairman Jos Mar a lvarez-Pallete said, The internet connects 4.6 billion people and drives the global economy. It is transforming business models, unlocking new opportunities, and uplifting communities across the world. But as some sectors in the internet value chain thrive, the demands of investing in the infrastructure those sectors rely on for growth are squeezing network operators. We welcome the growing recognition of this issue by policymakers, and as the internet-based economy expands across all sectors over the next decade.
The report notes that counterproductive taxation on infrastructure, cumbersome regulatory requirements, and other value-eroding factors can reduce incentives for infrastructure investment. It encourages policymakers to consider the full landscape of taxation and regulation, ensuring that companies investing in infrastructure are incentivised to build and upgrade the networks that underpin online services.
Download the 2022 Internet Value Chain report.
-ENDS-
About GSMA
The GSMA is a global organisation unifying the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change. Our vision is to unlock the full power of connectivity so that people, industry, and society thrive. Representing mobile operators and organisations across the mobile ecosystem and adjacent industries, the GSMA delivers for its members across three broad pillars: Connectivity for Good, Industry Services and Solutions, and Outreach. This activity includes advancing policy, tackling today's biggest societal challenges, underpinning the technology and interoperability that make mobile work, and providing the world's largest platform to convene the mobile ecosystem at the MWC and M360 series of events.
We invite you to find out more at gsma.com
Media Contacts
For the GSMA
GSMA Press Office
pressoffice@gsma.com
Like what you read? Share.
LINK: | https://www.gsma.com/newsroom/press-release/gsma-warns-internet-value-... |
See more stories from gsma |
Europe Stories
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
18/03/2024
USC Basketball Star Juju Watkins on Fashion, Film, Friendship Bracelets, and More
Listeners turn to Spotify to connect with their favorites-from artists and album...
18/03/2024
Young professionals successfully complete vocational training at SGL's Meitingen site
Seven young professionals completed their vocational training at SGL Carbon in M...
18/03/2024
Vintage Allure
Released this past January, the music video for Ariana Grande's yes, and? brings a modern approach to vintage allure. The video was directed by Christian ...
18/03/2024
ST Engineering iDirect Unveils Intuition at SATELLITE 2024 Conference and Exhibition
Global satellite communications leader gives market a first look at its next-gen...
18/03/2024
Box to Box Films shares with MediaSilo
Box to Box Films Shares with MediaSilo Amy and Drive to Survive producer updates collaborators simply and securely Boston, MA, March 18, 2024 - Box to Box Fi...
18/03/2024
Logging and reviewing: Moving towards a sustainable workflow
Jane Sung, COO at Cinedeck, explains how broadcasters and content production companies can achieve the goal of moving towards creating a more sustainable, effic...
18/03/2024
Altice Media sold to French shipping tycoon for 1.55 billion
The deal includes BFM TV, one of the country's largest 24-hour news channels, as well as documentary channel RMC D couverte, and RMC Story By Jenny Priestl...
18/03/2024
Meet the CEO and founder
By TVBEurope Staff Published: March 18, 2024 Nick Franco tells TVBEurope how he went from being a master plasterer and refurbishing the ornate plasterwork ...
18/03/2024
Banglalink Gets Unified Licence to Deliver Superior Digital Services in Bangladesh
18 Mar 2024 Banglalink Gets Unified Licence to Deliver Superior Digital Service...
18/03/2024
Final sprint in the AS4 market communication
Final Sprint in the AS4 Market Communication: All Arvato Systems Customers Are Ready to Go Customers for market communication AS4-ready Arvato Systems is now...
18/03/2024
Thales to modernize Montreal Mtro blue Line,improving passengers' punctuality and train reliability
Facebook Twitter LinkedIn Following a call for tenders, the Soci t de tra...
18/03/2024
Cyberani and Thales enter a strategic alliance to strengthen the Kingdom's cybersecurity
Facebook Twitter LinkedIn Mr. Saeed Al Saeed, CEO of Cyberani, and Mr. Pie...
18/03/2024
Thales to equip Cibao International Airport in Dominican Republic with new Air Traffic Control Radar System
Facebook Twitter LinkedIn Instituto Dominicano de Aviaci n Civil (IDAC) se...
15/03/2024
Connecting and training Sudanese journalists-in-exile
To help empower Sudanese journalists living in exile amidst the ongoing conflict in their homeland, Thomson trainers have been delivering workshops designed to ...
15/03/2024
Meet the director of channel development
By TVBEurope Staff Published: March 15, 2024 Updated: March 18, 2024 Jenny Isaksson, director channel development at Vizrt, tells TVBEurope why she enjoy...
15/03/2024
Navigating the Future: Humanizing AI and Connecting Everything - Insights from MWC 2024
This year's annual telecoms jamboree in Barcelona attracted a record breakin...
15/03/2024
Pete Distad Named CEO of New Sports Streaming Service
Pete Distad Named CEO of New Sports Streaming Service Former Apple and Hulu Executive to Lead Joint Venture from ESPN, FOX and Warner Bros. Discovery March 15...
15/03/2024
Celebrate the Best of Irish Culture with RT this St Patrick's Weekend
The Late Late Show hosts a world record attempt for the largest c il band performance Irish weekend sporting action from Six Nations to Allianz League Dancin...
15/03/2024
Post-quantum cryptography: six French cyber players join forces to design the secure communication networks of tomorrow
Facebook Twitter LinkedIn The RESQUE consortium brings together six French...
14/03/2024
Women Making History, Part 3
The Women Making History interview series continues, with Panavision President and CEO Kim Snyder steering the conversation toward mentorship. Here, the partici...
14/03/2024
Spilling the tea: The challenges of live music for television
Ciaran Doran reports on a recent RTS Technology Centre event that heard about the challenge of getting sound on live TV events just right, including dealing wit...
14/03/2024
Case study: How post production house Blazing Griffin keeps complex file movement simple
Blazing Griffins technical operations manager Paul Martin explains how the compa...
14/03/2024
Meet the TPN ambassador
By TVBEurope Staff Published: March 14, 2024 Updated: March 15, 2024 Stephen Stewart, former network director at Channel 4, tells TVBEurope about his cur...
14/03/2024
Bitmovin and Yospace launch live streaming partnership for world-class advertising experience
Bitmovin, a leading provider of video streaming infrastructure, today announces ...
14/03/2024
VEON appoints PwC as 2023 auditors, provides updates on reporting timelines
14 Mar 2024 VEON appoints PwC as 2023 auditors, provides updates on reporting timelines Amsterdam, Netherlands, 14 March 2024, 17:00 CET: VEON Ltd. (Nasdaq: VE...
14/03/2024
Breaking Boundaries: Cisco and Telenor Elevate Collaboration to Champion Inclusivity and Sustainability
8 minute read Share alt=Alternative descriptive text class=lazyload main ...
14/03/2024
Cinegy Captures More with Cinegy Capture
Cinegy Capture 24.1 SL6031, NAB Show, Las Vegas, 14-17 April 2024: Cinegy, the premier provider of broadcast software technology, has added yet more power and ...
14/03/2024
Thales Alenia Space will develop the radar instrument for ESA's 10th Earth Explorer Harmony exciting new mission
Facebook Twitter LinkedIn Thales Alenia Space has been selected by ESA to ...
14/03/2024
Shaping the future of ATC: Rohde & Schwarz at Airspace World 2024
Shaping the future of ATC: Rohde & Schwarz at Airspace World 2024 Rohde & Schwarz is actively shaping the future of air traffic control operations. At Airspace...
13/03/2024
Music Videos Rolling Out in Beta to Premium Spotify Users Across Select Markets
In the early neon-infused '80s, music videos burst onto TV screens, turning some of the most beloved songs into visual experiences that redefined the way fa...
13/03/2024
The Making of Ferrari
I like to work with directors that have a real distinct sense for what they want out of their film, says Erik Messerschmidt, ASC. This was certainly the case w...
13/03/2024
Brightcove adds web-based video editing capabilities to streaming technology platform
The update enables users to repurpose existing video content by editing recordin...
13/03/2024
Water, water everywhere
Vine FX blends practical and CGI elements for ITVs After the Flood, crafting immersive world-building crucial to the post-disaster thrillers authenticity, write...
13/03/2024
Slovak government proposals threaten media independence
Slovak government proposals threaten media independence...
13/03/2024
EBU welcomes the European Parliament's vote on the AI Act
EBU welcomes the European Parliament's vote on the AI Act...
13/03/2024
Coalition calls for effective implementation as the Parliament adopts the European Media Freedom Act
Coalition calls for effective implementation as the Parliament adopts the Europe...
13/03/2024
Arrow Electronics and Schneider Electric Collaborate to Deliver Sustainable, Advanced Infrastructure Solutions to the Channel
Home News & Press Releases Spokespeople Assets Blog Contact us ...
13/03/2024
IEC welcomes KATS as first funding partner for Global Impact Fund
IEC's Global Impact Fund (IEC-GIF) took a step further in advancing the vision of a safer, more efficient world today with the signing of its first funding ...
13/03/2024
Harmonic to Showcase Fiber-Made-Simple Solutions at FTTH Conference 2024
SAN JOSE, Calif. - March 13, 2024 - Harmonic (NASDAQ: HLIT) today announced the company will showcase its versatile solutions for high-speed fiber broadband ser...
13/03/2024
Rodeo FX adds colour offering with Baselight
Creative company Rodeo FX opens new colour suite in its Toronto studio and welcomes Ana Escorse as senior colourist Rodeo FX, known for providing high-end VFX,...
13/03/2024
Cricket Australia Partners with Dalet for Groundbreaking Fan Experience
Dalet, a leading technology and service provider for media-rich organizations, today announced that Cricket Australia (CA) has chosen Dalet Flex to increase fan...
13/03/2024
2024-03-13
Founded in 2008, Symbiosis has been collecting, banking, and planting seeds from mother trees of various Brazilian native species since 2010. The mother tree r...
13/03/2024
RT SHORT STORY COMPETITION 2024 OPEN FOR ENTRIES
TELL US YOUR (SHORT) STORIES The 2024 RT Short Story Competition is now open for entries. The RT Short Story Competition was set up in 1986 to honour wr...
13/03/2024
Thales Partners with Neural Labs to Support AI-Powered Smart Cities
Facebook Twitter LinkedIn Partnership spanning two decades expands to incorporate cloud licensing SaaS capabilities will enable Neural Labs to deploy an...
13/03/2024
Rohde & Schwarz hosts next edition of popular Oscilloscope Days event in April 2024
Rohde & Schwarz hosts next edition of popular Oscilloscope Days event in April 2...
12/03/2024
UKTV Ventures partners with Legacy of Lives in 1million airtime-for-equity deal
12th March 2024 - Award-winning broadcaster UKTV has today announced it has invested in the UKs first independent funeral-planning service, Legacy of Lives, usi...
12/03/2024
Five Years of Spotify in India: A Look Back at Our Greatest Hits
February marked Spotify's fifth year in India, and since our debut, we've focused on lifting up the country's creator community, localizing content ...
12/03/2024
Total Show Pro adopts Optocore solution for LP's Yucatn arena show
events Youre reading: Total Show Pro adopts Optocore solution for LP's Yucat n arena show Sound engineer Victor Baeza on a mission to convert Mexica...
12/03/2024
Women in the Digital Economy Fund: USAID, the Bill & Melinda Gates Foundation, and Partners Launch WiDEF
NEW YORK, MARCH 12, 2024 - The Women in the Digital Economy Fund (WiDEF), a five...