Double-Digit Internet Value Chain Growth at Risk if Infrastructure Investors Cannot Realise Meaningful Returns
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.
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
07/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/04/2026
Frequency, the engine behind many of the world's leading streaming television channels, at NAB 2026 will be launching new Studio services to help content ow...
07/04/2026
Ikegami USA has chosen NAB 2026 in Las Vegas as the launch platform for new additions to its range of broadcast-quality television production equipment. These w...
07/04/2026
April 19, 2026, Las Vegas Kiloview, an innovative provider of AV-over-IP technologies, will showcase its latest broadcast IP solutions at NAB 2026, presenting...
07/04/2026
Bitmovin has announced support for Server-Guided Ad Insertion (SGAI) across its playback products using HLS interstitials, enabling more advanced ad-supported s...
07/04/2026
Synamedia is unveiling AI by Quortex at The NAB show, a just-in-time AI plugin framework that applies intelligence only when needed across video processing, dis...
07/04/2026
Cuez will showcase four additions to its cloud-based newsroom, rundown and automation platform at NAB Show 2026 (April 18 22, Las Vegas, Booth N1867):
Cuez ...
07/04/2026
CueScript to Showcase Innovations at NAB that Add Mobility Options, Ease Editing...
07/04/2026
Barix Extends Transport Options for Multi-Engine IP Encoder
Brie Clayton April 7, 2026
0 Comments
New for NAB, Barix adds SRT and RIST support to Mult...
07/04/2026
Elite Media Technologies Selects Interra Systems' BATON File-Based QC Soluti...
07/04/2026
Tightrope Media Systems to Debut Cablecast LiveBridge for Simultaneous Streaming...
07/04/2026
Cuez Brings Four New Innovations to NAB 2026: From Story-Centric Newsroom to Ope...
07/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/04/2026
Designed for synchronized multi-stream playback, low-latency delivery, and real-time analytics, MATCH introduces a unified viewing experience for sports broadca...
07/04/2026
Berklee Students to Honor George Martin with Performance of Original Scores The orchestra, led by associate professor Xander Rovang, will perform several work...
06/04/2026
Michigan legends bring a new voice to the broadcast as TNT Sports and CBS Sports...
06/04/2026
From high school sports all the way up to the major leagues, building high-quali...
06/04/2026
Quickplay, an AI company for the media and entertainment industry, has been accepted into the Advanced tier of the TwelveLabs Ecosystem Partner Program. Quickpl...
06/04/2026
Grass Valley has announced the Future Playmakers Program, a global initiative to...
06/04/2026
El l der de operaciones impulsa la producci n en estudio mientras encuentra insp...
06/04/2026
The ops leader helps lead the charge in studio for the Spanish-language broadcas...
06/04/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, includ...
06/04/2026
The National Hockey League (NHL), in partnership with Verizon and the New Jersey Devils, today announced the opening of the NHL Innovation Lab powered by Verizo...
06/04/2026
Rock League, a new professional curling league, has announced that ESPN+ will stream its inaugural 2026 season for fans in the United States. The first Rock Lea...
06/04/2026
Advanced Systems Group has announced the appointment of Andrea (Andy) Cummis as Vice President of Systems Design and Engineering. In this role, she will lead de...
06/04/2026
Backed by Bolt Ventures, the venture brings Bryson DeChambeau, Grant Horvat, and...
06/04/2026
With this environment we can start that collaboration even earlier because we ca...
06/04/2026
Like the immortal lives of vampires, some stories never really end. That's t...
06/04/2026
As podcasting continues to evolve, growth increasingly means building beyond aud...
06/04/2026
Multiband dynamics plug-in enhanced
California-based developer FSK Audio have released a significant update for their innovative multiband dynamics processo...
06/04/2026
Share official & user-created full-rig presets
IK Multimedia's latest TONEX update makes it possible for users of the popular amp and effects modelling ...
06/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
06/04/2026
Dalet Showcases Dalia Agentic AI and End-to-End Media Workflows at NAB Show 2026
Brie Clayton April 6, 2026
0 Comments
Dalet, a leading technology and...
06/04/2026
OpenDrives Shows Off Sports Expertise in Sports Business Hub located in NAB Show...
06/04/2026
Proton to Demonstrate 3D Application at NAB 2026
Brie Clayton April 6, 2026
0 Comments
Yet further creative potential unleashed through innovation in ...
06/04/2026
Autoscript Highlights Voice-Driven Prompting and PTZ Solutions at NAB 2026
Brie Clayton April 6, 2026
0 Comments
Experience Autoscript Voice, PTZ prom...
06/04/2026
Mediaproxy Highlights Significant Enhancements to its LogServer suite at NAB Sho...
06/04/2026
Wayne, N.J., April 6th, 2026 Phantom High-Speed announces the release of PCC 4...
06/04/2026
April 6th, 2026
TRIBECA STUDIOS AND LILLY ANNOUNCE WINNERS OF INAUGURAL VITAL...
06/04/2026
Back to All News
Netflix Expands Kids Entertainment Lineup With Playground App ...
05/04/2026
Tackles all reported bugs!
SoundBridge have just announced the launch of a new update that introduces a couple of minor changes to their remote collaboratio...
Double-Digit Internet Value Chain Growth at Risk if Infrastructure Investors Cannot Realise Meaningful Returns
