
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
06/10/2025
France T l visions, France's leading broadcaster, has received the 2025 EBU ...
04/09/2025
Monumental Sports & Entertainment (MSE), in collaboration with Dalet, has been a...
02/07/2025
Hege Wik and Odin appear in FOLKTALES by Heidi Ewing and Rachel Grady, an official selection of the 2025 Sundance Film Festival. Courtesy of Sundance Institut...
02/07/2025
(Stephen Lovekin/Shutterstock for Sundance Film Festival)
By Patty Consolazio
This one's for any person who's ever felt put down, left out, marginaliz...
02/07/2025
Calrec expands ecosystem at NAB 2025 giving broadcasters access to dynamic workflows and ultimate flexibility Helping broadcasters meet the shifting needs of me...
02/07/2025
NEW YORK Paramount Global has agreed to pay $16 million to settle a lawsuit by President Donald Trump, ending a long-running legal saga that could clear the way...
02/07/2025
WASHINGTON The Federal Communications Commission has approved the transfer of licenses for five TV stations from Sinclair to Rincon Broadcasting, which announce...
02/07/2025
As the media industry faces an uncertain business climate and rapidly changing consumer habits, TV Tech's most popular stories from the first six months of ...
02/07/2025
PORTSMOUTH, N.H. New data shows that U.S. homes now own an average of two smart TVs, with Samsung and LG dominating the market but Roku and FireTV continue to g...
02/07/2025
LOS ANGELES Funds managed by Oaktree Capital Management have acquired FilmRise, an independent digital streaming content distributor, and merged it with Shout! ...
02/07/2025
WASHINGTON The Advanced Television Systems Committee named Luiz Fausto vice president of standards development, succeeding ATSC vice president Jerry Whitaker, w...
02/07/2025
Boston Conservatory and the Sphinx Organization Join Forces to Make Classical Ed...
02/07/2025
02 Jul 2025
VEON Raises USD 200 Million in Private Bond Placement Dubai, July 1, 2025: VEON Ltd. (Nasdaq: VEON), a global digital operator ( VEON ), announces ...
02/07/2025
Brand new factual series follows mechanic and self-taught engineer Dom Chinea as he makes the move of his life to the far west of Cornwall
UKTV today announces...
02/07/2025
Progressive realism: Aurora on taking up the broadcast reins for World RX alongs...
02/07/2025
Great speed: New host broadcaster Aurora on getting the World RX 2025 season pro...
02/07/2025
Seat of its pants: Aurora boxes clever and looks ahead for the FIA as new host b...
02/07/2025
UEFA Women's Euro 2025: EBU, BBC Sport and Sunset Vine talk coverage plans, ...
02/07/2025
UEFA Women's Euro 2025: Women's Super League launches new content series...
02/07/2025
UEFA Women's Euro 2025: Ignite puts fans and players front and centre with t...
02/07/2025
Storytelling in the Live Game Broadcast: ESPN Director Jimmy Platt Breaks Down t...
02/07/2025
CONCACAF's Miguel Angel Garcia on the Gold Cup's Enhanced 2025 Productio...
02/07/2025
Rohde & Schwarz acquires ZES ZIMMER Electronic Systems GmbH and expands its T&M ...
02/07/2025
Wuppertal July 2, 2025
Riedel Communications Launches RefSuite Ecosystem for S...
02/07/2025
Andrew will serve as Chair of ABC alongside his role at NED, APL Media, where he supports the executive team with strategic insight and global expansion plans. ...
02/07/2025
Black Forest Labs, one of the world's leading AI research labs, just changed the game for image generation.
The lab's FLUX.1 image models have earned g...
01/07/2025
The launch of Code of Silence, coupled with the Britains Got Talent semi final, gave ITV its best Sunday night of 2025.
The first episode of the new crime dr...
01/07/2025
ITV and Mammoth Screen have announced the start of filming for Betrayal, a gripp...
01/07/2025
L3Harris Technologies has delivered its second Bombardier Global 6500 missionize...
01/07/2025
MELBOURNE, Fla., July 1, 2025 - L3Harris Technologies (NYSE: LHX) will release its second quarter 2025 financial results before the market opens on Thursday, Ju...
01/07/2025
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
01/07/2025
WASHINGTON The Federal Communications Commission has rejected license challenges to three full-power Baltimore TV stations, renewing the licenses for Chesapeake...
01/07/2025
Dalet has released a new update to its Dalet Flex media workflow platform, introducing powerful new capabilities to its flagship platform....
01/07/2025
NEWARK, N.J. With the FIFA Club World Cup final rapidly approaching and the start of the 2026 FIFA World Cup now less than a year away, interest in soccer in th...
01/07/2025
COW Job Listing: Laser Engraved Logo
Brie Clayton July 1, 2025
0 Comments
Laser engraved logo
July 1, 2025Steffie Beltt's Mi Amor Music Video Cr...
01/07/2025
LeGrow.Studio Builds Broadcast Hub for ePro League
Brie Clayton July 1, 2025
0 Comments
TEM Constellation HD and BlackmagicURSA Broadcast G2 drive liv...
01/07/2025
Beeble launches SwitchLight 2.0, bringing AI-powered relighting to any footage
Brie Clayton July 1, 2025
0 Comments
New AI model delivers full-scene p...
01/07/2025
Steffie Beltt's Mi Amor Music Video Created with Blackmagic Design
Brie Clayton July 1, 2025
0 Comments
Blackmagic PYXIS 6K digital film camera...
01/07/2025
WASHINGTON The Federal Communications Commission's Enforcement and Media Bureaus have entered into a consent decree with Sinclair to resolve a variety of in...
01/07/2025
DENVER Low-power television (LPTV) station owners looking to navigate the complexities of selling their assets in todays dynamic media environment are invited t...
01/07/2025
NASA announced today that live programming from its NASA+ channel will be available on Netflix starting sometime this summer....
01/07/2025
WASHINGTON Federal Communications Commission Chair Brendan Carr has appointed Katie McAuliffe to serve as policy advisor in his office....
01/07/2025
MOUNTAIN VIEW, Calif. Alphabet's GFiber, the broadband provider formerly known as Google Fiber, has announced that it recently worked with Nokia to demonstr...
01/07/2025
NEW YORK, N.Y. DoubleVerify (DV) has announced the launch of DV Authentic Attention for Social. The product will first launch with Snap, the owner of Snapchat....
01/07/2025
WASHINGTON The Federal Communications Commission has rejected license challenges to three full-power Baltimore TV stations and agreed to renew the license for C...
01/07/2025
Compact new converter lets users capture live NDI and streaming sources into software over a USB interface
Video interface and IP workflow innovator Magewell ...
01/07/2025
Disguise, the award-winning tech company driving visuals for Broadway and West End hits including Redwood, Stranger Things: The First Shadow and Disney's Fr...
01/07/2025
Vocal-processing plug-in joins NOIZ Hub series
Launched in 2024, KIT Plugins' NOIZ Hub series was created with the aim of providing a range of professio...
01/07/2025
New self-paced learning programme announced
Mastering.com have announced the availability of a new online course designed to cover the fundamentals of maste...
01/07/2025
Historic appointment ushers in unified leadership for WRAL-TV, New Media, and Digital Solutions
RALEIGH, N.C. - 6-27-25 - Capitol Broadcasting Company is prou...