European Union (EU) will need €475 billion in telecom market investment between 2026 and 2036 to match global connectivity leaders, according to GSMA Intelligence. While operators are expected to invest €270 billion under existing network upgrade plans, an additional €200 billion is required to accelerate 5G deployment, AI-ready infrastructure, resilient networks and nationwide digital connectivity.
Europe’s digital economy increasingly depends on mobile infrastructure. In 2025, mobile technologies generated €1.1 trillion in economic value across the EU, while mobile operators invested nearly €20 billion in network capital expenditure despite mounting financial pressure.
EU Mobile Networks Support Nearly 600 Million Connections
Europe’s mobile industry currently supports almost 600 million mobile connections, including 370 million unique mobile internet users, representing more than 80 percent of the region’s population.
The mobile ecosystem contributed approximately €1.1 trillion to the EU economy in 2025. Of this, €820 billion came from productivity gains enabled by mobile connectivity, while the direct contribution of the mobile ecosystem reached €200 billion.
The industry also directly employed 1.3 million people and generated €110 billion in tax contributions, underlining its strategic importance to Europe’s economy.
5G Adoption to Reach 88 Percent by 2030
GSMA Intelligence forecasts rapid growth in 5G adoption across Europe over the next five years.
By 2030, around 86 percent of EU residents are expected to subscribe to mobile internet services. At the same time, 88 percent of all mobile connections — equivalent to nearly 530 million connections — are projected to run on 5G, up sharply from 43 percent at the end of 2025.
The European Union has targeted 100 percent 5G population coverage by 2030 under its Digital Decade strategy. However, GSMA Intelligence notes that many European countries continue to lag behind leading 5G markets despite substantial investment.
Operators Have Already Invested €141 Billion Since 2021
European mobile operators have already invested €141 billion since 2021, exceeding the minimum €60 billion mobile investment estimated in an earlier WIK Consult study for achieving Digital Decade objectives.
The study estimated an additional €115 billion would be required for fixed broadband infrastructure, bringing the overall connectivity investment requirement to around €200 billion.
Despite this spending, Europe has yet to fully achieve its Digital Decade connectivity goals, indicating that additional investment and policy reforms are needed.
Spectrum Costs Have Nearly Tripled
GSMA highlights rising regulatory costs.
Spectrum fees as a share of operator revenue increased from 3 percent in 2014 to 8 percent in 2024, meaning the relative cost of acquiring spectrum has almost tripled over the past decade, placing additional financial pressure on telecom operators.
Additional €200 Billion Needed for AI, Resilience and Transport Corridors
GSMA Intelligence estimates Europe requires approximately €200 billion beyond current investment plans to strengthen its digital infrastructure.
Around €104 billion will be required to extend 5G network coverage across transport corridors, including roads, railways and waterways.
Another €35 billion is needed to provide comprehensive 5G coverage across populated areas, including upgrades to radio access networks, deployment of 5G Standalone cores and satellite backhaul in rural regions.
Improving mobile network resilience will require approximately €38 billion, covering longer battery backup for base stations, satellite backhaul, generator deployment and stronger cybersecurity.
Building AI-ready mobile networks will require another €28 billion, enabling greater automation, improved energy efficiency, lower operating costs and new enterprise revenue opportunities.
Europe Targets Global Mobile Leadership
GSMA Intelligence projects that increasing total mobile investment to approximately €475 billion between 2026 and 2036 would raise Europe’s annual mobile capital expenditure to roughly €70 per connection, aligning the region with leading mobile markets in North America and East Asia.
The report concludes that while operators remain committed to network modernization, achieving Europe’s ambitions for 5G, AI, resilient digital infrastructure and global competitiveness will require regulatory reforms that improve the commercial case for long-term telecom investment.
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