GSMA reports that the annual investment in mobile internet connectivity infrastructure, including end-user devices, has averaged $244 billion over the past five years (2019-2023).
This significant expenditure has led to a debate about who should bear the costs, with telecom operators arguing that Big Tech companies, including Meta, Google, Amazon, TikTok, Netflix, and Microsoft, should contribute to the financial burden of mobile internet infrastructure.
Telecom operators contend that since these companies generate substantial data traffic and revenue from mobile networks, they should share the investment required to sustain and expand the infrastructure. GSMA, while releasing the report on March 3 at the Mobile World Congress (MWC) 2025 in Barcelona, did not repeat its demand for cost-sharing with Big Tech.
Mobile network operators (MNOs) are the largest contributors, investing $109 billion, which accounts for 85 percent of non-end-user device investments and 45 percent of the total when including end-user devices. Consumers contribute significantly as well, spending $95 billion on end-user devices, while additional investments come from tower companies, other network operators, enterprises, and cloud infrastructure providers focusing on backbone infrastructure and content delivery networks (CDNs). The primary beneficiaries of this investment include end-user device manufacturers, receiving $112 billion, along with equipment suppliers, installation service providers, and governments licensing spectrum.
While MNOs dominate infrastructure spending, cloud providers and large content and application providers (CAPs) have been increasing their investment in backbone infrastructure and CDN development to enhance data transmission efficiency. However, their spending remains a fraction of what MNOs contribute. Despite improving backbone capacity, these investments necessitate even greater expenditures on core, backhaul, and access infrastructure.
Investment in access infrastructure is estimated to be 19 times higher than in backbone infrastructure, while core and backhaul investments are approximately eight times greater. CAPs primarily focus on backbone infrastructure, which, even when including investments by Tier 1 transit providers, accounts for only 2 percent of the total investment in mobile internet connectivity infrastructure. Within the end-user device segment, spending on smartphone connectivity components reaches $117 billion annually, making up 48 percent of the total value of mobile internet connectivity infrastructure.
The internet connectivity infrastructure investment, spanning fixed, mobile, and satellite networks, has averaged $462 billion annually between 2019 and 2023. This figure includes contributions from various stakeholders, with telecom operators’ spending covering only network-related capital expenditures, while cloud and satellite providers allocate only a portion of their investments to connectivity infrastructure.
Fixed infrastructure accounts for $212 billion, while mobile infrastructure represents $244 billion. Satellite-based internet services, despite experiencing a surge in investment, remain a minor segment, contributing only 1 percent of total spending. Though individual company investments fluctuate, the global network infrastructure capital expenditure has remained stable over the past decade.
End-user devices represent the largest investment segment at $117 billion, driven by the widespread adoption of smartphones, with an estimated 4-5 billion customers and approximately 1 billion devices shipped annually. This spending includes purchases made by consumers, enterprises, and governments and is attributed to end users, even when acquired through financing arrangements such as rental contracts.
The next largest investment segment is access infrastructure, receiving $87 billion, primarily fueled by MNOs’ investments in next-generation network rollout and capacity upgrades. Backbone and core & backhaul infrastructure receive relatively lower investments due to their economies of scale, lower unit costs, and longer component life cycles.
GSMA Intelligence has further broken down the $244 billion annual investment in mobile infrastructure by region. The Asia-Pacific region, including China, is the largest contributor, accounting for $117 billion. North America follows with $55 billion, while Europe contributes $38 billion. The Middle East and Africa invest $19 billion, and Latin America accounts for $15 billion.
The total investment in mobile internet connectivity infrastructure ($244 billion) is comparable to the $212 billion allocated to fixed internet connectivity infrastructure. When excluding end-user devices, the annual investment in mobile connectivity infrastructure stands at $127 billion, of which MNOs contribute 85 percent ($109 billion). In contrast, investment in fixed internet connectivity infrastructure is significantly higher, reaching $189 billion.
In addition to mobile and fixed infrastructure investments, spending on data center infrastructure, primarily for hosting rather than connectivity, amounts to $226 billion. CAPs contribute $106 billion annually, while other data center providers, including regional players and enterprise on-premises investments, add $120 billion.
Despite repeated demands from telecom operators for Big Tech companies to share the cost of mobile internet infrastructure, these companies have largely ignored the requests. GSMA and the telecom operator community continue to advocate for a more balanced financial model where major data-generating platforms contribute to sustaining the network infrastructure that enables their services.
Baburajan Kizhakedath
