March 9, 2025
In the rapidly evolving digital landscape, telecommunications operators have emerged as the primary investors in mobile internet infrastructure, accounting for approximately 85% of total investments globally. This substantial financial commitment underscores their pivotal role in enhancing connectivity, deploying advanced technologies like 5G, and bridging the digital divide.
Telecom operators are leading the charge in building and maintaining the infrastructure that powers mobile internet services. Their investments encompass a wide range of components, including the construction of cell towers, deployment of fiber-optic cables, acquisition of spectrum licenses, and development of network technologies. These efforts are essential to meeting the escalating demand for high-speed, reliable mobile internet access.
For instance, Telstra has proactively upgraded its network infrastructure in Australia to accommodate increasing data consumption. Under the leadership of CEO Vicki Brady, the company has initiated projects such as the $1.6 billion ultra-fast fiber network, aiming to future-proof its services and ensure robust connectivity for its customers.
Despite their significant investments, telecom operators in regions like Europe face challenges that hinder the rapid deployment of advanced mobile internet infrastructure. The European telecom market is notably fragmented, with numerous operators competing within individual countries. This fragmentation leads to intense competition but often reduces revenues per operator, limiting the funds available for substantial infrastructure investments.
At the Mobile World Congress in Barcelona, industry leaders highlighted these challenges, emphasizing that Europe’s fragmented telecom market and stringent regulations have hindered investment in technologies such as 5G. The continent’s restrictive merger rules have prompted companies like Vodafone and Orange to seek growth opportunities outside Europe, particularly in regions like Africa and the Middle East, where regulatory environments may be more conducive to expansion.
Recognizing the critical importance of mobile internet infrastructure, various global initiatives have been launched to address connectivity gaps, especially in underserved regions. In Australia, the Mobile Black Spot Program aims to extend mobile coverage to rural and remote areas lacking reliable reception. Established in response to the 2011–12 Regional Telecommunications Review, the program has funded the construction of over 1,200 mobile base stations, significantly improving connectivity for communities, transport routes, and tourist destinations.
Similarly, in the United States, the Universal Service Fund (USF) has been instrumental in subsidizing telecommunications services to ensure that all Americans have access to essential communication services. The High-Cost program, a USF component, supports telecom operators deploying infrastructure in rural and high-cost areas, promoting universal service and bridging the digital divide.
As the demand for data-intensive services continues to surge, telecom operators advocate for a more equitable distribution of infrastructure investment responsibilities. In South Africa, the Association of Comms and Technology (ACT) has called on digital content and service providers to contribute to the costs of network infrastructure expansion. ACT CEO Nomvuyiso Batyi emphasized that over-the-top (OTT) platforms, such as video, audio, and messaging services, heavily rely on robust network infrastructure and should, therefore, participate in funding its development. This proposal aims to establish “fair share” arrangements, ensuring that all stakeholders benefiting from the infrastructure also contribute to its enhancement.
Telecom operators are exploring strategic consolidations to overcome investment challenges and achieve economies of scale. In the United Kingdom, the merger between Vodafone and Three UK, valued at £15 billion, has been approved by the Competition and Markets Authority. This merger creates the largest mobile operator in the UK, serving 29 million customers, and includes a commitment to invest £11 billion in a new 5G network. Such consolidations are expected to enhance the financial capacity of operators to invest in advanced infrastructure, thereby improving service quality and coverage.
Governments are also taking active roles in its development and protection, recognizing the strategic importance of telecom infrastructure. In November 2024, the French government nationalized Alcatel Submarine Networks (ASN), a leading manufacturer and installer of submarine telecom cables. This move underscores the critical role of undersea fiber-optic cables, which carry 99% of the world’s internet traffic, and reflects efforts to safeguard national interests in essential infrastructure.
Telecom operators’ substantial investments in mobile internet infrastructure are pivotal to supporting the digital economy and meeting consumers’ growing demand for high-speed connectivity. However, a collaborative approach involving regulators, digital service providers, and governments is essential to sustain and enhance these investments. Addressing regulatory challenges, fostering equitable investment contributions, and encouraging strategic partnerships will be crucial in building resilient and expansive mobile internet infrastructures that cater to the evolving needs of societies worldwide.
