Telecoms body tasks politicians on Internet market as value chain hits $6.7tr | The Guardian Nigeria News - Nigeria and World News

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The Global System for Mobile telecommunications Association (GSMA) has warned that market imbalances between network operators and online services providers could stall growth in several sectors of the internet-based economy, and called on politicians to urgently address the issue.

In the GSMA 2022 Internet Value Chain report, the trade association noted 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”.

GSMA chairman, Jose Maria Alvarez-Pallete, said the association welcomes the “growing recognition of this issue by policymakers, and as the Internet-based economy expands across all sectors over the next decade.” The study found revenue across the Internet value chain doubled in five years, from $3.3 trillion in 2015 to $6.7 trillion in 2020. The GSMA noted much of this growth comes from online services, revenue from which increased 19 per cent per year in 2020.

The GSMA noted operators are receiving less than 10 per cent returns on capital because of pressure to invest up to 20 per cent of revenue in capex.

 

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