More Investment in Advanced Forms of 5G Will Unlock New Use Cases and Monetization Opportunities in Europe's Mobile Economy

"Digital infrastructure has been at the heart of social and economic progress in Europe for the better part of the last three decades. Today, nearly half a billion people across Europe are connected to the mobile internet, predominantly through high-speed 4G and 5G networks," according to GSMA's annual report on Europe's mobile economy.

The report points out that "[m]obile technologies and services now generate around 5% of GDP across Europe, a contribution that amounts to almost €1.1 trillion of economic value added. 5G, in particular, is expected to benefit most sectors of the European economy, adding around €164 billion of economic value by 2030. However, achieving further growth beyond this will be challenging within the constraints of the current regulatory environment."

The GSMA importantly notes that "Europe is at a crossroads in the development of crucial digital infrastructure, with key network-performance and consumer adoption metrics showing that it is falling behind some of its global peers. This underlines the need for urgent action by the European Commission and other authorities to implement critical policy reforms to ensure that Europe's digital economy – underpinned by strong, sustained network innovation – can re-establish a leadership position in the global tech race by 2030."

Below are the key trends shaping Europe's mobile ecosystem:

• The focus shifts to 5G standalone and 5G-Advanced. "By the end of 2024, 5G accounted for 30% of mobile connections in Europe, equivalent to over 200 million connections. However, 5G has not yet materially altered mobile revenue growth, which remains low in most European markets. Shifting investment to more advanced forms of 5G, particularly 5G networks based on the standalone (SA) architecture, as well as 5G-Advanced, will be important to unlock new use cases and monetization opportunities. However, this investment will not occur automatically, and issues that limit the mobile sector's capacity to invest will need to be addressed first."
• GSMA Open Gateway gains traction. "As of December 2024, 67 operator groups had signed up to the GSMA Open Gateway initiative, accounting for 75% of mobile connections globally. The geographic breakdown of operator commitments indicates regions at par, above or below their established market share. Europe is a leading region, with committed operators representing more than 20% of GSMA Open Gateway commitments despite accounting for around only 10% of mobile connections. Many of the early API launches in the region have focused on fraud prevention and security, using SIM Swap and Number Verification APIs. These represent easy wins, given the ever-present risks from fraudsters and breaches for operators and their customers."
• Driving AI transformation responsibly. "European operators are leading the way in generative AI (genAI) adoption, with a strong emphasis on network optimization, security and enhanced customer service. Mobile operators are catalyzing genAI innovation through strategic partnerships, exemplified by Telefónica's collaborations with technology partners, as well as Deutsche Telekom's development of telecoms specific large language models (LLMs) with the Global Telco AI Alliance. To foster responsible AI, operators are prioritizing ethical AI practices to ensure fairness, protect users and reduce inequalities. The EU's AI Act sets regulatory standards for responsible AI, while the GSMA's Responsible AI Maturity Roadmap offers a framework for ethical AI use."
• Momentum builds behind aerial connectivity. "Terrestrial networks remain the primary form of connectivity, supported by the wide area coverage of wireless networks and the mass production and adoption of mobile devices. In recent years, however, technological advances in various satellite and other non-terrestrial networks (NTNs) have helped to overcome several limitations associated with aerial connectivity. Recent developments suggest that European authorities are taking steps to keep up with their global peers in the development and application of satellite connectivity, as a complement to terrestrial-based mobile connectivity services. Recent examples include the award of a contract to the SpaceRISE consortium to develop, deploy and operate the IRIS constellation, as well as the emergence of new players across the European satellite ecosystem."

Infographic: GSMA Intelligence

The GSMA also presents a list of recommended policy reforms that will lead to increased investments in digital infrastructure that "will not only be felt across the telecoms and technology sectors but across every other industry as well":

• Re-evaluate the existing regulatory framework that was conceived 20–30 years ago, and update the policy objectives and principles to match today’s market realities and challenges.
• Implement additional measures to ensure fairness in the internet value chain by defining an obligation on content and application providers (CAPs) to negotiate with internet service providers (ISPs) on the terms and conditions for IP data transport services, thereby making the negotiating parties subject to a dispute resolution process in the event that an agreement cannot be reached.
• Take a more long-term view on investment and innovation effects. The Commission needs to initiate a review of the EU Merger Regulation, which has not been reviewed for 20 years, in order to put more emphasis on the long-term investment viewpoint.
• Establish a pro-investment approach to EU spectrum policy, including the adoption of best practices to achieve a more predictable and harmonized approach to spectrum auction designs, licensing costs, the prolongation of licenses and the identification of future bands.
• Apply circular economy principles to network equipment and incorporate the EU taxonomy for green investment in electronic communication networks, based on robust metrics.

With respect to the mobile mobile industry's impact on the UN Sustainable Development Goals (SDGs), the report says the impact is "driven by the increased reach of mobile networks and growing take-up of mobile internet services. SDG 7: Affordable and Clean Energy, SDG 6: Clean Water and Sanitation and SDG 3: Good Health and Well-being) have seen the biggest improvement in mobile industry impact score, according to GSMA research."

What are your recommendations for how to unlock new use cases and monetization opportunities in Europe's mobile economy?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

5G Expected to Contribute $10 Billion to Africa's Economy by 2030

"Mobile connectivity is a key driver of digital transformation and socioeconomic growth in Sub-Saharan Africa," according to GSMA's annual report on the state of the Sub-Saharan Africa's mobile economy. The report points out that "Governments and businesses are increasingly using 4G and 5G networks alongside technologies such as AI and IoT to enhance productivity and service delivery. Despite growing demand for mobile, a significant usage gap persists. This underscores the need for efforts by operators to address the barriers to mobile internet adoption, such as device affordability, online safety and digital skills."

The report's key findings include:

• Persistent Usage Gap: Mobile internet penetration in Sub-Saharan Africa reached 27 percent by the end of 2023, yet a substantial usage gap of 60 percent remains. This gap represents millions who live within network coverage but face barriers such as device affordability, digital skills deficits, and concerns around online security. Globally, 3.1 billion people – 39 percent of the global population – are impacted by the usage gap. Sub-Saharan Africa is the least connected region, with the largest usage gap worldwide.
• Expanding 4G Coverage and Early 5G Growth: The region's 4G adoption is forecast to reach 50 percent by 2030, overtaking 3G as the primary technology. Although 5G adoption remains in its early stages, it is projected to reach 17 percent of total connections by 2030, primarily in South Africa, Nigeria, and Kenya.
• Economic Impact and Infrastructure Needs for 5G: By 2030, 5G alone is expected to contribute $10 billion to the region's economy, accounting for 6 percent of the mobile sector's total economic impact. GSMA's report emphasizes the need for progressive spectrum policies, particularly the release of mid-band spectrum, to support long-term growth and equitable digital access. Additionally, 5G Fixed Wireless Access (FWA) is gaining traction as a primary broadband solution in countries such as Angola, South Africa, Nigeria, Kenya, Zambia, and Zimbabwe, addressing demand for high-speed connectivity in underserved areas.
• Strengthening Digital Security: South Africa became the first country in Sub-Saharan Africa to implement GSMA Open Gateway APIs, focusing on fraud prevention and security with Number Verification and SIM Swap APIs. This initiative is part of broader efforts across the region to improve digital security, particularly within digital banking​.
• Generative AI Potential: Generative AI is expected to contribute up to $1.5 trillion to Africa's economy by 2030, with mobile operators increasingly using AI for customer engagement and network optimization. MTN and Vodacom, for instance, are deploying AI-powered initiatives to enhance operational efficiency, although the region faces a shortage of skilled AI professionals.

Through this report, the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, advocates for a series of critical actions to ensure sustainable growth and digital inclusion:

1. Affordability Reforms: High costs remain a barrier to mobile access, with the report calling for reduced taxes on the sector, such as lowering import duties on handsets and cutting activation fees, to make services affordable and accessible for all.
2. Revitalized Universal Service Funds (USFs): Many USFs in Sub-Saharan Africa are underperforming, often hindered by inefficiencies. The report calls for reforms to improve transparency, streamline disbursements, and direct funds toward impactful initiatives, such as digital literacy programs in underserved areas.
3. Progressive Spectrum Policy: With increasing data demands, the report urges governments to release additional spectrum, particularly in the 6 GHz band, and to adopt policies that ensure efficient, affordable, and environmentally sustainable mobile network expansion.

Infographic: GSMA Intelligence

With respect the mobile technology's contributions to the UN Sustainable Development Goals (SDGs), the report says the industry "contributes to SDG 4, which seeks to ensure inclusive and equitable quality education, and promote lifelong learning opportunities for all. Digital transformation is making learning resources more accessible, enhancing educational outcomes and supporting continuous learning. By bridging gaps in education access and improving the quality of education, mobile technology is fostering a more inclusive society."

What investment or commercial opportunities are you seeing in Sub-Sahara's mobile technology industry? What are your recommendations for closing the digital divide?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

With the Rise of genAI in North America, GSMA Says 'Ethical Concerns Around AI Also Need to Be Addressed'

The US and Canada continue to be among the global frontrunners in 5G adoption, a testament to the significant investments by operators and the strong demand from customers for enhanced connectivity," says the GSMA in its annual report on the state of North America's mobile economy. (North America in this report as the US, Canada and the Caribbean.) The UK-based organization adds that "The rollout of 5G across North America is occurring alongside a wave of mobile network innovations and technological advancements, including the rise of generative AI (genAI), the expansion of satellite capabilities and increased network API exposure. Operators and the wider mobile ecosystem see these trends as critical to unlocking innovation and generating new revenue opportunities.

The report's key findings include:

• 5G enters its next phase: "North America continues to be a global leader in 5G. By the middle of 2024, 5G accounted for over 55% of connections in the region. 5G fixed wireless access (FWA) services have also gained significant traction, with the US reaching nearly 10 million FWA subscribers at the end of Q2 2024."
• A new chapter begins for private wireless networks: "Private wireless networks have existed for some time, but adoption had been relatively low. Thanks to evolving 4G and 5G networks, however, mobile technologies and networks can now more tightly link with enterprise needs. An improved ability to customize networks for specific enterprise use cases, facilitate greater security and enable connected machines and processes are among the many operational benefits conferred by private wireless networks. These opportunities are being explored in a range of enterprise sectors."
• Momentum builds behind aerial connectivity: "Telecoms networks remain the primary form of connectivity, supported by the wide area coverage of wireless networks and the mass production and adoption of mobile devices. In recent years, however, technological advances in various satellite and other non-terrestrial networks (NTNs) have helped to overcome several limitations associated with aerial connectivity. This has resulted in significant performance improvements, lower deployment costs and more commercially viable business models for satellite and NTN-based connectivity solutions."
• Operators take steps to fulfil generative AI's potential: "Operators in North America are adopting genAI across various domains, supporting both internal transformation and new business opportunities. Much of the focus is on deploying genAI in customer service departments to enhance employee productivity and deliver more personalized customer offers. GenAI is also being used in network management, aligning with operators' focus on improving user experience and network security. Many strategic collaborations are underway to help operators maximize the value of this new technology. However, challenges such as data privacy concerns and the shortage of skilled AI professionals remain key barriers to AI adoption."
• GSMA Open Gateway gains traction: "By June 2024, 53 operator groups had signed up to the GSMA Open Gateway, representing 240 mobile networks and accounting for 67% of mobile connections globally. Between the participating operators, all regions are covered; AT&T, Dish, Rogers, T-Mobile US and Verizon are among the operators in North America that have signed up to the initiative. Many of the early API launches around the world have focused on fraud prevention and security, using SIM Swap and Number Verification. These represent easy wins, given the ever-present risks from fraudsters and breaches for operators and their customers. Other parts of the API library are also being deployed, as evidenced by the work done by US operators and drone manufacturers to test the Device Status API."
• Policies for success: "Continued mobile evolution depends on the expansion of operators' mobile spectrum holdings across low, mid- and high bands to deliver speed, capacity and geographical coverage. Additional spectrum can boost the provision of cost-efficient investment and enhance network quality in North America, which can support mobile to grow its role in regional economic development strategies."

Infographic: GSMA Intelligence

The report importantly points out that "Ethical concerns around AI also need to be addressed." The GSMA asserts that "The mobile industry is committed to the ethical use of AI in its operations and customer interactions to protect customers and employees, remove any entrenched inequality and ensure that AI operates reliably and fairly for all stakeholders." Moreover, "The GSMA's AI Ethics Playbook serves as a practical tool to help organizations consider how to ethically design, develop and deploy AI systems. Increased collaboration between policymakers can also help private sector organizations establish appropriate AI guidelines. To support this outcome, the EU AI Office and the US AI Safety Institute recently announced they will work together on tools to evaluate AI models."

As for the mobile industry's impact on the UN Sustainable Development Goals, the report says its "most recent analysis shows that the mobile industry continues to achieve its highest impact on SDG 9: Industry, Innovation and Infrastructure, driven by the increased reach of mobile networks and growing take-up of mobile internet services." What is more, "Progress has also been made in reducing disparities in mobile internet adoption between different user segments, supporting the industry's contribution to SDG 5: Gender Equality and SDG 10: Reduced Inequalities."

What do you think of the report's findings? What are your recommendations for how to ethically design, develop and deploy AI systems?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Exploring Use Cases on How AI Delivers Impact in Africa

"AI holds immense potential to boost Africa's economy and to support the Sustainable Development Goals (SDGs) on the continent, says a report published by the GSMA, a UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change. With funding from the UK Foreign, Commonwealth and Development Office, the report's authors explain that "While AI is already being developed and deployed to support a range of use cases across African countries, little research has focused on building a body of evidence of AI use cases for development on the continent." They further explain that their "report is based on the analysis of over 90 use case applications identified in Kenya, Nigeria, and South Africa – which benefit from thriving tech ecosystems – across agriculture and food security, energy, and climate. While many AI use cases are relatively nascent, with some being deployed as part of projects or pilot schemes, a number of commercially viable solutions have also emerged. Often, AI is being incorporated into existing digital products and services, acting as an enabler to make digital solutions more relevant and efficient, amplify their impact, and facilitate scaling."

The report importantly points out that "The agritech sector is seeing most of the AI innovation, especially in Kenya and Nigeria where agriculture continues to play a significant role in the economy. AI is already being used for agricultural advisory, with companies like TomorrowNow and ThriveAgric providing farm-level insights to farmers, and for financial services with companies like Apollo Agriculture developing alternative credit assessment methods."

AI is also "being deployed in the energy sector, especially in Nigeria, where emerging technologies like Internet of Things (IoT) act as an entry point for advanced data analytics in smart energy management. Use cases such as energy access monitoring and productive use asset financing, developed by companies like Nithio, remain at a developing or nascent stage but present significant potential to reduce energy poverty. AI is also supporting climate use cases especially for biodiversity monitoring and wildlife protection in Kenya and South Africa, driven by large tech companies like Microsoft's AI for Good Lab and nonprofit organizations such as Rainforest Connection."

Regarding high-level recommendations, the report says different stakeholders – governments, development partners, development finance institutions (DFIs), non-governmental organizations (NGOs) and Civil Society Organizations (CSOs), large tech companies and startups, and research and academic institutions – "can take a number of actions and collaborate to ensure that impactful innovations in Africa can be deployed and scaled. This involves investing in domain-specific and local language data, adopting participatory approaches to data collection, unlocking access to existing data sources, and ensuring data privacy and security."

The report adds that "Strengthening baseline infrastructure and promoting renewable energy, providing hardware and cloud credits, enhancing edge computing capabilities and building institutional capacity will be essential to boost local compute capacity. In addition, fostering academic-industry collaboration, raising awareness and building capacity in the public sector will be essential to create a pipeline of AI talent while ensuring informed policymaking. To foster adoption and usage of AI-enabled services, enhancing digital skills among end users and integrating emerging skills like prompt-engineering into upskilling programs will be key, especially as generative AI solutions gradually grow in Africa."

Moreover, "Stakeholders across sectors can also focus on supporting the wider tech and AI ecosystem to foster an environment conducive to innovation and AI deployment across use cases. This involves engaging in partnerships to unlock access to critical resources for AI entrepreneurs and researchers, and to support the development of the AI ecosystem through data-sharing or infrastructure-sharing initiatives."

I concur with the authors that:

Adopting a consortium-based approach has the potential to help address the financing gap, while adopting innovative finance mechanisms can de-risk investments. Combining funding with technical assistance and go-to-market support can also help founders in their scaling journey. Increased R&D spending will be essential to support local research capacity, while local-global knowledge exchange can drive further momentum and raise awareness about local innovation. As countries work on developing national AI strategies, it will be critical to ensure a collaborative and inclusive process, to include principles for the ethical and safe use of AI, and to establish a clear roadmap for implementation. Policymakers can also consider rolling out regulations in a phased manner to allow innovation to flourish.

Do you agree with the recommendations on how different stakeholders can deploy and scale impactful AI innovations in Africa?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Mobile Revenues Will Reach $227 Billion in Asia Pacific by 2030, Says GSMA Report

"The mobile industry continues to underpin the rapid digital transformation in Asia Pacific, with advanced mobile networks enabling innovative use cases for consumers and enterprises," according to GSMA's annual report on the state of the mobile industry in the Asia Pacific region. The UK-based organization, which aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, adds: "The role of mobile infrastructure and services will become even more vital to the way society functions as governments increasingly use digital technologies to tackle some of the most pressing social and economic challenges."

The report points out that "By the end of 2023, 1.8 billion people in Asia Pacific (63% of the population) subscribed to a mobile service." What is more, Growth in mobile internet penetration has been remarkable. At the end of 2023, 51% of the region's population used mobile internet, equating to just over 1.4 billion users – almost triple the figure a decade earlier. However, large swathes of the population across the region still remain unconnected, most of them within the usage gap." The GSMA importantly notes that "Addressing the usage gap is crucial to closing the digital divide and enabling life-enhancing applications around finance, health and education."

The report's key findings include:

• 5G continues to rapidly grow, but 4G will remain the dominant technology for the foreseeable future
• By the end of 2030, Asia Pacific countries will be on both ends of the global 5G spectrum
• Mobile data traffic in Asia Pacific will quadruple between 2023 and 2030
• Licensed cellular IoT connections in Asia Pacific will reach 270 million by 2030
• By 2030, mobile revenues will reach $227 billion in Asia Pacific
• At the end of the decade, mobile's economic contribution will reach $1 trillion
• The fiscal contribution of the mobile ecosystem reached $90 billion in 2023 and 5G will add almost $130 billion to the Asia Pacific economy in 2030
• Satellites and non-terrestrial networks can help reduce the connectivity gap, by bringing communications to the region's challenging terrains – including archipelagos, rainforests, deserts, and mountain ranges – where traditional infrastructure is expensive and difficult to build.
• Operators across the Asia Pacific region are harnessing the power of generative AI (genAI) to drive internal transformations and seize new revenue streams through AI investment.

I appreciate how the GSMA explains that "The impact of mobile connectivity is evidenced by its contribution to the economy." For example, "In 2023, mobile technologies and services generated 5.3% of Asia Pacific's GDP, a contribution that amounted to $880 billion of economic value added, and supported around 13 million jobs across the region."

With respect to the mobile industry's impact on the UN Sustainable Development Goals (SDGs) in the region, the GSMA says the mobile industry continues to achieve its impact on SDGs "driven by the increased reach of mobile networks and growing take-up of mobile internet services. SDG 9: Industry, Innovation and Infrastructure, SDG 6: Clean Water and Sanitation and SDG 4: Quality Education were the most improved SDGs in the region between 2015 and 2022. The growing use and adoption of smartphones and mobile internet is contributing to mobile's impact on the SDGs."

Infographic: GSMA Intelligence

What do you think of the report's findings? What localized mobile services are you developing for the Asia Pacific region?

 

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Mobile Internet Adoption Continues to Accelerate Among Women in LMICs, But Further Action is Required to Close the Gender Gap

In its annual report that explores the latest data on the mobile gender gap, the key barriers preventing women's equal access to and use of mobile, and what is needed to close the mobile internet gender gap, the GSMA says "Mobile phones and mobile internet can be life changing, enabling people to stay connected to each other and access information and services from anywhere, including health care, education, e-commerce, financial services and income generating opportunities. In 2023, the world was more connected than ever before with more than 3.7 billion people in low- and middle-income countries (LMICs) accessing the internet on a mobile phone." Moreover, according to the report, "Mobile is the primary way people are accessing the internet in LMICs, accounting for 84% of broadband connections in 2023. This is especially true for the underserved, including women and those who live in rural areas. In 10 of the 12 countries surveyed for this report, women who use the internet are more likely than men to access it exclusively on a mobile phone."

The report points out that "Across LMICs, 83% of women now own a mobile phone, 60% own a smartphone and 66% use mobile internet. However, mobile access and use remain unequal. Women are still less likely than men to have access to mobile phones, mobile money, mobile internet and other mobile services." Disappointingly, "Women are also less likely than men to have equal use of these services, particularly the most underserved women, including those who have low literacy levels, low incomes, live in a rural area or have a disability."

The GSMA says its "latest data shows that the mobile internet gender gap narrowed from 19% in 2022 to 15% in 2023 due to women adopting mobile internet at a faster rate than men. This brings us back to where we were in 2020, but it is not yet clear whether this trend will continue. It is essential for women, and societies more broadly, that this momentum continues and the mobile gender gap continues to close."

What is more, "Addressing the mobile gender gap provides significant social and commercial benefits to individuals, societies and economies. Connectivity is vital to achieving the United Nations Sustainable Development Goals (SDGs), including those related to health, education and financial inclusion. GSMA analysis has estimated that closing the gender gap in mobile ownership and use in LMICs over an eight-year period could deliver $230 billion in additional revenue to the mobile industry. The Global Digital Inclusion Partnership estimates that 32 LMICs are on track to lose more than USD 500 billion in GDP in the next five years due to the digital gender divide."

The report importantly explains: "We know that once women start using mobile phones and mobile internet, they usually see the benefits and it improves their lives to a similar degree as men. In 2022, we found that across the 12 survey countries, most people who use mobile internet believe it has had a positive impact on their lives and use it every day, with little difference by gender."

I concur with the following assertion made by the report's authors: "Ensuring that women can access and use mobile is essential, especially in our increasingly digital world. Mobile can enable women to be more resilient in the face of economic, climate and political crises and shocks. More attention, effort and investment are needed to close the mobile internet gender gap – a goal we must continue to strive to meet so that women, their communities and society can reap the full, life-changing benefits of mobile."

The UK-based organization that aims to unify the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change, presents the following recommendations for all stakeholders to close the mobile gender gap:

• Ensure there is a focus on gender equality and reaching women at an organizational and policy level through senior leaders championing the issue and setting specific gender equity targets.
• Understand the mobile gender gap by improving the quality and availability of gender-disaggregated data, and understanding women's needs and the barriers they face to mobile ownership and use.
• Explicitly address women's needs, circumstances and challenges in the design and implementation of mobile-related products, services, interventions and policies. This includes addressing the barriers women face related to affordability, knowledge and digital skills, safety and security, access and the availability of relevant content, products and services.
• Collaborate and partner with different stakeholders to address the mobile gender gap. Targeted intervention is needed from industry, policymakers, the development community and other stakeholders to ensure that women are no longer left behind.

While it is encouraging mobile internet adoption is accelerating among women in LMICs, further action is required to close the gender gap.

Do you agree with GSMA's recommendations for stakeholders to close the mobile gender gap? What would you add?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

5G is Pivotal for Ongoing Transformation Efforts in Eurasia

"The early stages of 5G development are underway in Eurasia," according to the GSMA's latest report on the state of Eurasia's mobile economy. Governments in the region, which for the purposes of this report include Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Turkmenistan and Uzbekistan, "are prioritizing the technology's integration into national development plans, and operators are investing in 5G infrastructure and applications to meet the growing demand for enhanced connectivity."

What is more, "The Eurasia region is expected to experience a significant increase in 5G adoption in the next few years, based on a return to stable conditions, with projections rising from less than 1% currently to just over 40% by 2030. Although 4G will remain the dominant technology for the foreseeable future, 4G adoption levels will begin to decline from 2026 as 5G gathers momentum because of the availability of more affordable 5G smartphones."

Available in English and Russian, the report's other findings include:

• 5G will add almost $23 billion to the Eurasian economy by 2030, with 5G adoption rising from less than 1% in 2023 to 41% by 2030. 
• The mobile industry added $200 billion of economic value to the Eurasian economy in 2023 – equivalent to 7.9% of GDP – and supported 770,000 jobs, highlighting the importance of mobile to the digital economy.
• However, there is a significant Usage Gap in Eurasia which is widest in Turkmenistan (51%) and Tajikistan (48%), compared to a global average of 37%.
• Operators are rallying behind the GSMA Open Gateway initiative and integrating AI to enhance customer services and optimize networks.

Addressing artificial intelligence (AI) opportunities for operators, the GSMA says "Mobile operators in the region are integrating AI, particularly generative AI (genAI), to enhance customer services, sales, marketing and network management." For example, "Operators such as MTS and Veon, are increasingly developing use cases, including climate-action solutions and platforms that support local languages to improve the customer experience. Furthermore, operators are prioritizing the ethical use of AI and developing partnerships, such as the collaboration between the GSMA and IBM." The report adds that "Although interest is growing in Eurasia, AI adoption remains limited in the region."

Regarding the financial technology sector, this growing sector "has experienced remarkable growth in Eurasia as digital payments continue to be a dominant service. Kazakhstan and Uzbekistan in particular possess thriving fintech landscapes thanks to initiatives such as open banking and the introduction of digital currencies. Diverse payment methods, including mobile payments, QR code transactions and buy now, pay later (BNPL) services cater to individuals and businesses, fostering financial integration." The report adds that "Operators in both countries have introduced mobile payment options to explore opportunities to generate revenues beyond core services and to enhance the customer experience. The further expansion of fintech in Eurasia will offer opportunities for operators, particularly with growing 4G and 5G adoption."

Infographic: GSMA Intelligence

As for the mobile industry's impact on the United Nations Sustainable Development Goals (SDGs) in Eurasia, the GSMA explains that "driven by the increased reach of mobile networks and growing take-up of mobile internet services, the mobile industry continues to achieve its impact on SDGs. "In Eurasia, between 2016 and 2022, the mobile industry had the highest impact on SDG 4: Quality Education, which also improved the most compared to the previous year, along with SDG 6: Clean Water and Sanitation and SDG 7: Affordable and Clean Energy. Growing smartphone and mobile internet adoption is contributing to mobile's impact on SDGs."

What are your thoughts about the report's findings? What are your recommendations for accelerating AI adoption in Eurasian region?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Advances in AI Underpin New Mobile Services and Devices in China

According to GSMA's most recent annual report on the state of China's mobile economy, "The evolution of 5G can be viewed in terms of distinct phases. The initial phase was about enhancing fundamental connectivity aspects, including wide area coverage, capacity and solution reliability. With the number of 5G connections in China surpassing 800 million (45% of total connections) at the end of 2023, mobile operators are ready to move to the next phase of the technology's development, with investment in 5G-Advanced. This could enable the industry to focus on new growth opportunities from enhanced 5G capabilities while also delivering economic benefits."

The GSMA notes that China's artificial intelligence (AI) "sector has rapidly advanced since companies gained permission in August 2023 to release their large language models (LLMs) to the general public." The report adds that "Much of the early work on generative AI (genAI) in the mobile industry has focused on using the technology to support internal use cases, such as improved customer care via enhanced chatbots and automated development of marketing collateral." What is more, "Chinese operators have also demonstrated their interest in using genAI for network operations and management. For example, China Telecom is building its own AI-based system to identify the root cause of network faults. Meanwhile, China Mobile has discussed the potential to make AI native to its 6G networks."

Regarding AI's integration into mobile devices, the report asserts: "Smartphones, as the most ubiquitous personal consumer devices, were always going to be a prime focus for genAI commercialization. Recent technology advances in mobile chipsets, cloud computing and breakthroughs in smaller LLMs have made genAI on smartphones possible."

What is more, "The integration of genAI on smartphones will help hyper-personalize the user experience, enhance the OS feature set and evolve native digital assistants. On the app side, genAI is expected to help introduce a plethora of new functionality in mobile apps across verticals, such as text-to-digital content generation. Existing mobile apps should also see advanced AI-enabled improvements in functionality, such as text-analysis apps."

Available in English and Chinese, the report's additional key findings include:

• There are now 1.28 billion unique mobile subscribers in China – a penetration rate of 88%
• Mobile's overall contribution to the Chinese economy in 2023 reached $970 billion, or 5.5% of GDP
• 5G is expected to reach 1.6 billion connections in 2030, representing a third of the world's total, and forecast to contribute $260 billion to China’s GDP
• An additional 290 million people in China now use mobile internet compared to eight years ago (2015), closing the country’s Usage Gap from 43% to just 16%
• Mobile data traffic in China is expected to quadruple by the end of the decade

Infographic: GSMA Intelligence

As for China's mobile industry's impact on the United Nation Sustainable Development Goals (SDGs), the GSMA highlights that "the Chinese mobile industry accelerated its impact on the" SDGs with "SDG 6 (Clean Water & Sanitation) and SDG 4 (Quality Education) scored highest in the region, driven by rising mobile internet adoption and use, as well as the growing uptake of IoT solutions."

With respect to 5G driving innovation in water management, "SDG 6 focuses on ensuring the availability and sustainable management of water and sanitation for all," the report explains. "Mobile technology improves many aspects of water delivery and sanitation provision. Effective metering and revenue collection are central to a healthy, functioning water utility. At the same time, IoT solutions such as smart water meters are helping utility providers and their customers understand consumption behaviors to drive efficiencies in the energy and water sectors."

What do you think of the report's findings? Is your company developing mobile AI solutions for the China market?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

How Technology Can Drive the Transition to a Superior Future

According to a report produced by Force for Good, a project of the F4G Foundation, a non-profit limited liability company incorporated under the laws of England and Wales, "technology can provide the means to create a sustainable, secure, and superior world. It can help us finish the job of liberating the remaining populations across the world, providing inclusion for all in finance, education, healthcare, housing, dignified work, and a technology enabled world."

The report, entitled Technology Driving the Transition to a Superior Future, includes a letter authored by Ketan Patel, chair of Force for Good's advisory council. Mr. Patel points out that the 2023 "report identified 19 technologies that the largest 100 tech companies were pursuing in a bid to lead the world into a new era. We found that these companies had universally embraced ESG, were actively making their operations across the globe sustainable, and the leaders among them were making a positive impact on society at large." Mr. Patel also notes the "19 technologies identified continue to underpin the efforts of the largest and most resourceful companies. Importantly, what is clear is that a small sub-set of these technologies are the most powerful arbiters of the future, and these are AI, quantum computing, nanotech, genetics, and fusion." 

The 19 technologies include artificial intelligence, big data analytics, quantum computing, internet of things (IoT), robotics, drones, autonomous vehicles, smart grid, renewables, energy storage, next generation nuclear (fusion), eMobility, virtualization (VR, ER, AR, XR, MR), blockchain, material science, 3D printing, nanotechnology, and space technology.

Below are the report's key messages:

• Existing technologies enabled by AI can close nearly 50% of the SDG gap, if scaled and deployed globally, and can help position the world for the transition to the Information Age; this can bridge the otherwise unsurmountable capital of US$175 trillion needed for the SDGs, and a shortfall of US$137 trillion.
• The tech industry is the critical player required to take the lead given its expertise, products, influence and ability to access capital, rolling out technology at scale across the world and driving the world into the next era; three of the ten initiatives identified - universal connectivity, leveraging generative AI across the SDGs, and mass financial inclusion - together contribute to nearly 30% of the SDGs and lay the foundations for levelling up the world.
• 19 core technologies have been identified as the focus of the top 100 tech companies in competing for the future and are also the focus of geopolitical competition between countries and power blocs, and their control is increasingly seen as a key strategic asset for nation states.
• While the US has the clear lead from a macro and technology perspective, China has drawn level with the EU on key macro fronts and built a strong position in many of the core technologies, the EU has the biggest market which positions it as a rule setter for others, and India is now rising to take a position among these power blocs; US internal political divisions and politicization of the transition among other issues represent noteworthy risks to its leadership position and ability to lead the world into the next era.
• The risks of a dangerous transition including global climate, migration and socio-political-economic disasters are heightened unless the two-thirds of the world that were not material beneficiaries of the Industrial Age, predominantly in the Global South and also left behind in advanced nations are included; a post transition world, built on a more inclusive platform, can be powered by the identified core technologies, and a suite of others currently under development including fusion, gene-editing and nano-tech, creating a more secure, sustainable and superior future.

The report also presents AI's impact on each SDG:

SDG #1: No Poverty

• Predictive analytics to identify regions at risk of poverty.
• AI-driven agricultural technologies to increase crop yields for small farmers.
• Automating and improving the efficiency of aid distribution.

SDG #2: Zero Hunger

• Precision agriculture for optimizing food production and reducing waste.
• AI in supply chain management to reduce food spoilage.
• Development of AI-based nutritional planning tools.

SDG #3: Good Health and Well-Being

• AI in diagnostics to improve disease detection and treatment.
• Personalized medicine for tailored healthcare solutions.
• AI-driven research in drug discovery and epidemic tracking.

SDG #4: Quality Education

• Adaptive learning platforms for personalized education.
• AI tools for language translation to overcome education barriers.
• Analyzing educational data to improve teaching methods.

SDG #5: Gender Equality

• AI algorithms to identify and reduce gender biases in hiring.
• AI-driven platforms to support women entrepreneurs.
• Analyzing data to better understand and address gender disparities.

SDG #6: Clean Water and Sanitation

• AI for monitoring and predicting water quality issues.
• Optimization of water distribution systems in urban areas.
• AI in wastewater treatment processes for better efficiency.

SDG #7: Affordable and Clean Energy

• AI in optimizing renewable energy sources.
• Predictive maintenance for energy infrastructure.
• Enhancing energy efficiency in buildings and industries.

SDG #8: Decent Work and Economic Growth

• AI-driven job market analytics for skill development.
• Automation to increase productivity and create new job opportunities.
• AI tools for small businesses to access markets and finance.

SDG #9: Industry, Innovation and Infrastructure

• AI in predictive maintenance for industrial machinery.
• Facilitating research and development through AI-driven insights.
• Enhancing logistics and supply chain efficiencies.

SDG #10: Reduced Inequalities

• AI in financial services to provide credit access to the underserved.
• AI-driven educational tools for marginalized communities.
• Enhancing accessibility technologies for people with disabilities.

SDG #11: Sustainable Cities and Communities

• AI in urban planning for sustainable and efficient cities.
• AI-driven traffic management and public transport optimization.
• Enhancing public safety through smart surveillance systems.

SDG #12: Responsible Consumption and Production

• AI in supply chains to promote ethical sourcing and reduce waste.
• AI tools for lifecycle assessment of products.
• Automation in recycling processes.

SDG #13: Climate Action

• AI in climate modeling and forecasting.
• AI-driven solutions for carbon footprint reduction.
• Enhancing the efficiency of climate change mitigation strategies.

SDG #14: Life Below Water

• AI for monitoring and protecting ocean biodiversity.
• Predictive analytics for sustainable fishing practices.
• AI in studying and mitigating the effects of ocean acidification.

SDG #15: Life On Land

• AI in wildlife tracking and habitat protection.
• Predictive tools for forest fire prevention.
• AI-driven land-use planning for sustainable development.

SDG #16: Peace, Justice and Strong Institutions

• AI in crime prediction and prevention.
• Enhancing legal research and access to justice through AI tools.
• AI-driven systems for monitoring and preventing corruption.

SDG #17: Partnerships For the Goals

• AI to analyze and optimize international aid.
• Facilitating cross-border collaboration through AI-driven platforms.
• Enhancing global data sharing and analysis for informed decision-making.

In its conclusion, the report asserts that "Technology is the catalyst for a civilizational shift in the world. As such, competition for technology leadership has become a matter of national security. However, in the absence of raising the Global South, the continued progress of the rich nations of the Global North is at risk." Moreover, "The SDGs can be solved with existing solutions and deliver a more equitable platform from which technology can build a far superior future. In the transition to a new civilization built on information and a new generation of technologies, the world is about to enter a whole new era that has the potential to deliver peace, prosperity, and freedom to all. The tech industry has a critical role to play in building this superior future."

What are you recommendations on how technology can drive to a superior future?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Recommendations for Realigning the Global Financial Architecture to Achieve Financial Stability, Boost Productive Investment and Create Better Jobs

"Today, we see setbacks in indicators on poverty, hunger and gender equality, to mention just a few," Rebeca Grynspan, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), wrote in the Forward to The Trade and Development Report 2023: Growth, Debt and Climate – Realigning the Global Financial Architecture. Ms. Grynspan adds that "The

financing gap for the Sustainable Development Goals in the global South – which totaled $2.5 trillion in 2015 – now amounts to $4 trillion. Nearly half of all humanity, or 3.3 billion people, lives in countries that spend more resources on debt servicing than on funding health or education. At this pace, only 15 percent of the Sustainable Development Goals will be achieved by 2030."

Ms. Grynspan points out that UNCTAD's report "identifies three specific global challenges that have crystalized during the year 2023. Weak global growth, divergence between major economies and between developing countries, as well as the increased role of geopolitical factors, indicate that we are witnessing a change in the nature of global interdependence, or a transition from the period of hyperglobalization to one of polyglobalization."

Focusing on how to realign the global financial architecture, the report identifies five core policy priorities:

1. Reducing inequality. This should be made a policy priority in developed and developing countries. This requires concerted increases of real wages and concrete commitments towards comprehensive social protection. Monetary policy is not to be used as the sole tool to alleviate inflationary pressures. With supply-side problems still unaddressed, a policy mix is needed to attain financial sustainability, help lower inequalities and deliver inclusive growth.
2. Balancing the priorities of monetary stability with long-term financial sustainability. In light of growing interdependencies in the global economy, central banks should assume a wider stabilizing function within this landscape.
3. Regulating commodity trading generally, and food trading in particular. This needs to be done internationally, using a systemic approach developed within the framework of the global financial architecture.
4. Addressing the crushing burden of debt servicing and the threat of spreading debt crises. To do this, the rules and practices of the global financial architecture need to be reformed. The mechanisms, principles and institutions of global finance should ensure reliable access to international liquidity and a stable financial environment that promotes investment-led growth. Given the failures of the current architecture to enable the resilience and recovery of developing countries from debt stress, it is crucial to establish a mechanism to resolve sovereign debt workouts. This should be based on the participation of all developing countries and include agreed procedures, incentives and deterrents.
5. Providing reliable access to finance and technology transfer to enable the energy transition. This would require not only fiscal and monetary agreements among the Group of 20, but also agreements within the World Trade Organization (WTO) to implement technology transfer, and within the International Monetary Fund (IMF) and World Bank to ensure dependable financing. Without eliminating the incentives and regulatory conduits that make cross-border speculative investment so profitable, private capital is unlikely to be channeled to measures to help adapt to climate change.

UNCTAD's report also presents the following specific policy recommendations for a development-centered global debt architecture:

• Increase concessional finance through capitalization of multilateral and regional banks, and issuance of special drawing rights.
• Enhance transparency in financing terms and conditions, using the digitalization of loan contracts to improve accuracy.
• Revise the UNCTAD Principles for Responsible Sovereign Lending and Borrowing to motivate and underpin the importance of guiding principles throughout the stages of sovereign debt acquisition.
• Improve debt sustainability analysis and tracking to reflect the achievement of the Sustainable Development Goals and empower country negotiators with improved data on their potential for growth and fiscal consolidation.
• Enable countries to utilize innovative financial instruments such as sustainable development bonds and resilience bonds. Develop rules for automatic restructurings and guarantees.
• Enhance resilience during external crises, for example by implementing standstill rules on debtors' obligations in crises, and create a space to enable the avoidance of debt distress.
• Encourage borrowers to share information and experiences, drawing inspiration from private creditor coordination.
• Initiate work on a more robust debt workout mechanism and a global debt authority.

With the global economy at a crossroads where divergent growth paths, widening inequalities, growing market concentration and mounting debt burdens cast shadows on the future, I appreciate how the report "outlines an approach based on balancing the pace of disinflation and the impact of high real interest rates not only against inflation indicators, but also in relation to economic activity, employment, income inequality and fiscal stability."

What are your recommendations for how to get the global economy moving in the right direction by using a balanced policy mix of fiscal, monetary and supply-side measures to achieve financial stability, boost productive investment and create better jobs?

​Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Report Calls for Urgent Support to Developing Countries to Attract Massive Investment in Clean Energy

In its 2023 edition of the World Investment Report, the United Nations Conference on Trade and Development (UNCTAD)  called for urgent support to developing countries to enable them to attract significantly more investment for their transition to clean energy. Through this report, the Swiss-based agency of the United Nations, which promotes inclusive and sustainable development through trade, investment, finance, and technology, shows that much of the growth in international investment in renewable energy, which has nearly tripled since the adoption of the Paris Agreement in 2015, has been concentrated in developed countries.

In writing the report's Preface, António Guterres, Secretary-General of the United Nations, explains that the report "has an important role in the biggest battle of our lifetime: keeping temperature increases below the agreed limit of 1.5°C. By monitoring global, regional and national investment trends and developments, this report supports policymakers by showing where investment is on track, and where more is needed. The report's recommendations are an important guide to boosting climate finance and investment in developing countries – one of the most important factors in combating the climate crisis."

The report presents three key messages:

Global FDI retreats, but new project announcements show bright spots

"Global foreign direct investment (FDI) declined by 12 percent in 2022, to $1.3 trillion. The decline was mainly a result of lower volumes of financial flows and transactions in developed countries. Real investment trends were more positive, with growth in new investment project announcements in most regions and sectors. FDI in developing countries increased marginally, although growth was concentrated in a few large emerging economies. Inflows in many smaller developing countries were stagnant, and FDI to the least developed countries (LDCs) declined."

The report also notes that "Industry trends showed increasing project numbers in infrastructure and industries that face supply chain restructuring pressures, including the electronics, automotive and machinery industries. Three of the five largest investment projects were announced in semiconductors, in response to global chip shortages. Investment in digital economy sectors slowed after the boom in 2020 and 2021."

In addition, "Investment project numbers in energy remained stable, allaying, for now, fears of a reversal of the downward trend in fossil fuel investment due to the energy crisis. Oil majors are gradually selling fossil fuel assets to private equity firms and smaller operators with lower disclosure requirements, which calls for new dealmaking models to ensure responsible asset management."

The SDG investment gap widens despite the growth of sustainable finance

"International investment in sectors relevant for the Sustainable Development Goals (SDGs) in developing countries increased in 2022. Infrastructure, energy, water and sanitation, agrifood systems, health and education all saw increased project numbers. However, compared to 2015 when the SDGs were adopted, progress is modest."

Moreover, "A review of investment needs at the midpoint of the 2030 Agenda for Sustainable Development shows that the investment gap across all SDG sectors has increased from $2.5 trillion in 2015 to more than $4 trillion per year today. The largest gaps are in energy, water and transport infrastructure. The increase is the result of both underinvestment and additional needs."

The report also explains that "The growing SDG investment gap in developing countries contrasts with positive sustainability trends in global capital markets. The value of the sustainable finance market reached $5.8 trillion in 2022. Sustainable funds had positive net inflows while traditional funds experienced net outflows. Sustainable bond issuance also continues; it has grown five-fold over the past five years. Key priorities for the market are increasing exposure to developing countries and addressing greenwashing concerns."

Developing countries need vastly more support to attract energy investment

The report points out that "International investment in renewable energy has nearly tripled since the adoption of the Paris Agreement in 2015. However, much of this growth has been concentrated in developed countries." What is more, "More than 30 developing countries have not yet registered a single utility-sized international investment project in renewables. The cost of capital is a key barrier for energy investment in developing countries. Bringing in international investors in partnership with the public sector and multilateral financial institutions significantly reduces the cost of capital."

The report also importantly says "Most developing countries have set targets for the energy transition in nationally determined contributions. Only about one third of them have translated those targets into investment requirements, and few have developed the asset specifications that are needed to design targeted promotion mechanisms and to market bankable projects. As a result, many developing countries use generic fiscal and financial incentive mechanisms that are less effective for the promotion of energy transition investment."

Lastly on the topic of developing countries needing more support to attract energy investments, I strongly support UNCTAD's assertion that "De-risking support to lower the cost of capital for energy transition investment in developing countries must be vastly expanded. More technical assistance should be available for investment planning and project preparation. International investment agreements need accelerated reform to expand policy space for climate action and to strengthen investment promotion and facilitation provisions." Through this report, the Swiss-based agency of the United Nations, which promotes inclusive and sustainable development through trade, investment, finance, and technology, puts forward a Global Action Compac for Investment in Sustainable Energy for All with recommendations for national and international investment policies, global and regional partnerships, financing mechanisms and capital market involvement.

Writing the Forward, Rebeca Grynspan, Secretary-General of UNCTAD, insightfully notes that "Armed with the data and insights this report offers, it is imperative that stakeholders approach investment with a strategic mindset. The complexities and disparities highlighted demand astute decision-making, as the road ahead is fraught with challenges. Together we must navigate this landscape with resolve and intelligence, shaping a more sustainable and equitable world for generations to come."

What are your recommendations for developing countries can attract investment to bolster their clean energy sector?

​Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Mobile Connectivity Is a Lifeline for Society

In its latest report that provides insights on the state of the mobile economy worldwide, the GSMA says "Mobile connectivity continues to be a lifeline for society, helping the most vulnerable people in areas affected by conflict and natural disasters to stay connected. It is also enabling advanced connectivity capabilities needed by verticals to innovate amid diverse political, social and macroeconomic headwinds."

The UK-based organization representing the interests of mobile operators worldwide adds that "By the end of 2022, over 5.4 billion people globally subscribed to a mobile service, including 4.4 billion people who also used the mobile internet." The report notes that "The mobile internet usage gap has narrowed markedly in the last five years – from 50% in 2017 to 41% in 2022 on average – but still remains significant and demands urgent attention from all stakeholders."

What is more, "In 2022, mobile technologies and services generated 5% of global GDP, a contribution that amounted to $5.2 trillion of economic value added, and supported 28 million jobs across the wider mobile ecosystem. 5G will underpin future mobile innovation and services, building on ongoing deployments and adoption. 5G adoption will reach 17% this year, rising to 54% (equivalent to 5.3 billion connections) by 2030. The technology will add almost $1 trillion to the global economy in 2030, with benefits spread across all industries."

Key trends shaping the mobile ecosystem include:

• 5G consumer monetization comes into focus: "Throughout 2023, some 30 new markets will launch 5G services; importantly, many of these will be developing markets across Africa and Asia, making 5G a truly global trend. As 5G adoption continues to scale, the monetization imperative will grow."
• Private 5G builds momentum: "Private wireless solutions are back in vogue, as 5G's enhanced capabilities allow deployments to move beyond low-profile niche offerings."
• Mobile industry shifts towards circularity: "Across the telecoms ecosystem, sustainability has extended beyond corporate social responsibility to become a core strategic priority. Industry players are increasingly adopting a model of production, service offering and consumption that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products for as long as possible."
• The metaverse continues to gain traction: "Momentum for the metaverse continues to grow, alongside advancements in enabling technologies like 5G, AI and wearables. The growing interest from key stakeholders and ecosystem players has led to the emergence of important building blocks for the advancement of the metaverse, notably content and applications, standards and devices, which will be at the forefront of activities in 2023."
• Fintech presents opportunities for mobile industry players: "Fintech has transformed the way financial services cater to consumers and businesses alike. Although investor sentiments fell sharply in 2022 after record funding the previous year, the fundamentals of growth – including high demand, digital-centric lifestyles and enabling regulations – remain strong."

The report also highlights the following statistics:

• There were 5.4 billon unique mobile subscribers in 2022, rising to 6.3 billion by 2030;
• Globally, there were 4.4 billion mobile internet users in 2022, equivalent to 55% penetration;
• 5G will overtake 4G in 2029 to become the dominant mobile technology by the end of this decade;
• 5G adoption will be over 85% in the top 5G markets by 2030, led by the six Gulf Cooperation Council states (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates), developed Asia Pacific, and North America;
• There will be 9 billion smartphone connections by 2030, equivalent to 92% of total connections;
• Globally, smartphone data traffic will rise more than threefold in the period to 2028, with the biggest users in North America and Northeast Asia;
• The total number of licensed cellular IoT connections will double to 5.3 billion by 2030, with Greater China accounting for two-thirds;
• Revenue growth is expected to remain in positive territory in both developed and developing regions for the period to 2030;
• At the end of the decade, mobile's economic contribution will surpass $6 trillion; and
• The fiscal contribution of the mobile ecosystem reached $530 billion in 2022.

Infographic: GSMA

As for the mobile industry's impact on the 17 UN Sustainable Development Goals (SDGs), the GSMA explains that "There are now 11 SDGs where mobile's contribution is over 50, compared to six SDGs in 2020 and none in 2015." Furthermore, "The mobile industry continues to achieve its highest impact on SDG 9: Industry, Innovation and Infrastructure, driven by the reach of mobile networks and take-up of mobile internet services."

The report encouragingly adds that "The biggest improvements were recorded in the industry's contribution to SDG 1: No Poverty, SDG 2: Zero Hunger and SDG 4: Quality Education. This is due to the increasing proportion of people using mobile for activities such as accessing government services, applying and searching for jobs, and obtaining educational information for themselves or their children." The GSMA also notes that there was "an improvement in the affordability of mobile data and devices. This comes after affordability worsened in 2020 because of the decline in per capita income due to the Covid-19 pandemic."

What aspects of the report did you find of particular interest?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

GSMA Report Presents Recommendations for Policymakers to Help Realize Europe's Digital Agenda

In its latest annual report on the state of Europe's mobile economy, the GSMA, a UK-based organization that represents the interests of mobile operators worldwide, says "Mobile networks are vital to economic recovery and realizing green and digital transformation across Europe. Two years into the EU's Digital Decade, the connectivity target of 'Gigabit for everyone, 5G everywhere' has never felt more urgent." The report also notes that "The Digital Europe Program, the Connecting Europe Facility and the recovery funds provided to EU Member States offer an opportunity for operators to partner with governments to improve connectivity across society and drive post-pandemic economic recovery across the region."

While the adoption of 5G is accelerating in Europe, 4G remains remains "the dominant technology across the region, accounting for just over half of total connections by 2025," the report explains However, "4G adoption in Europe will peak in 2022 and then decline." Moreover, "The pace of 5G coverage expansion across Europe will be a key factor in the transition from 4G to 5G. Although 5G network coverage in Europe will rise to 70% in 2025 (from 47% in 2021), nearly a third of the population will remain without 5G coverage. This compares to 2% or less in South Korea and the US."

As for the mobile industry's contribution to Europe's economy and social well-being, the GSMA notes that "In 2021, mobile technologies and services generated 4.5% of GDP in Europe – a contribution that amounted to approximately €760 billion of economic value added." Furthermore, "The mobile ecosystem also supported approximately 2.6 million jobs (directly and indirectly) and made a substantial contribution to the funding of the public sector, with €109 billion raised through taxation. Over the period to 2030, 5G technologies will drive further contributions to the region’s economy, impacting key industries such as manufacturing and public administration."

"As the first industry to have fully committed to the UN Sustainable Development Goals (SDGs)," the report notes that "the mobile industry continues to have substantial positive effects on lives and livelihoods. In 2021, the mobile industry increased its impact on all SDGs, with the average year-on-year increase accelerating compared to 2020. The average SDG impact score across the 17 SDGs reached 53, up from 49 in 2020 and 32 in 2015, meaning the mobile industry is achieving 53% of what it could potentially contribute to the SDGs."

With respect to how European policymakers can help realize the digital agenda, the GSMA points out that "As economies and societies around the world digitalize, the acceleration of 5G in Europe is necessary to ensure that traditional industrial and manufacturing strengths are not dragged down by weaknesses in the ICT sector. With the limitations of existing networks becoming more apparent amid an increasingly distributed workforce, there is also a need to ensure fair and even access for all."

To achieve this, the GSMA says "it is vital to create the right conditions for private infrastructure investment, network modernization and digital innovation. A financially sustainable mobile sector is key to the delivery of innovative services and the deployment of new networks. Policymakers should collaborate with the private sector to stimulate investment in next-generation networks that will form the backbone for Europe's economic recovery by enabling employment, entrepreneurship and innovation while helping achieve essential climate-related goals."

Practical steps that authorities in Europe can take include the following:

• Rethink competition policy and enforcement in terms of harmonized conditions for investment and doing business.
• Fairly allocate the costs of network traffic to the largest drivers, to deliver an economic incentive to use network capacity more efficiently.
• Foster supply-chain diversity and competition, to improve network security and resilience through disaggregation and greater interoperability.
• Adjust the regulatory framework to enable the data economy to thrive in Europe, by ensuring a level playing field in digital markets, services and taxation.
• Implement fair spectrum licensing conditions and avoid excessive charges and limited durations of licenses, which can undermine investment.
• Implement cost-reduction measures and simplification for network deployment to achieve Europe’s Digital Decade connectivity targets.

Infographic: GSMA

While I appreciate how the economic contribution of mobile industry continues to expand in Europe, it is discouraging that market dynamics are impeding European 5G progress. As GSMA's press release puts it directly: "Europe’s ambitious Digital Decade goals remain threatened by slower 5G rollout compared to competitor markets" and "tough market conditions are leaving Europe trailing its global peers." On a more positive tone, European operators are "at the forefront of cutting-edge, energy-efficient technologies and the use of renewables, with many already reaching 100% renewable electricity use across their footprints, powering their network infrastructure, data centers and other sites."

What are your recommendations for how policymakers can help realize Europe's digital agenda?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.