GSMA Says Google, Facebook, Others Are Squeezing Telcos’ Revenue

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The global body of mobile network operators, GSM Association (GSMA), has said that online service providers such as Google, Facebook (Meta), and Netflix, among others. Currently, they are generating more revenue from the internet at the expense of telecommunications operators. These are who are investing in the infrastructure to provide access.

Therefore, according to the telecoms body, its recent study shows that although the internet value chain is growing strongly. The benefits and returns are flowing principally to players in the online services segment. While the telecom operators are building and running the connectivity infrastructure which underpins these services are not benefitting as strongly as expected.

Furthermore, commenting on the report, GSMA’s Chairman José María Álvarez-Pallete said: “The internet connects 4.6 billion people and drives the global economy. It is transforming business models, unlocking new opportunities, and uplifting communities across the world. This work to ensure that market distortion, regulatory requirements. Or other factors are not limiting the ability of participants to make sufficient returns. This will be in all segments of the ecosystem, and all segments can make a fair return.

GSMA says the study also finds that revenues across the internet value chain nearly doubled in five years. This is from $3.3 trillion in 2015 to $6.7 trillion in 2020. Much of this growth comes from online services; they saw a 19% increase in revenue per annum in 2020.

However, Paid for online services will soon exceed $1trillion in revenues, driving huge capacity demand on global networks. With an annual growth rate of 7.5%, the number of users connected to the internet globally shows no sign of slowing.
Traffic per user grew at 27% per year, with almost 80% of that being driven by video traffic.


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