Europe Needs €475 Billion 5G Investment to Close Digital Gap as Global Leaders Pull Ahead

Europe’s ambition to become a global digital leader is facing a major financial reality check, as new analysis from GSMA Intelligence reveals that the continent needs nearly €475 billion over the next decade to upgrade its mobile networks and compete with global leaders in 5G connectivity.

According to the report titled “Mobile investment needs in Europe,” only about €270 billion of that required investment is currently expected to be available. This leaves a significant funding gap of roughly €205 billion, raising concerns about Europe’s ability to keep pace with regions like Greater China and India, where advanced 5G standalone networks are already far more widely deployed.

The report highlights a growing digital divide, noting that while 5G standalone services reach about 80% of people in Greater China and nearly 50% in India, they are available to just 2% of Europeans. It also points to declining operator revenues and rising costs as key barriers slowing down Europe’s digital transformation.

Despite increasing mobile internet usage across Europe, which has grown by an average of 27% annually since 2018, telecom operators have seen revenues fall by around 3% per year. With operators funding about 85% of infrastructure investment, the financial pressure is limiting expansion and innovation across the region.

To close the gap, the report calls for major regulatory reforms, including market consolidation, better spectrum management, and reduced regulatory burdens. GSMA warns that without urgent policy changes and improved investment conditions, Europe risks falling further behind in the global race for digital and AI-driven connectivity.

source: The Guardian