Association  Tasks Politicians On Internet Market 

The Global System for Mobile telecommunications Association (GSMA) has warned that market imbalances between network operators and online service providers could stall growth in several sectors of the internet-based economy, and called on politicians to urgently address the issue.
In its 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.
The body noted that those in charge of setting laws and regulations must consider the interdependence of online services and other growth sectors on the underlying infrastructure investment.
In a recent statement obtained online by the Press, its Chairman, Jose Maria Alvarez-Pallete, said “growing recognition of this issue by policymakers is important, especially as the Internet-based economy expands across all sectors over the next decade”.
The report encouraged  decision makers to consider the full landscape of taxation and regulation.
It also advised   companies investing in infrastructure  to build and upgrade the networks, which underpin online services.
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, noting that much of this growth comes from online services, revenue from which increased 19 per cent per year in 2020.
However, the return on investment in infrastructure for network operators was far lower, at between six per cent and 11 per cent.
The GSMA noted that 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.
The body  further revealed that the Internet continues to grow at a pace in terms of users, services and, most of all, traffic.
It stressed that the growth was relentless, adding that there is much more to go.
“The number of people with access to the internet has reached 4.6 billion in 2020 (via either fixed or mobile networks), an increase of 44 per cent since 2015 and a yearly growth rate of 7.5 per cent.