Page 75 - SAMENA Trends - July-August 2022

ARTICLE SAMENA TRENDS

ARTICLE

The Winds of Change: Broadband Investment

Contributes to the Benefit of All

Broadband infrastructure has become essential to our digitalized
world as the bedrock and conduit of most of our economic, political,
and social activities. Its benefits and contribution to economic
prosperity are clearly positive . Yet, as the digital world evolves,
[1]
the provision, funding, and financing of broadband still largely
rely on old-world network operator-centric models, that are failing
to reflect 21st century market realities. These put the financial
sustainability of broadband infrastructure going forward at risk.
But the winds of change are upon us. Given its clear benefits, and
the reliance of our economies and societies on broadband, its
financial sustainability is key and has consequently moved onto
the agendas of many policymakers in many jurisdictions. This
follows strong industry advocacy efforts over the last decade that
have highlighted the pitfalls of an uneven regulatory playing field in
the long run. “The rules in place for twenty years are running out
of steam, and operators no longer have the right return on their
investments. It is necessary to re-organize the fair remuneration
of the networks,” said EU Commissioner for Internal Markets
Thierry Breton in an interview in May 2022 . Broadening the base
[2]
of contributors to ensure that all those that benefit from broadband
infrastructure are enabled to contribute to it is the tenor of many
discussions taking place across the world.
As digitalization of our society is ongoing,

demands on network development and
optimization will keep growing. A recent
study by the GSMA finds that monthly global
consumer internet traffic volumes have Imme Philbeck
been growing at 34% per year, representing Chief Economist and Director of Sector
per user growth of around 27% every year Development
between 2015 and 2020 . This trend will SAMENA Telecommunications Council
continue in the wake of the Metaverse and
web 3.0. The average mobile user in Europe

is expected to use 16.2 GB/month in 2023,
compared to 8.5 GB/month in 2021, while
a fixed broadband line is expected to use
454 GB/month in 2023 compared to 293
GB/month in 2021.

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