GSMA Asks: Can Europe Improve Its Digital Infrastructure?
Europe’s mobile economy is a vibrant industry that impacts the region’s digital transformation, employment and GDP.
Not only does the industry drive innovation in connectivity with greater 5G adoption but it also supports advancements in technologies like AI and IoT.
GSMA has released its Mobile Economy Europe report for 2025, providing a comprehensive analysis of the recent developments and trends in the European mobile industry.
The report highlights the mobile industry’s vital role in driving technological advancements, societal development and economic growth across Europe.
The GSMA’s Chief Regulatory Officer, John Giusti, explains: “Europe is at a crossroads in its development of the digital infrastructure that its businesses and citizens will need to succeed. It is concerning to see it falling further and further behind other large markets around the world.
“The mobile industry brings more than €1 trillion (US$1.03tn) to Europe’s economy as well as millions of jobs, and its role as a key enabler of commerce, logistics and innovation needs to be prioritised and strengthened.
“Urgent action is needed from the European Commission and other authorities within the European Union to deliver the policy reforms that Europe’s digital economy needs to support strong, sustained network innovation and to re-establish a leadership position in the global technology marketplace by 2030.”
Mobile Connectivity and Economic Impact
Mobile connectivity is essential for increasing productivity, enabling innovation through technologies like IoT and 5G and driving economic growth.
520 million people in Europe (88% of the population) subscribed to mobile services by the end of 2024. This is expected to rise to 527 million (89% of the population) by 2030.
GSMA also highlights the significant contribution the mobile ecosystem plays in Europe’s economy, generating €1.1 trillion (US$1.13tn) in economic value - a figure which is predicted to rise to €1.2 trillion (US$1.23tn) by 2030.
But, the report emphasises that this growth may be difficult to achieve due to the current regulatory environment and slow progress in key network performance and consumer adoption.
5G Development and Future Outlook
Not only will 5G drive innovation across industries and enhance productivity but it is also vital for faster and more reliable connectivity to support new technologies like IoT and AI.
By the end of 2024, 5G adoption in Europe reached 30% of mobile connections - which is around 200 million connections - but this was lower than regions like East Asia and North America.
Germany, Norway, Finland, Switzerland and Denmark have 5G adoption rates of over 40%, making them the leaders in 5G uptake across Europe.
To unlock the capabilities of 5G, Europe must focus on issues surrounding the mobile sector’s capacity to invest.
Network Evolution and Data Traffic Growth
Europe emerges as a leader in phasing out legacy networks. The region had 44 network sunsets completed by Q3 2024, making for around a third of global network sunsets.
By 2025, Europe is expected to have over half of planned network sunsets.
As a result of this, operators can effectively improve energy efficiency and repurpose spectrum for efficient 4G and 5G networks.
Likewise, Europe’s growth in data traffic - from 3.8 GB in 2019 to 15.3 GB in 2024 - reflects the need for significant investment from operators in network upgrades.
Emerging Technologies and Initiatives
The European mobile ecosystem has undergone several new initiatives and trends.
By December 2024, 67 operator groups have signed up for the GSMA Open Gateway initiative, making up 75% of global mobile connections. These operators make up over 20% of GSMA Open Gateway commitments, meaning Europe is a leading region
By focusing on security, optimisation and enhanced customer service, European operators are also at the lead of generative AI adoption.
The region continues to show an interest in growing trends as European authorities begin to take steps to meet global developments in satellite and non-terrestrial network (NTN) connectivity.
Future Success
Europe’s leadership in the global tech race can be secured through urgent action and policy reforms.
The report suggests implementing measures to guarantee fairness in the internet value chain, re-evaluating the existing regulatory framework, taking a long-term view on investment and innovation, applying circular economy principles to network equipment and establishing a pro-investment approach to EU spectrum policy.
By addressing Europe’s digital infrastructure needs and resetting the regulatory framework, we can enhance the position of the European telecoms sector as a catalyst of prosperity and competitiveness.
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