Views of Vivek Badrinath: “Our immediate priority is to reduce the usage gap”

The digital divide remains a pressing challenge amid growing technological advancements such as 5G. Bridging this gap is critical as digital technologies can promote innovation, create jobs and drive economic growth. Empowering unconnected communities with access to digital infrastructure is essential for their participation in the digital economy. At the World Bank’s Second Annual Global Digital Summit held in Washington, DC, US, and the GSMA’s Mobile World Congress (MWC) 2025, held in Barcelona, Spain, Vivek Badrinath, Director General, GSMA, shared his views on the key gaps in the telecom landscape, the need to rebuild robust infrastructure for affordable connectivity and GSMA’s key priorities going forward. Edited excerpts from his recent addresses…

The global digital connectivity landscape is fraught with many unresolved challenges. On the demand side, the focus is on addressing the usage gap. According to estimates, around 3 billion people technically have network coverage but still lack access to mobile internet. The main reasons are well understood. The first is the affordability of handsets. To address this, GSMA, along with the World Bank, the International Finance Corporation and the International Telecommunication Union (ITU), has formed the Handset Affordability Coalition. This initiative can have a real impact as it involves tackling issues such as taxation, device pricing, distribution costs and financing options for handsets.

Another issue is digital skills. We have reached 70 million people through our internet skills training programmes. For many, there is fear and uncertainty around digital connectivity, with questions such as: What is this device? What does it offer? Is it safe? Will I be exposed to harmful content or bad actors? There are a lot of intangible concerns that need to be addressed. So ultimately, it is about removing these barriers one by one.

Satellite connectivity is a highly useful technology for ensuring coverage and offering security, particularly in remote areas, especially in the context of direct-to-device connectivity. That said, it is still limited in terms of the volume it can handle. While it is effective in reaching otherwise inaccessible regions, it will not solve the usage gap issue. If someone does not have a phone, or their phone is not capable of connecting via satellite, they remain unconnected even if ground coverage exists.

Another important aspect is spectrum. Some of these satellite-based solutions operate using mobile operator spectrum, which naturally prompts ongoing conversations between mobile operators and satellite providers. Satellite connectivity can certainly become part of operators’ service offerings, but it must be managed properly. It needs to follow ITU regulations to ensure that spectrum is used correctly and does not interfere with existing mobile signals, which operate within national regulatory frameworks. So, there is still some regulatory work to be done, particularly around spectrum management for these solutions.

Further, there is a massive investment gap – estimated at about $1.3 trillion – that must be addressed by the end of this decade to establish the infrastructure required to serve all users. Enabling policies are needed to support operators in making these investments considering that operators are responsible for about 85 per cent of the infrastructure costs and empowering them to build strong investment cases is absolutely critical.

There are two key aspects to this. First, when spectrum is sliced too thinly or too many licenses are issued, it weakens the market structure. If there is duplication or even triplication of infrastructure investments, outcomes will not be optimised. So, at a fundamental level, too many licenses often result in players that lack scale and are not viable in the long term. We are now seeing a shift in that mindset. The Indian market, for example, has corrected itself in this area. Second, with newer technologies – starting with 4G and especially with 5G – access to larger spectrum blocks is significantly more beneficial than receiving smaller slices. The performance gains from 100 MHz are not just double that of 50 MHz, they are significantly more. That is because these systems are designed to take full advantage of wider bandwidths, enabling more sophisticated use cases. With larger spectrum allocations, specific spectrum can be dedicated to internet of things, industrial applications, or public safety networks, which is not feasible with fragmented or narrow allocations. Broader spectrum allocations thus allow for greater flexibility and innovation.

Additionally, there is a shift in regulatory thinking when it comes to the cost of spectrum. At the end of the day, a euro can only be spent once. It can either be spent on acquiring spectrum or it can be invested in deploying and utilising that spectrum to deliver real benefits to people. This trade-off is increasingly becoming more central.

Driving connectivity

I believe that the mobile industry is focused on expanding coverage not only for its own benefit, of course, but also for broader development goals. Simply put, this is a J-curve: if the right investments are made upfront, the long-term returns in terms of connectivity, economic growth and inclusion are significant. But those investments are only possible when taxation levels are manageable. In many countries, unfortunately, the telecom sector is subjected to sector-specific taxation that harms its financial viability. That needs
to change.

Another important element that goes hand in hand with infrastructure is handsets. There is no value in rolling out a 4G network if the population cannot afford 4G-capable devices. The real breakthrough will come when governments recognise the broader economic impact. When more people are connected, when they can participate in the digital economy, launch their own businesses and use mobile money, it drives GDP growth.

Emerging markets offer unique opportunities. That is because people are eager to adopt technology, and they often use it in innovative ways. Over the years, telcos have been active in building the ecosystem for start-ups, whether through start-up studios, incubators, or even seed funding in some cases. The GSMA Foundation also runs several innovation programmes across the continent to support young entrepreneurs as they test new technologies and ideas.

Demonstrating that access clearly is how we can start rebuilding trust. This should be the basis of a renewed dialogue between telcos and finance ministries. Currently, at the top levels of the hierarchy, there is consensus that digitalisation is good for the economy – that if you invest a euro or a dollar in digital infrastructure, you get it back many times over through the growth of the digital economy, which in turn lifts the physical economy.

But then, when the time comes to balance the books, that strategic view disappears. The focus shifts to: “Who can I tax to close the gap?” Telecom becomes an easy target because it is a sector where every transaction, each production unit, is backed by a system. Everything is measured, billed and recorded. It is highly structured, so it becomes an easy candidate for taxation.

So, I would absolutely welcome a broader, more holistic debate – one that brings in the International Monetary Fund and connects the dots between digital investment and GDP growth. While telecom might not be the centre of the digital universe any more, it is still a critical enabler. If we can build the networks and empower people with devices, the entire ecosystem can grow from there.

GSMA’s roadmap for driving digitalisation

Looking ahead, there is a lot we can achieve together. First, our immediate priority is to reduce the usage gap. Second, we must maintain our momentum with the Open Gateway initiative. For internet players to truly see us as relevant partners, we need to ensure that these APIs become pervasive across the industry. Third is Artificial Intelligence (AI). Around 80 per cent of operators are already testing generative AI. But beyond that, we need to adapt our networks and expand 5G roll-out as much as possible. That is how we can provide the right infrastructure for AI to thrive.

Fourth, and this is important, if we really want to scale up, we need to work more collaboratively with the broader ecosystem. One example is satellite connectivity. It complements mobile networks by addressing coverage challenges, especially in remote areas, and supports highly mobile use cases. Our industry’s strength is its global scale. We can best contribute to the growth of digital economies by helping other players reach the vast customer base we serve.

Finally, on the energy front, as an industry, we have committed to reaching net zero by 2050. This means phasing out diesel generators across the board. We see ourselves as strong and reliable partners in the mission to advance green energy development.