While mobile network operators are expected to invest €270 billion in networks by 2035, around €205 billion more are still needed to underpin Europe's industry, resilience and innovation.
Brussels, May 6, 2026: European mobile operators need to invest almost half a trillion euros over the next decade to upgrade networks to levels comparable to the best in the world, according to new GSMA analysis.
The report, Mobile investment needs in Europeconducted by GSMA Intelligence, concluded that while €475 billion is needed to bring the best connectivity to the continent, operators are only expected to be able to access about €270 billion, leaving an investment gap of around €205 billion.
This comes at a time when Europe's digital capabilities continue to lag behind leading global standards. While standalone 5G – essentially “full” 5G, with faster speeds, lower latency and innovative services and features derived from network slicing – is already available to 80% of the population in Greater China and almost 50% in India, in Europe it reaches only 2% of citizens.
staying behind
Much of this is due to more favorable investment conditions in these non-European markets.
Capital expenditure per connection in Europe is just €35, compared to €70 for the world's connectivity leaders, meaning the bloc remains unable to keep pace and compete.
While mobile internet usage has increased each year since 2018 by an average of 27%, operator revenues have fallen by an average of 3% annually over the same period, further restricting available investment capital.
And the financial burden currently falls on the industry itself: the operators themselves provide 85% of the investment in network infrastructure.
A deficit of 205 billion euros
The new analysis is a timely update to the European Commission's own 2023 research into the likely cost of achieving the Digital Decade goals. It is estimated that between now and 2030, around 174 billion euros will be needed, a figure that rises to more than 200 billion euros.
However, operators have already invested €141 billion since 2021 and Europe has not yet met those goals, although it is increasingly behind the world's 5G leaders. Today's report reveals that of the current €475 billion of investment needed through 2035, only 57% is expected to materialize.
Of the €205 billion shortfall, or 43%, around half is needed to provide 5G coverage on Europe's main transport routes (roads, railways and waterways). A further €35 billion is needed to extend 5G coverage to the entire European population, while €38 billion will create greater network resilience and €28 billion will support innovation and AI-based services.
Closing the gap
To create the investment conditions necessary to unlock the remaining 43%, the report outlines three areas of potential major regulatory reform:
- Consolidation in the market – Since 2015, three-player markets in Europe have seen higher levels of investment as a proportion of revenue and per connection relative to four-player markets, while improving service quality in comparison.
- Effective spectrum management – Spectrum costs in Europe have almost tripled over the last decade. Implementing measures such as low-cost renewals could free up up to €30 billion in capital, with more than 500 licenses due to be renewed by 2035. The long-term certainty offered by indefinite licenses, such as those proposed in the European Union's Digital Networks Bill, would also lead to better incentives for investment.
- Address asymmetric regulation – A number of current regulations, including those relating to open Internet access and net neutrality, the Cyber Resilience Act and the European Electronic Communications Code, impose additional costs and reduce revenue growth opportunities. A more balanced relationship between mobile operators and other players in the digital ecosystem would encourage investment in networks and ultimately boost the industry and innovation.
Realigning Europe's investment environment through these policy reforms will allow Europe's connected capital spending to potentially double over the next decade and reach levels similar to those in North America and East Asia. This, in turn, will help deliver real benefits for users and the market from 5G SA and ultimately 6G connectivity, and underpin Europe's economy, resilience and innovation in the digital age.
Vivek Badrinath, CEO of GSMA, comments: “The numbers are clear: to support Europe's digital ambitions and expectations, almost €0.5 trillion in mobile network investments are needed over the next ten years and only around half of that amount is currently likely to be realised. Europe needs a significantly more investment-friendly regulatory environment to secure the continent's digital future and improve global competitiveness.
“There are encouraging opportunities for policymakers, both in the ongoing review of the merger guidelines and in delivering on the promise of the Digital Networks Act proposals, correcting their known shortcomings without diluting their most ambitious aspects. Inaction now is not an option with Europe's digital future at stake.”
ENDS
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The GSMA is a global organization that unifies the mobile ecosystem to discover, develop and deliver critical innovation for positive business environments and social change. Our vision is to unlock the full power of connectivity so that people, industry and society thrive. Representing mobile operators and organizations across the mobile ecosystem and adjacent industries, the GSMA offers its members three broad pillars: connectivity for good, industry services and solutions, and outreach. This activity includes advancing policy, addressing today's biggest societal challenges, supporting the technology and interoperability that make mobile devices work, and providing the world's largest platform to convene the mobile ecosystem at the MWC and M360 series of events.
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