Digital infrastructure is the cornerstone for building resilient digital economies and it is the key to achieving Sustainable Development Goals (SDGs), with 70% of the targets having a digital component.
According to the ITU’s latest whitepaper, there is a need to close a massive investment gap in the digital infrastructure segment, mostly in developing countries. “Together, let us commit to delivering high-quality infrastructure that will create lasting benefits on markets, economies, and communities around the world,” said Doreen Bogdan-Martin, ITU Secretary-General.
Closing the Global Connectivity Gap
Despite the increase in internet usage in recent years, 35% of the global population does not use the internet at sufficient speeds. This percentage increases to 54% in low- and lower-middle-income countries (LLMICs), primarily due to the absence of necessary infrastructure. Developing this infrastructure is estimated to require at least USD 1.6 trillion, according to high-level calculations by the Digital Infrastructure Investment Initiative (DIII).
In line with this, five potential drivers were identified to assist in closing the global connectivity gap:
- Build out more fiber broadband to provide fast internet for 54% of global urban households, requiring an 18% increase in connections.
- Expand wireless networks (including mobile, fixed wireless, and non-terrestrial satellite networks) by 32% to improve coverage and capacity in LLMICs.
- Extend the connectivity backbone in LLMICs by 1.7 million kilometers to match upper-middle-income countries (UMICs).
- Double the data center capacity in LLMICs to support future data needs, adding 11 watts per household.
- Boost data center capacity in UMICs by 15% of high-income country levels, adding 2 watts per household.
Achieving meaningful digital connectivity can transform communities, businesses, and governments worldwide, leading to enhanced access to education, healthcare, jobs, and financial services. This will result in improved quality of life, enhanced income, and empowered people, particularly in underserved areas.
However, this progress demands coordinated efforts across international, public-private, and cross-sector partnerships to overcome significant development challenges.
Digital Infrastructure Investment Initiative
The Digital Infrastructure Investment Initiative is a crucial collaboration between the ITU, leading development finance institutions (DFIs), and other relevant stakeholders, including a Working Group of over 40 investors, technology companies, governments, and civil society.
Fragmented demand, infrastructure gaps, unclear digital policies, and country-specific risks pose significant barriers to investment. However, innovative financing solutions can address these challenges.
The DIII initiative targets the financing gap in digital infrastructure by focusing on wireless networks, satellites, fixed broadband, data centers, undersea cables, internet exchange points (IXPs), and towers. Its partners aim to tackle these obstacles and drive large-scale investments to achieve global connectivity for everyone by 2030.
Among the DIII Working Group members are leading telecom players such as Ericsson, e&, Huawei, MTN Group, Nokia, Ooredoo, Orange, Telefónica, Vodafone, and ZTE.
The ITU has previously called for USD 100 billion in investments by 2026 to drive universal connectivity and sustainable digital transformation worldwide. In response to this, at MWC 2024, the ITU announced over USD 9 billion in commitments from mobile operator groups, including e&, to expand global connectivity. This milestone reflects the mobile industry’s continued support of the ITU’s mission to connect the world.
As a high-income economy, the UAE has also announced multiple bilateral agreements with Oman and Kenya, among others, to collaborate closely on digital infrastructure investments.
Read More:
Navigating the Challenges Associated with Telecom Infrastructure Expansion
The State of Broadband 2024 Report: Assessing How AI is Closing the Digital Gap
Connectivity Gap: Unbroken Adversity in Rural Areas
