For over a century, information and communication technology (ICT) has been an important driver of economic and social development, facilitating and enabling progress in countries all around the world.
Both developed and developing countries have boosted their national investments in ICT to drive their economic growth. According to recent reports, the global ICT market was valued at approximately USD 5 trillion in 2023 and is projected to reach USD 6.3 trillion by 2028, growing at a compound annual growth rate (CAGR) of 4.7% during the forecast period.
However, studies indicate that ICT development requires continuous innovation and the integration of new technologies. The transformative potential of ICT in facilitating economic growth has startled even the skeptic, modern decision-makers in influential international as well as government bodies and private organizations of many countries. According to a recent report by the Digital Cooperation Organization, which monitors the future trends of the digital economy, the growth of this sector in 2025 will exceed USD 24 trillion (three times the growth of the traditional economy).
The most striking aspect of this development has been the rapid pace of the mobile sector’s advancement. For instance, worldwide ICT access for mobile applications was realized in 2008, much earlier than the benchmark set during the World Summit on the Information Society (WSIS) in 2005, which targeted 2015; this trend continues today. According to data from the International Data Corporation (IDC), global smartphone shipments increased 2.4% year-over-year (YoY), totaling 331.7 million units in the fourth quarter of 2024. This marks the sixth consecutive quarter of shipment growth, closing the whole year with 6.4% growth and 1.24 billion shipments, marking a strong recovery after two challenging years of decline. The market is expected to continue growing in 2025, albeit at a slower pace, as refresh cycles continue growing and pent-up demand is fulfilled. Interestingly, recent findings forecast a CAGR of 14.3% from 2024 to 2030. This rapid adoption reflects a broader trend where artificial intelligence (AI) applications are becoming as fundamental as voice calling and the mobile internet.
Indeed, the breakthroughs in 5G technology, artificial intelligence, cloud computing, and the Internet of Things (IoT) have catalyzed the technological ecosystem’s growth. Moreover, 5G-Advanced and F5G-Advanced (F5G-A) technologies are displaying the potential to provide high-speed, intelligent, and secure 10 Gbps communications services, as warranted by the global demand for internet connectivity. Moreover, the disruption caused by the Fourth Industrial Revolution (4IR) was accelerated by COVID-19, increasing the need for agility, adaptability, and positive transformation. According to the World Economic Forum, as the global economy rapidly digitalizes, an estimated 70% of new value created over the coming decade will be based on digitally enabled platform business models; however, nearly 2.7 billion people still lack access to the internet.
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Bridging the Disparities
Although the contribution of the ICT sector in global economic growth is undeniable, there are substantial differences between countries, with a significant gap between the economies with the highest and lowest average sector growth rates. The estimates featured in the ITU's Facts and Figures 2024 index show that although connectivity continues to increase worldwide, communities in low-income countries still face complex connectivity challenges. Globally, an estimated 83% of urban dwellers used the internet in 2024, while, comparatively, half of the population (48%) used the internet in rural areas. Of the estimated 2.6 billion people offline in 2024, 1.8 billion people live in rural areas. Additionally, while the cost of internet access continues to reduce, affordability remains a challenge as the cost of a fixed-broadband subscription in low-income countries is the equivalent of nearly a third of the average monthly income. 5G coverage is estimated to reach 51% of the world population in 2024, with significant disparities existing between high- and low-income countries. Even though 84% of people in high-income countries are covered, 5G extends to only 4% of those in low-income countries.
Furthermore, digital technology and infrastructure rely heavily on raw materials, and the increasing production and disposal of devices, along with rising water and energy demands, are putting a growing strain on the planet. For example, the production and use of digital devices, data centers, and ICT networks account for an estimated 6% to 12% of global electricity use. Consequently, the Digital Economy Report 2024 has underscored the urgent need for environmentally sustainable and inclusive digitalization strategies.
Developing countries are burdened with the environmental costs of digitalization while reaping fewer benefits. They export low value-added raw materials and import high value-added devices, simultaneously increasing digital waste. In addition, geopolitical tensions over critical minerals, abundant in many of these countries, complicate these challenges further. A prime example of such negotiation is the ongoing U.S.-Ukraine deal involving critical minerals, which form a key component of ICT infrastructure.
The report calls for bold action from policymakers, industry leaders, and consumers. It urges a global shift towards a circular digital economy, focusing on circularity by design through durable products, responsible consumption, reuse and recycling, and sustainable business models.
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The AI Intervention
Technologies such as cloud computing and IoT have diffused widely, while the adoption of data-dependent technologies, such as AI, remains low. To ensure AI's benefits are widely shared while promoting sustainability, resilience, and inclusive growth, its adoption must expand rapidly across various sectors, opine experts.
A high rate of technology diffusion indicates greater market demand, increasing the potential for companies or institutions to successfully market their technology. AI technologies have transformed the ICT industry, accelerating task completion by automating workflows, analyzing vast amounts of data, and enhancing operational processes.
The race for AI supremacy is gaining momentum. The quick adoption of generative AI (GenAI) products such as ChatGPT, Grok 3, and now, DeepSeek, is significantly influencing the way people learn, interact, and live their lives. Additionally, global population growth and the mass expansion of global enterprises is expected to accelerate AI adoption.
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The Role of ICT
The backbone of the digital economy is hyperconnectivity, resulting in the growing interconnectedness of people, organizations, and machines due to the prevalence of the internet, mobile technology, and the Internet of things (IoT). The spread of ICT and global interconnectedness has the potential to accelerate human progress, bridge the digital divide, and develop knowledgeable societies.
As such, the ICT sector must focus on innovation and collaboration, and engage with all relevant stakeholders, comprising enterprises, the government, and non-governmental and civil society, to establish an impactful digital transformation journey.
According to the latest ITU data, half of all countries worldwide have adopted digital strategies covering multiple economic sectors. However, the development of digital policy and legal and governance frameworks across and within regions is markedly uneven. Only nine countries—fewer than 5% of countries worldwide—are currently equipped with mature national frameworks for digital markets geared towards the transformational development of digital economies and societies. Additionally, 30% of countries globally have made progress in establishing advanced national digital policies and legal and governance frameworks. As a result, four distinct groups can be identified, each at a different stage of digital development, and with varying levels of maturity in their national digital transformation strategies: countries with limited readiness, those that are transitioning, those that are advanced, and leading countries.
As such, to realize the full potential of ICT in digital transformation, investment in key technologies is warranted. Underinvestment in innovation will cost a nation’s development.
Some Notable Efforts
Open Gateway, the GSMA-led initiative in the telco industry aims to transform communication networks into programmable platforms, enable telcos to leverage their combined expertise and innovative technologies to drive digital transformation, and create new opportunities for operators, developers, and telecommunications companies. As of December, 2024, 67 operators have signed the Open Gateway pledge, expanding its representation across key global markets. The geographic distribution remains somewhat uneven, with the lion's share of growth concentrated in China and South and Southeast Asia. This development is significant given that the total revenue in the app market is expected to experience an annual growth rate of 7.48% through 2029, resulting in a projected market volume of USD 781.70 billion by 2029.
According to David Wang, Executive Director of the Board, Huawei, we are steadily entering into a mobile AI era, where the continued integration of 5G-Advanced and AI will transform traditional mobile businesses and create huge opportunities for the mobile industry, shaping new experiences, applications, and services. This will warrant high-performing programmable networks to deliver the goods.
“I believe that over the next decade, we will fully embrace mobile AI. The intelligent world is fast approaching, and 5.5G will serve as a cornerstone of future development.”
In this regard, equipment maker, Huawei, has continued to innovate and integrate 5G-Advanced connectivity and AI, working on both ‘Networks for AI’ and ‘AI for Networks.’ As part of its Networks for AI vision, Huawei will optimize spectrum resource usage and improve network performance and user experiences, while reducing network cost per bit. As for AI for Networks, Huawei plans to use digital sites and wireless AI agents to help carriers build Level 4 autonomous networks with higher quality and efficiency.
In November, 2024, China Unicom Beijing and Huawei officially launched the world's first large-scale integrated 5G-Advanced intelligent network, which is an ultra-large-scale commercial 5G-Advanced three component carrier (3CC) network that supports a range of innovative applications, such as immersive video, ultra-high definition (UHD) shallow compression, and low-altitude tourism, and so on. Moreover, self-provisioning and self-optimization functions have also been integrated into 5G-Advanced sites, underscoring today’s reality and future possibilities. Nokia and Ericsson, among others, are similarly pioneering significant innovations in 5G connectivity.
The ICT industry currently accounts for a considerable amount of the world's total power consumption. For telecom operators, electricity bills account for a sizable portion of their total operating costs. A large proportion of the vast amounts of energy consumed is unnecessarily wasted. Energy conservation is a gradual process that needs to be considered alongside other factors, such as the current network situation, evolution trends, and cost. To ensure economic and sustainable viability, all ICT operators must find the balance between implementing the right architecture and pursuing evolutionary strategies across the whole network, considering a range of dimensions, including the network, sites, and equipment.
In quantum computing, the arrival of Majorana 1, a new semiconductor capable of producing more reliable and scalable qubits than its predecessors, represents a game-changer in quantum computing. The transformative power of quantum technology will profoundly alter how industries operate, significantly accelerating productivity, economic growth, sustainability, and security. According to global management consultant, McKinsey, the market is expected to reach a USD 1 trillion valuation by 2030.
On the global connectivity front, subsea networks form the backbone of connectivity. Significant strides are being made to develop new routes to facilitate seamless connectivity across regions through advanced fiber optic cables. In recent news, Facebook’s parent company, Meta, has announced plans to build a 50,000-km subsea cable across the world. Project Waterworth will connect the U.S., India, South Africa, Brazil, and other regions, and will be the world's longest underwater cable project once completed.
While these projects excel in delivering industry-leading connectivity, safeguarding these networks from cybersecurity threats and efficiently managing decommissioned subsea projects resting on the ocean floor requires significant collaboration and innovation.
Need to Focus on Research Hubs
Given the rapid pace of technological advancement, there is an urgent need for research and innovation hubs to address the challenges associated with utilizing and deploying new digital technologies. Various developments are ongoing in technologies such as satellite-mobile broadband, artificial Intelligence, data analytics, 5G, blockchain, virtual reality (VR), and augmented reality (AR) across various industry applications.
Additionally, the skills needed to implement these new technologies require specialized training and skillsets and an innovative industry ecosystem is vital for the quick deployment of novel digital technologies. The current global digital uptake warrants policy initiatives that will help societies and economies accelerate their digital capacities through the introduction of innovative working methods, new business models, and more innovative products.
For instance, one area that is required for significant innovation is the data center industry. Primarily, data centers are energy guzzlers. As per the International Energy Agency (IEA) report, data centers account for about 1% of global electricity demand. The electrical demand for data centers varies from a few kilowatts to vast megawatts, depending on the size and location. Due to this range, data centers increasingly find themselves in the spotlight as the first point of call in the global decarbonization push. The pressure to make data centers sustainable is therefore high, and some regulators and governments are imposing sustainability standards on newly-built data centers.
In pursuit of sustainability, China successfully installed a groundbreaking underwater intelligent computing cluster off the coast in Hainan, marking a significant leap forward in sustainable high-performance computing (HPC). The system uses seawater as a natural coolant, significantly cutting energy consumption compared to land-based centers. This facility not only stores data but also functions as an underwater supercomputer capable of processing over 4 million high-definition (HD) photos within 30 seconds, equivalent to the simultaneous operation of 60,000 traditional computers.
Successful underwater data center experiments could pave the way for carbon-negative data center operations in the future. Boasting the ability to be naturally cooled by ocean waters and powered by renewable sources, underwater data centers have the potential to deliver faster processing speeds and enhanced security while setting a new standard for sustainable technology. Similarly, a study by Analysys Mason, commissioned by Amazon Project Kuiper's Europe Policy Team, found that satellite is a more cost-effective solution than Fiber-to-the-Home (FTTH) for the most rural 5-42% of households. This approach could save EUR 21-26 billion in fiber subsidies across the seven EU countries analyzed in the study. These are examples of areas where expansive research is warranted in order to augment the integrated efforts towards digital transformation.
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Advocacy and Global Collaboration
Communication and international cooperation play a vital role in developing international economic partnerships and supporting active technology investments in global markets and influential models in the government and private sectors.
Over the years, the ITU has been bringing together governments, industry leaders, academics, and civil society representatives under one roof with one purpose… To bring out the best in technology, while leaving no one behind. By collaborating with various countries, the ITU has provided expert-backed support encompassing cyberspace safety and security, skills development, and operational efficiency across the digital transformation stages.
Commenting on the future of global communications, and the role the ITU will play in shaping it, ITU Secretary-General, Doreen Bogdan-Martin, said, “Digital innovation is advancing at a rapid pace. Where past technologies took years, sometimes decades, to scale, emerging technologies like generative AI have reached millions of users in mere months.”
“Looking ahead, global communications will continue to fundamentally transform how we live, work, learn, and connect. And our shared digital future is about so much more than just technology; it’s about ensuring these advances serve all of humanity.”
Furthermore, in the digital age, importance of tech diplomacy in shaping a collaborative digital future is taking center stage. It is a key tool to promote countries’ and entities’ interests in the digital economy, foster innovation by joining resources, and adeptly navigate the complexities of the digital landscape.
The relevance of tech diplomacy will only grow in the upcoming years and its internationalization and expansion will become imperative to enable the emergence of common synergies and sustainable growth.
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Telecom Review’s Contribution
By converging diverse technologies, connecting people and businesses, and creating new opportunities for innovation, ICT continues to shape a more interconnected and digital future. To that end, Telecom Review has long upheld this vision by maintaining a strong presence in the Middle East, the Asia Pacific, and Africa, and, more recently, in the Americas and Europe, serving as a leading media platform covering telecommunications and ICT.
Through its iconic Telecom Review Leaders’ Summit, which takes place annually, Telecom Review has fostered a tradition of recognizing outstanding achievements that contribute to the growth of the ICT sector. Through its monthly e-magazines, webinars, and global presence at renowned ICT events across the world, its focus has always been grounded in fostering high-impact collaborations that drive meaningful growth across the ICT regions under its coverage.
Interestingly, the Mobile World Congress theme for this year, ‘Converge. Connect. Create.’, aims to foster the global intersection of social policy, business leadership, and digital innovation by gathering ICT leaders and decision-makers, aligning with the ITU’s vision to responsibly build and shape the future of both the people and the planet.
The future of the ICT sector depends on how well stakeholders can foster innovation, ensure equitable access, and develop robust governance frameworks.
Meet Telecom Review’s team in Barcelona, from 03-06 March, 2025, in meeting room 3052MR, hall 3.
