Page 8 - SAMENA Trends - March-April 2025

SAMENA COUNCIL ADVOCACY SAMENA TRENDS

SAMENA Council On

Network Funding

During MWC 2025, SAMENA Telecommunications Council Steers High-
Stake Discussion on Sustainable Network Funding and Digital Infrastructure

Development

At the Mobile World Congress (MWC) 2025 in Barcelona, SAMENA discussion today has been a part of a series of deliberations that
Telecommunications Council contributed to a critical discussion SAMENA Council has been privileged to lead over the years, includ-
on the future of network funding; a key subject in which the Coun- ing within the UN Broadband Commission. This discussion points
cil, represented by CEO & Board Member, Bocar Ba, has been active strongly to the need for a more equitable, forward-looking approach
in driving consensus since 2021. At MWC Barcelona 2025, Bocar to funding digital infrastructure. Policymakers, regulators, financial
Ba, who is also Chair of the International Telecommunication institutions, digital service providers, Telecom Operators, and all
Union’s (ITU) IAGDI-CRO private-sector representative platform, those having direct stake in the digital future, must act to build an
moderated the panel titled “Is It Time for Big Tech to Pay Their Fair environment where each stakeholder plays a contributing part in
Share? The Case for Backing Telecom Networks.” The panel also sustaining the infrastructure our digital economies rely on.” The
featured Denis O'Brien (Digicel), Lauren Ballerin Cereza (Member panel discussion was deeply informed by insights from Vodafone’s
of the European Parliament, Spain), and Shahid Ahmed (NTT). The recent report, “A Framework for Responsible Use of Networks,”
SAMENA Council-led discussion delved into the rapid growth of which has brought to light several challenges. Chief among them is
digital services, driven by AI, cloud computing, streaming, and the the unsustainable growth of data consumption driven by AI,
Internet of Things (IoT), and how this creates pressures on tradi- streaming, and advertising-based business models, which are
tional investors, i.e., Telecom Operators, and on digital service pro- pushing current networks to their breaking point. Telecom Opera-
viders as well as financial institutions to unite forces in building tors in many parts of the world, including in the markets of the
future digital infrastructure.“The discussion made it clear that a SA-ME-NA region as well as in Europe, are facing the dual chal-
new, shared responsibility model for network funding is long over- lenge of limited resources and a rapidly growing demand for digital
due,” said Bocar Ba. “As policymakers, regulators, and industry connectivity. As Vodafone’s report highlights, Operators’ difficul-
leaders, we must work together to create an environment where ties and network inefficiencies continue to magnify due to multiple
sustainable financing, regulatory harmonization, and industry con- factors, including sustainability challenges in infrastructure invest-
solidation are prioritized. Particularly in Europe, fragmented poli- ments, regulatory frameworks, and an overall lack of flexibility to
cies and outdated funding models are stifling innovation and manage traffic effectively. Operators require other stakeholders to
putting the future of connectivity at risk.” The discussion, focused contribute their share of financial resources to help sustain digital
on the urgent need for shared responsibility in network funding, a communication networks. The panel discussion also explored
concept SAMENA Council has championed over the years through funding solutions that have worked well in other parts of the world,
its leadership in developing consensus on broadband infrastruc- such as South Korea, Peru, and the U.S. These models, which
ture development through innovative funding approaches. “Our include negotiated traffic contributions, public-private partner-
ships, and incentivized investment structures, provide a roadmap
for addressing the growing imbalance in network funding. The dis-
cussion during MWC25 helped build the case for urgently transi-
tioning from fragmented funding models to a shared financing
responsibility model. Moreover, the discussion also highlighted
how Europe has the opportunity to redefine the future of its digital
infrastructure by implementing new infrastructure models that cat-
alyze new digital growth and innovation in the European digital
ecosystems. SAMENA Council is of the view that there is a dire
need for a shared, global approach to funding digital infrastructure,
particularly in various part of the SA-ME-NA region, including the
Arab States. Considering that the majority of the world's digital traf-
fic is being carried by Telecom Operators, while billions of people
still remain excluded from the digital economy, it is essential to
build a truly inclusive digital future. This necessitates rethinking
and implementing new broadband funding approaches around the
world.

8 MARCH-APRIL 2025