The GSM Association (GSMA) has reportedly revealed the imbalances in the digital sector having social media companies and telecommunication operators as its case study. The GSMA’s annual Internet Value Chain report that telecommunication operators’ dividend for provisional internet infrastructure is beneficiary to the other fraction of the economic players such as social media companies, including, Meta (Instagram, WhatsApp, & Facebook), Netflix, Google, Snapchat, etc.
The GSMA’s internet value Chain report poses a check and balances analysis of the digital sector — an eye-opener for the fraction of the socio-economic actors benefitting lesser than their investments. GSMA’s report tackled the repercussions of regulatory negligence to balance the economic indifference in the digital sector. Other digital-inclined parastatal are likely to experience lesser revenue income with the presence of social media operators in the economy.
GSMA’s internet value chain reported the vulnerability of traders in the global digital economy at the expense of social media operators existing as domineering investors. The GSMA tends to be biased and focused on telecommunication operators and their significance in establishing digital infrastructure for internet connectivity.
GSMA’s Chairman José María Álvarez-Pallete said the Internet Chain has reportedly gained valuable collection posed as diversified digital-related streams of gaining surplus revenue income. Still, telecommunication providers lead a significant role in serving accessible broadband connection infrastructure to other economic investors such as firms, merchants, and customers.
“The internet connects 4.6 billion people and drives the global economy. It is transforming business models, unlocking new opportunities, and uplifting communities across the world,” Pallete said.
It’s a no-brainer that the Internet chain growth is valuable in line with all the beneficiaries of the digital economy — returns of investment (ROI) are distributed accordingly while social media operators earn an intimidating ROI due to their domineering presence in the economy.
According to the GSMA’s report, telecommunication providers are meant to be titans in the digital sector for selling vital technology which turns out to be otherwise. Pallete disclosed “some sectors in the internet value chain thrive, the demands of investing in the infrastructure those sectors rely on for growth are depriving network operators of their actual earnings. We welcome the growing recognition of this issue by policymakers, and as the internet-based economy expands across all sectors over the next decade.”
GSMA’s report revealed the internet value chain has gained times revenue income per half a decade IVC analysis. The current IVC status is valued at $6.7 trillion in 2020 higher than the previous $3.3 trillion GSMA recorded in 2015.
The overall analysis by digital service providers gained a 19% revenue income per annum. Telecommunication providers accomplished a 27% revenue income aside from the IVC statistics and 80% of this data traffic is pushed by global digital video streams.