Europe Needs €475Bn Investment to Strengthen 5G - Regain Digital Leadership

Europe will require nearly €475 billion in investment over the next decade to upgrade its mobile networks and remain competitive in the global digital economy, according to industry analysis.

The report, produced by GSMA Intelligence, highlights that while this level of funding is necessary to achieve advanced connectivity standards, only around €270 billion is currently expected to be invested by operators. This leaves an estimated shortfall of about €205 billion.

The funding gap is seen as a major challenge for Europe’s ambition to compete with regions such as North America and Asia, where 5G deployment is significantly more advanced. For example, standalone 5G, considered the most advanced form of the technology, is already widely available in China and increasingly present in India, while Europe’s rollout remains limited.

Analysts point to weaker investment conditions in Europe as a key reason for the slowdown. Compared to leading markets, European operators generate lower returns per connection, while also facing declining revenues despite rising data usage. This reduces the amount of capital available for network expansion.

The report also notes that European telecom operators carry most of the financial burden for infrastructure development, contributing the majority of investment despite regulatory and market pressures.

To close the gap, the study suggests several structural reforms, including encouraging market consolidation, improving spectrum policies, and reviewing regulatory frameworks that may be limiting operator profitability and investment capacity.

Of the total investment gap, a large portion is required to expand 5G coverage along transport corridors such as roads, railways and waterways. Additional funding would be needed to extend full population coverage, strengthen network resilience, and support emerging technologies such as artificial intelligence-driven services.

Experts argue that without significant policy and investment changes, Europe risks falling further behind global competitors in next-generation connectivity and digital innovation.