Europe’s €1.15tn mobile economy masks €205bn regulatory hole

GSMA says the EU mobile industry contributed €1.15tn to the economy in 2025, equal to 6.1% of GDP, while supporting 2.4m jobs and generating €110bn in taxes. The same report points to a €205bn investment gap by 2035 and argues that overregulation and limited scale are holding back network quality, 5G standalone rollout and AI-era capacity.

• The sector supported 2.4m jobs and generated €110bn in taxes
• Funding gap may slow 5G standalone and AI-era capacity

The fact

GSMA reports that the mobile industry contributed €1.15tn to the EU economy in 2025, equal to 6.1% of GDP and up 14% year on year, while supporting 2.4m jobs and generating €110bn in taxes. Productivity gains accounted for €820bn. The report also says Europe needs €475bn in mobile investment by 2035, with only €270bn expected, leaving a €205bn gap. Capex per user sits at €35, half the level of leading connectivity markets. GSMA says 5G represented 43% of connections at end-2025, while data traffic has grown over 550% since 2018 and is expected to rise another 75% by 2030.

The Assessment

The report’s core signal is that Europe’s mobile sector is economically vital but not being funded like critical infrastructure. Demand is not the weak point: productivity gains, traffic growth and rising 5G use all show that networks are carrying more economic value. The weakness is the investment environment. GSMA is arguing that overregulation and limited operator scale are holding back network quality, 5G standalone rollout and AI-era capacity. For BTW readers, this makes regulatory reform a direct market risk for pricing and digital sovereignty.

What to Watch

Watch whether Ireland’s EU presidency, the Digital Networks Act and merger guideline review can narrow the €205bn gap, enable consolidation and push EU 5G connections beyond 50% in 2026.

Also read: AI data centre capex tops $1tn despite weak returns

Also read: New York tests data centre load rules