en.Wedoany.com Reported - The "European Mobile Economy 2026" report released by the Global System for Mobile Communications Association (GSMA) shows that in 2025, the mobile industry's contribution to the EU economy grew by 14% year-on-year, reaching €1.15 trillion, equivalent to 6.1% of EU GDP, compared to 5.5% and €1.01 trillion in 2024.
The report indicates that this contribution primarily stems from productivity improvements, with approximately €820 billion coming from users accessing information, accelerating communication, and enhancing process efficiency through mobile phones and mobile internet applications. GSMA predicts that by 2030, the industry's contribution to EU GDP will exceed €1.6 trillion. GSMA emphasizes that the role of the mobile industry extends far beyond basic connectivity, providing the foundational support for much of Europe's digital ecosystem—from e-commerce and remote work to online education, digital healthcare, and data-driven services.
Patrick O’Donovan, Ireland's Minister for Culture, Communications and Sport, stated that digital connectivity is crucial for the functioning of the modern world. He specifically noted that Ireland's geographical characteristics make mobile operators play a key role in supporting the economy and society. The report is released as Ireland prepares to assume the Presidency of the Council of the European Union during a period of critical regulatory debates for the industry. O'Donovan argued that creating conditions for the European digital ecosystem to thrive is a priority for the next six months.
Vivek Badrinath, Director General of the GSMA, pointed out that the importance of mobile technology to Europe's economy and employment is increasingly evident. With one euro out of every 16 euros generated in the EU being related to the mobile industry, this fully demonstrates that connectivity infrastructure has become a catalyst for European growth.
In terms of employment, by the end of 2025, the mobile industry supported 2.4 million jobs in the EU, with 1.3 million directly from the mobile ecosystem and 1.1 million from economic activities in related industries. In Ireland, according to data from the Commission for Communications Regulation (ComReg) and Ibec, the industry employs 24,000 people, with total mobile connections nationwide exceeding 10.5 million. Additionally, connectivity enables 25% of Ireland's workforce to work remotely, which is particularly important in less populated areas.
Nicola Cooke, Director of Telecommunications Industry Ireland, the telecom industry association under Ibec, emphasized that digital connectivity is the backbone of Ireland's economy and society. She stated that thanks to public and private sector investments in mobile and broadband infrastructure, nearly one million people can work from home. Cooke also noted that over the past eight years, network data traffic in Ireland has grown by 460%, while association members invested €5 billion during the same period. This growth has driven benefits such as remote work, online education, and telemedicine, but also requires continued infrastructure strengthening.
Despite its significant economic weight, GSMA warns that Europe still lags behind leading markets in terms of network quality and advanced deployment. By the end of 2025, 5G accounted for only 43% of mobile connections in Europe, although it is expected to become the dominant technology at some point this year. The fundamental issue lies in investment. Since 2021, EU operators have invested over €140 billion in mobile networks. However, analysis by GSMA Intelligence estimates that Europe will need an additional €475 billion by 2035 to complete its digital transformation, with only €270 billion expected to be available, leaving a gap of €205 billion.
This investment gap is partly explained by market conditions. Capital expenditure per user in Europe is €35, only half of the €70 that leading market operators can invest to widely deploy standalone 5G (5G standalone). GSMA believes this reflects an unattractive regulatory environment, characterized for years by excessive regulation and difficulty in achieving scale. Two debates are particularly important in the coming months: the Digital Networks Act and the revision of merger guidelines. These initiatives could open the door to a more modern framework, thereby improving investment conditions and fostering the emergence of larger operators in this still highly fragmented European market.
Badrinath warned that political decisions made during Ireland's EU Presidency and throughout 2027 will determine the extent to which Europe can strengthen the role of mobile technology in modern society, as well as the ability of Europe's digital ecosystem to grow and compete with major international markets. In Ireland, the debate comes with other regulatory challenges, such as the Digital Networks Act and the Cybersecurity Act 2. Cooke stated that TII will work with the government, regulators, and other stakeholders to overcome these challenges, enabling the industry to continue investing in infrastructure deemed critical to the nation.
The report presents a dual interpretation. On one hand, Europe's mobile industry is already a top economic engine, generating jobs, productivity, and public revenue, with the mobile ecosystem contributing €110 billion in taxes in 2025. On the other hand, its ability to sustain future growth depends on whether Europe can address the investment gap, which could cause it to fall further behind leading markets. With a mobile industry worth over €1 trillion, millions of connectivity-related jobs, and an economy increasingly reliant on digital networks, the report argues that the question now is whether the regulatory framework can transform this foundation into technological leadership, or whether the region will continue to develop below its potential.
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