KEY ISSUES FOR DIGITAL TRANSFORMATION IN THE G20

In telecommunications, both fixed and wireless networks rely on passive infrastructure – such as ducts, cables,
masts and tower sites – and on active equipment components used to implement the technology, e.g. routers
and switches, control and management servers. Both fixed and wireless networks make use of fibre cables for
backhaul and backbone segments of network infrastructures. To connect local and national facilities to other
networks around the world, operators also need access to regional and international high-speed networks
(submarine fibre optic or satellites). Alongside infrastructure, an essential asset in wireless communications is
spectrum, which is needed for the delivery of wireless services. As spectrum is a scarce resource, government
policies in this area can have a significant influence on financing.
In G20 economies, there was a total of USD 262.5 billion invested in telecommunication infrastructure in 2015,
a slight decline from 2013 (USD 266 billion) (Figure 31). The overall average share of telecommunication
revenue devoted to telecommunication infrastructure among G20 economies was 18% in 2015. While
telecommunication infrastructure investment has remained relatively constant in the G20 as a whole over the
past several years, the share of revenue devoted to investment varies for any given country. This is because
the proportion can increase due to factors such as additional market entry or the introduction of a new
generation of mobile network infrastructure.
%
0.8
2015 2013
0.6
0.4
0.2
0.0
Note: Non-OECD G20 economy data are for 2014 instead of 2015.
Sources: OECD for OECD economies; ITU for the other G20 economies.
In recent years, there has been substantial investment by some countries in national broadband networks. For
example, Australia invested 26% of total telecommunication revenue in 2015. This reflects the development of
a national fixed broadband network and upgraded mobile infrastructure, the largest share of which was a
public investment. India invested 22% of telecommunication revenue in 2014 reflecting extensive investment
in 4G, including by a new market entrant, and the associated fibre backhaul. Meanwhile, countries such as
Korea and Japan – which have the highest penetration of fibre in fixed networks and well-developed mobile
broadband coverage – are devoting a relatively lower proportion of telecommunication revenue to
infrastructure investment. In these countries, future digital infrastructure investment is likely to be in
forthcoming 5G mobile networks.
Investment in digital infrastructures comes from various sources, primarily from the private sector. Much
infrastructure investment is financed by network operators, sometimes in partnership with other operators to