The impact of ICT investmentson the digital economy About this report For well over two decades, studies havebeen produced that highlight the linkagesbetween ICT investments and a numberof key indicators, such as economic Driving development: the impact of ICTinvestments on the digital economyisa white paper supported by GSMA Intelligenceand Huawei, and produced by EI Studios, This paper explores the impact ofinformation communication technology (ICT) Post-covid, the global economy is experiencinga moment of transition as companies,governments and whole societies reorganisearound the growing importance of digital Blair Chalmers,managing director ofinfrastructure innovations at Marsh McLennan Mohammad Azmal Huda,chief productand technology officer at bKash Peter Jarich,head of GSMA Intelligenceat the GSMA The report draws on a global survey of 500individuals, conducted in December 2022, ofwhich 400 are company executives, 50 arepolicymakers and another 50 are institutional Tay Yeow Lian,managing director,Networks, Consumer Singapore at Singtel Atsuko Okuda,regional director of theInternational Telecommunication Union (ITU) Ceyhun Özata,chief corporate sales officer,Turkcell Kushe Bahl,partner at McKinsey & Company Audrey Plonk,head of the Digital EconomyPolicy Division at the Organisation for Economic Enrique Blanco,global chief technologyofficer, Telefonica Pau Castells,head of economic analysisat GSMA Intelligence Anna Yip,chief executive officer,Consumer Singapore at Singtel The outsized growthof the digital economy hasonly been emphasisedby the covid-19 pandemic,which accelerated thepace of digital adoptionto breakneck speeds. Table of contents Introduction: The digital economy is more relevant than everUnlocking growth in the digital economyGSMA Intelligence Perspective:Growth in ICT investments and penetration over timeIdentifying what ICT infrastructures matter mostGSMA Intelligence Perspective:Connectivity at the core of digitisationBarriers to ICT investment in the public and private sectorsGSMA Intelligence Perspective: Introduction:The digitaleconomy is more The history of the digital economy is a story ofconstant evolution, shifting and changing asthe internet has grown from a niche technology Digital drives economic growth While prior definitions of the digitaleconomy tended to refer to technologyand the tech industry as separate fromother sectors, this is no longer the case.Today’s digital economy spans an ecosystem A broad sweep of the history of the internet revealsa number of pivot points, from the release ofwireless internet, cable broadband to the inventionof mobile connections. With each technological Digital technologies have unlocked innovationopportunities for both private and public Peter Jarich, head of GSMA Intelligence atthe GSMA, an industry group representingmobile network operators, notes that digital Digitalisation is reshaping industries, creatingnew opportunities and changing the way welive and work. Today, two-thirds of the world’s Productivity growth that will come fromthe digital sector will drive economic growthfor the next few decades. In many countries,growth in the digital economy is seen to Digital has evolved into afoundational aspect that Peter Jarich, head ofGSMA Intelligence new value streams. One example can beseen in terms of how digital technologiesare introducing new revenue streams fortelecommunications companies, Kushe Bahl, “For all industries, being digitally progressiveis the only way to be more competitive,”says Blair Chalmers, managing director The outsized growth of the digital economyhas only been emphasised by the covid-19pandemic, which accelerated the pace ofdigital adoption to breakneck speeds. Through “Many telcos are creating business modelsto capture opportunities beyond the pipeby building platforms that take advantage Digital drives productivityand resilience Digital technologies are helping organisationsbuild more resilience in an increasinglyuncertain world. By leveraging data analyticsand predictive models, digitalised firms In our survey, digital adoption(15%), accelerating innovation(13%) and changing consumption “If you think about the application of the IoT,artificial intelligence, automation, togetherwith connectivity in many manufacturingplants, we are seeing huge boosts in Governments, for example, are utilisingtechnologies to build digital governmentinitiatives that enhance or ease accessto public services for their citizens, while In our survey, digital adoption (15%),accelerating innovation (13%) and changingconsumption patterns (11%) are top-rankeddrivers of digital transformation in economies For businesses, digital is not only bridging thegap between their current models and thechanging demands of a consumer base that In your opinion, what are the top drivers of increased digital transformation in economiestoday? Please rank up to 3, where 1 is the most important driver. (Company exec