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Home»Investments»ITU tasks countries on $1.6tr digital infrastructure investments
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ITU tasks countries on $1.6tr digital infrastructure investments

July 8, 20254 Mins Read


The International Telecommunications Union (ITU) has emphasised the importance of investment in digital infrastructure to support national development.
 
Deputy Secretary-General, ITU, Tomas Lamanauskas, in an article, stated that digital technologies have changed the way the world works – affecting everyone, everywhere.
  
He, however, said that digital access, dependent on Internet connectivity, remains extremely uneven, stressing that there is an opportunity to ramp up critical infrastructure projects and extend connectivity to all.
 
Lamanauskas said while the world may already seem hyperconnected, about 2.6 billion people – or one-third of humanity – are still offline today, stressing that billions more struggle with inadequate connections and unaffordable services.
 
According to him, this digital divide is not only about access to a Wi-Fi signal or a computer, it is about fibre optic cables, telecom towers and data centres – the hard infrastructure needed to extend digital benefits around the world.
 
He said the shortfall in digital infrastructure limits progress in public sectors like education and healthcare, as well as wider social and economic development.
 
ITU chief stated this ahead of the Fourth International Conference on Financing for Development, in Seville, Spain, saying the UN agency for digital technologies – has joined forces with multilateral banks and investment funds to mobilise money, along with policy action on digital infrastructure.
 
“The goal we will share in Seville is to connect everyone in the world by the end of the decade. It’s not going to be cheap. We estimate the required investments at $1.6 trillion by 2030 to give everyone meaningful connectivity: the level that allows all users to enjoy a productive online experience at an affordable cost,” he stated.
 
He said connecting the world calls for coordinated investment on an unprecedented scale. Public funding alone cannot do it. “But it can, with the right regulatory frameworks and enabling policies, unlock private financing on the scale required.
 
“In practical terms, we are talking about broadband speeds of at least 10 megabits per second (Mbps), enough to download a text file in a few seconds, a textbook in under half a minute. Latency should be below 50 milliseconds to support seamless voice or video calls and real-time navigation.
 
“For connectivity to be meaningful, every household would also need an adequate monthly data allowance and affordable access to a capable device,” he stated.
  
According to him, infrastructure is the critical backbone that makes this all work, saying it means fibre-optical connections in every city and 4G or better mobile coverage for at least 95 per cent of the population.
 
“Right now, less than half of the world reaches these basic levels. Even entry-level 3G or 4G broadband services remain unaffordable for most people in the least developed countries, landlocked developing countries, and small island developing states,” he stated.
  
Lamanauskas observed that infrastructure gaps mirror global socio-economic disparities, saying that the bulk of investment is needed in lower-middle- or low-income countries, where infrastructure deficits are acute and market conditions often deter private capital.
 
According to him, while key mechanisms exist, the Joint SDG Fund is driving transformational finance, e-commerce and digital ecosystem development – with a recent funding round set to benefit over 11 million people in 22 countries with online public services, digital skills training for micro-enterprises and more.
 
“Yet more must be done to overcome the world’s endemic connectivity challenge. Gaps can be mapped. But behind them are persistent obstacles like demand fragmentation, project execution, regulatory and political risks, and inadequate digital policies and strategies.”
 
“In Seville, ITU will present the Digital Infrastructure Investment Initiative (DIII), co-led with seven leading development finance institutions, bringing together industry leaders and experts to figure out the way forward.
 
“Brazil’s G20 presidency helped get this off the ground, and we continue picking up steam with the G20 led by South Africa this year. We are absorbing insights from infrastructure builders, hyperscalers, investors, and mobile and satellite operators in our unprecedented push for innovative solutions and blended financing.
 
“We are conducting studies on the barriers to network investments, from the Amazon basin to landlocked central Africa,” he stated.
 
Lamanauskas revealed the globe faces staggering gaps in knowledge and coordination, too. He said regulators, investors and other industry players tend to operate in silos, leaving the biggest investment challenges unaddressed.



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