North America mobile industry fuels $1.6T economic growth

A new report from the GSMA has revealed the immense economic growth power of the mobile industry across North America, with its contribution nearing $1.6 trillion in 2024. This figure represents five percent of the region’s total GDP and shows how valuable mobile technology is in driving innovation and growth.

With nearly 320 million people connected to the mobile internet and approximately 60 percent of them now using 5G, the region is solidifying its position as a global technology leader. The direct contribution from the mobile ecosystem alone amounted to $420 billion last year, supporting 2.6 million jobs directly and indirectly.

Looking ahead, the economic impact is forecast to more than double, projected to reach $3.7 trillion, or over 10 percent of GDP, by 2030. This growth is expected to be fuelled by continued advancements in 5G, the IoT, and AI, which are enhancing productivity and creating new efficiencies across all sectors of the economy.

Monetising operators’ huge mobile network investments

After investing over $300 billion in their networks between 2019 and 2024, mobile operators in North America are now keenly focused on monetising their 5G infrastructure. The most immediate success story has been 5G fixed wireless access (FWA), which is rapidly becoming a major revenue stream. The US now stands as the world’s largest 5G FWA market, with 11.6 million connections at the end of 2024. This number is expected to surpass 25 million by 2030, capturing nearly 20 percent of American households.

While generating a sustained price premium in the consumer mobile market has proven more challenging, operators are innovating. Strategies include introducing speed-based tariffs and bundling a wider range of value-added services, such as digital security and cloud storage, to appeal to consumer demands.

For the enterprise sector, the rollout of 5G standalone (SA) networks is providing new opportunities. This advanced architecture enables capabilities like network slicing, which allows for dedicated, optimised connectivity for specific applications, from supporting first responders to enhancing video calling and improving connectivity at large sporting venues.

Pioneering the future of mobile connectivity in North America

North America continues to be a hub of technological leadership, particularly in shaping the future of network architecture and satellite communications.

The region is at the vanguard of direct-to-device (D2D) satellite services, which promises to extend mobile coverage to the most remote locations. Recent months have seen a flurry of commercial launches from major operators like T-Mobile US, AT&T, and Verizon, partnering with satellite providers such as Starlink, AST SpaceMobile, and Skylo to offer services ranging from emergency messaging to basic text capabilities.

In parallel, the region is driving innovation in the radio access network (RAN). Companies in North America have been central to the development of Open RAN, a movement to create more flexible, virtualised, and interoperable mobile network infrastructure.

AT&T has made one of the industry’s biggest commitments with a potential $14 billion deal with Ericsson to have 70 percent of its network traffic running over Open RAN by 2026. This shift isn’t just about changing vendors; it is about supporting an ecosystem where AI and automation can dynamically optimise network performance through platforms like the RAN Intelligent Controller (RIC).

Confronting a rising tide of cyber threats

As reliance on mobile infrastructure grows, so does its appeal as a target for cyberattacks. The report notes that recent cyber-espionage campaigns, such as Salt Typhoon and Volt Typhoon, have successfully compromised telecoms operators and other critical US infrastructure.

In response, the mobile industry in North America and beyond is reinforcing its defences through a multi-layered security approach. Operators are implementing measures such as zero-trust architectures, extensive employee training, and sophisticated risk management protocols.

Collaboration is proving essential. The industry is actively participating in threat intelligence sharing communities like the GSMA’s Telecommunication Information Sharing and Analysis Centre (T-ISAC) and the Canadian Cyber Threat Exchange (CCTX). Operators are also strengthening end-user security by rolling out new network APIs through the GSMA Open Gateway initiative, designed to combat fraud like unauthorised SIM swaps.

Shaping a sustainable mobile industry

Beyond the economic and technological advancements, North American mobile operators are making progress in addressing societal challenges. The industry is a leader in climate action, having halved its operational emissions per connection between 2019 and 2023, largely through major investments in renewable energy.

The circular economy is also gaining momentum. Smartphone trade-in programmes are particularly popular in the US, which boasts a trade-in rate of 37 percent, far exceeding that of other developed nations. These initiatives not only offer commercial benefits but also reduce e-waste by extending the lifespan of devices.

To ensure no one is left behind, operators are also spearheading programmes to enhance digital skills. Initiatives like AT&T’s Connected Learning Centers, T-Mobile’s Project 10Million, and Telus’ Telus Wise workshops are providing critical resources, connectivity, and training to millions of students and low-income individuals, breaking down barriers to mobile internet adoption.

Supporting mobile innovation and economic growth in North America

Sustaining this momentum requires a forward-looking and supportive policy environment. The report emphasises why effective spectrum policy is required to prepare for the demands of 6G and beyond. While the US and Canada have been leaders in 5G spectrum allocation, securing new mid-band spectrum will be vital for future applications like augmented reality and holographic messaging.

Regulatory simplification is another key enabler. The FCC’s “Delete, Delete, Delete” initiative, aimed at removing outdated rules, has been met with broad support from the industry. Reducing regulatory burdens is needed to accelerate infrastructure deployment, foster innovation, and maintain North America’s competitive edge in the global digital economy.

With a policy framework that encourages investment, North America’s mobile industry will be able to continue delivering transformation in society and the economy for years to come.

See also: How the 6G rollout will learn from 5G’s mistakes

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Tags: 5G, connectivity, economy, gsma, mobile, monetisation, networks, north america, Operators, regulation, research, satellites, spectrum, study, sustainability, telecoms, usa