The GSMA has warned that climate-related damage to mobile telecommunications infrastructure could have a significant financial impact on operators. By 2050, the annual cost of damage could exceed $3 billion, nearly double the current losses. This is due to severe storms and floods increasingly threatening network infrastructure. The GSMA's report, Futureproofing Connectivity: Climate Risk and Resilience in Telecommunications, highlights the need for operators to strengthen their infrastructure against extreme weather.
Currently, mobile operators incur approximately $1.7 billion annually in costs to repair and replace cell-site infrastructure damaged by severe weather. Storms account for around $1 billion of these annual losses, which could rise to $2.4 billion by 2050. The GSMA analyzed over 50 countries and found that major storms and floods coincided with an average of about 150 telecommunications outages annually between 2022 and 2024. These outages directly affected nearly 215 million service users each year.
The rising costs are putting pressure on telecommunications operators to balance strengthening their infrastructure against extreme weather with maintaining investment in network expansion and connectivity. The GSMA's financial projections cover damage to mobile cell sites but exclude losses involving fixed networks, wildfires, extreme heat, lost revenue, service restoration, and higher insurance premiums. The association emphasizes that building resilience will require coordinated action among operators, governments, and other infrastructure providers.
According to John Giusti, the GSMA's chief regulatory officer and president of the GSMA Foundation, severe weather is already costing the industry billions of dollars, and those costs are set to rise substantially. He stresses that operators have invested in backup power, redundant connections, emergency roaming arrangements, and rapid-response capabilities. However, these measures cannot fully address risks arising from infrastructure outside the telecommunications industry's control.
Power supply is emerging as a major vulnerability for telecommunications networks. Severe weather frequently disrupts mobile services through electricity outages rather than direct damage to network equipment. This highlights operators' dependence on energy infrastructure, transport networks, and fuel supplies. The GSMA has introduced five policy principles urging governments and regulators to adopt flexible, investment-friendly approaches to network resilience.
The GSMA's recommendations include outcome-based regulation, incorporating resilience into network design, consulting operators before imposing new obligations, coordinating emergency planning across infrastructure sectors, and ensuring transparent communication during disruptions. The association also calls for regulatory certainty and proportionate resilience requirements. It warns that obligations exceeding operators' existing risk-based investment plans may require government incentives, funding, or cost-recovery mechanisms.
The importance of mobile networks as essential infrastructure for businesses, emergency services, and public institutions cannot be overstated. Prolonged outages are a growing economic and national security concern as climate-related risks intensify. The GSMA's report emphasizes the need for a coordinated approach to addressing these risks and ensuring the resilience of mobile networks.
Key points
- Mobile operators currently incur approximately $1.7 billion annually in costs to repair and replace cell-site infrastructure damaged by severe weather.
- The GSMA warns that climate-related damage to mobile networks may cost operators over $3 billion annually by 2050.
- Building resilience will require coordinated action among operators, governments, and other infrastructure providers.
