The memory chip shortage, fueled by the artificial intelligence boom, is hindering efforts to expand internet access around the world, according to the GSMA’s director general as reported by AFP.
UN estimates show that around 2.2 billion people, nearly a quarter of the global population, were still not connected to the internet by 2025.
However, only 4% of the world’s population live in areas completely lacking mobile coverage, according to GSMA figures, which represent over 1,000 operators and companies in the sector.
For GSMA’s CEO Vivek Badrinath, the surge in smartphone prices caused by the global memory chip shortage is a major setback in bridging this digital divide.
“The situation is very tense” and “many manufacturers have reduced their efforts on entry-level devices,” he said in an interview before an event in Tokyo.
“The risk is that there will be fewer entry-level devices available, which will be particularly harmful in Africa,” he added.
The rapid construction of data centers dedicated to AI has driven up the demand for high-bandwidth memory chips, crucial for enabling systems to handle vast amounts of information.
Chip manufacturers, prioritizing the more profitable AI sector, are reducing the production of more traditional components used in consumer electronics like phones and laptops, resulting in price increases for these devices.
Chey Tae-won, president of the South Korean conglomerate including chip giant SK hynix, told journalists at a technology conference in San Jose in March that this shortage is likely to persist until 2030.
If every individual could access the internet via their mobile phone, the global GDP could rise by $3.5 trillion by the end of the decade, with digital tools and information access boosting business profitability, according to GSMA.
Satellites?
The organization claims to be “engaging with all sector players” to address the issue, including lobbying policymakers to reduce taxes or facilitate funding, encouraging smartphone recycling, as Mr. Badrinath pointed out.
Meanwhile, the rapid expansion of satellite communication networks in low Earth orbit promises to offer connectivity to virtually every point on the globe in the long term.
The American giant Amazon announced on Tuesday its intention to acquire satellite operator Globalstar, another step towards “internet from space.”
This move confirms Amazon’s determination to establish itself as a major player in satellite communications, despite the advancements made by Starlink, the brand of Elon Musk’s SpaceX group.
Despite these significant advances, most users are expected to only use satellite communication “occasionally,” according to Vivek Badrinath.
“Most of the time, you will still be at home, connected to Wi-Fi or outdoors on your mobile network. And the satellite doesn’t work very well indoors,” he said.
The GSMA’s director general also emphasized the need for satellite companies offering cross-border services to comply with existing regulatory frameworks for conventional mobile internet.
“It is crucial that policymakers define policies ensuring that rules on privacy or illegal interceptions are also respected by satellite operators. This is an area we are working on with them,” he concluded.
