The memory chip shortage, driven by the boom in artificial intelligence, is hindering efforts to expand internet access worldwide, according to the director general of GSMA, the global association of telecom operators, as reported by AFP.
Context: The article discusses the impact of the memory chip shortage on efforts to provide internet access globally.
Fact Check: The article mentions that around 2.2 billion people were still not connected to the internet in 2025, despite efforts to increase connectivity.
According to the United Nations, about 2.2 billion people, nearly a quarter of the global population, were still unconnected to the internet by 2025.
GSMA, which represents over 1,000 operators and companies in the sector, noted that only 4% of the global population lives in areas with no mobile coverage.
Vivek Badrinath, the head of GSMA, highlighted the impact of rising smartphone prices due to the global memory chip shortage on reducing this digital divide.
Badrinath expressed concern that the shortage might lead to fewer entry-level devices, particularly affecting Africa.
The surge in data center construction dedicated to AI has increased demand for high-bandwidth memory chips essential for handling vast amounts of data.
Memory chip manufacturers prioritizing the more profitable AI sector are reducing production of components used in consumer electronics, leading to price hikes for devices.
Chey Tae-won, president of the South Korean conglomerate including chip giant SK hynix, forecasted that the shortage could persist until 2030.
The GSMA estimates that global GDP could increase by $3.5 trillion by the end of the decade if everyone could access the internet through their mobile phones, boosting business profitability with digital tools and information access.
The organization is engaging with stakeholders to address the issue, including advocating for policy changes to reduce taxes, facilitate financing, encourage smartphone recycling, and promoting communication satellite networks in low Earth orbit to provide global connectivity.
Amazon announced plans to acquire satellite operator Globalstar, signaling its move towards “internet from space.”
While Starlink, by SpaceX’s Elon Musk, leads the satellite communications race, Amazon aims to establish itself as a major player in the sector.
Despite advancements, most users are expected to use satellite services only occasionally, with limitations on indoor use, as noted by Vivek Badrinath.
GSMA emphasizes the importance of satellite companies complying with regulatory frameworks for traditional mobile internet to ensure privacy and legality standards are upheld.
The director general underscores the need for policymakers to define policies that ensure satellite operators comply with rules governing privacy and illegal interception, highlighting ongoing collaboration in this area.
