23 Executives from Europe’s largest telecommunications groups and associations, such as Connect Europe or GSMA, have signaled their serious concern in an open letter to EU Commission President Ursula von der Leyen (CDU). This concerns the slow and hesitant approach of the Brussels government institutions to urgently needed digital reforms. In particular, the Digital Networks Act (DNA), which has been announced for a long time, is taking too long, according to them.

The heads of companies such as Deutsche Telekom, Vodafone, Orange, and Telefónica are calling for: Less regulation, more “European Champions” who can succeed in international competition.

Europe, once a leader in the telecommunications sector, is now lagging in terms of economic growth, security, and innovation promotion, the CEOs lament. This is primarily due to the digital fragmentation and value-destroying policies of recent years, while the USA and Asia have leveraged massive capital and economies of scale.

The Industry is Divided

Despite investments of over 500 billion euros by European mobile operators in the past ten years, a market with over 100 providers in this area across 27 member states is a structural obstacle, it is stated. Without bold measures to achieve economies of scale, European companies cannot keep pace with the investment speed of non-European competitors.

Only 2 percent of Europeans are making calls or surfing via 5G standalone networks, the signatories complain. The USA and China are already significantly further ahead with 25 percent and over 77 percent, respectively. This means significant economic and social opportunities are being missed, especially in industrial data and the use of AI. Other European industries, such as automotive or FinTech, also risk faltering without first-class connectivity for the research, scaling, and application of new telecommunications services.

The DNA is crucial for securing Europe’s sovereignty, security, and values, the managers emphasize. The Commission must finally create a greatly simplified regulatory framework to increase investment capacities in all relevant industrial sectors. Industry giants, Connect Europe & Co. already exerted comparable pressure on Brussels over a year ago and again in July, albeit with a smaller group at the time. Challengers to the established players, on the other hand, fear dramatic consequences for competition and fiber optic expansion in Europe if the DNA points in the wrong direction. The regulation of former monopolies must not be relaxed.

(nie)

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.