CCIA: European Providers Aren't 'Lagging Behind' Because of Regulation
A new study by the Computer & Communications Industry Association questions whether European carriers really have been hampered by EU regulation. European providers “have promoted this narrative to justify radical changes in European regulation,” it argued. “Europe, they say, is lagging behind in digital investment even though telecom operators, and particularly incumbents, have been investing heavily in 5G and FTTP [fiber-to-the-premises] coverage.”
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At the Mobile World Congress in Barcelona last year, CEOs including Deutsche Telekom's Tim Hottges warned against the crippling effects of European regulation (see 2402260054). “We are dwarfed here in Europe compared to the hyperscalers, compared to the internet ecosystem from the U.S.,” Hottges said at the time.
Europe isn’t “lagging behind” and is “very largely on track” to meet the European Commission’s 2030 connectivity targets of 100% 5G mobile coverage and 94% very-high-capacity network coverage, the CCIA report said. “The gloomy narrative offered by telecom incumbents does not conform to the reality of the market.”
“In some areas, such as 5G Standalone, the benefits are unclear and hence the need to keep up with other countries is weak,” the study said. A few countries, including Germany and Italy, have brought down the overall averages, but these variations occur “because operators make different business decisions when it comes to FTTP based on national market circumstances.”
CCIA said the commission “has no reason to concede to demands by telco CEOs” as they consider the proposed Digital Networks Act, which would harmonize regulations by EU members. “The findings challenge years of aggressive lobbying by incumbent telcos who argue that EU regulation must be overhauled to rescue their ‘faltering’ sector,” CCIA said. “Instead, the report provides a positive financial outlook, showing that costs in telecoms are falling and revenues rising.”