ETNO Calls for EU Telecom Policy Overhaul to Improve Connectivity

ETNO Telecom

ETNO, the organization representing Europe’s top telecom operators, is calling on the new European leadership to promptly enact significant changes to telecom and competition policies. The entity has emphasized the need to enhance the connectivity ecosystem.

In its feedback based on the European Commission’s consultation regarding the White Paper titled, “How to Master Europe’s Digital Infrastructure Needs?”, ETNO reaffirmed that connectivity is vital for ensuring Europe’s economic competitiveness and security. ETNO stressed the importance of well-crafted regulations that encourage investment and foster innovation.

Related: GSMA and ETNO Welcome Announcements Regarding the Future of Telecom Policy

 

Europe, despite being one of the most digitized economies and societies worldwide, has seen a significant decline in its share of global revenue in the ICT market over the past decade. In 2013, the EU held 21.8% of the market, but by 2022, this share had plummeted to 11.3%, while the US’s share rose from 26.8% to 36%, as confirmed by the European Union. This decline reflects Europe’s lag behind global competitors in terms of innovation and investment in the connectivity sector.

Also Read: EU Telecom Industry Demands Fair Contribution From Tech Giants

 

ETNO’s Connectivity Paradigm

The upcoming 12 months are crucial for laying the groundwork to enhance Europe’s connectivity, which is vital for the benefit of European citizens and businesses alike. Updating and simplifying current regulations in a timely manner could have a transformative impact on the entire European economy and society.

ETNO proposes enhancing Europe’s connectivity ecosystem by prioritizing the following pillars:

 

Forming a Unified EU Digital Market

Europe must overcome digital and telecom fragmentation by creating a unified, pan-European market with harmonized rules. This will enable seamless service offerings, foster innovation, and promote synergies across borders. Reviewing the EU Merger Regulation is essential to achieve adequate scale, both at European and national levels and to enhance competitiveness in the global digital economy.

 

Investing in Secure, Resilient Networks

Every EU citizen deserves top-tier connectivity. Given market dynamics, it’s time to overhaul the EU regulatory framework to spur rapid investment in gigabit networks. Moving away from

SMP, stakeholders should prioritize general competition law and symmetrical rules, with ex-ante obligations as exceptions. Spectrum policy should boost 5G and prepare for 6G, while further harmonization and a new EC notification process are needed to ensure pro-investment conditions for licenses and renewals EU-wide.

 

Promoting Modern, Fair Innovation

Technology has transformed connectivity markets, thus, sectoral regulations must be simplified by eliminating unnecessary rules and increasing harmonization across the EU, including in consumer rights, security measures, and taxation. A level playing field is essential to ensure consistent rules for similar services, regardless of whether they are offered by telecom or tech companies.

Moreover, targeted regulatory measures, such as introducing dispute resolution mechanisms, are necessary to ensure that major Content and Application Providers (CAPs) fairly compensate network operators for the valuable IP data transport services they provide.

 

Crafting Strong, Industrial, Sustainable Policies

The EU must align its industrial policy goals with sufficient funding and strategic planning. Enhancing the efficiency and coordination of various funding programs is essential. Moreover, there should be increased targeted funding for distributed and AI-ready cloud infrastructure, Open RAN technology, and subsea cables. Encouraging industry collaboration and backing new initiatives are equally important.

These include launching a leading project for distributed cloud infrastructure, setting up EU Open RAN labs operated by telecom companies for testing and validation, establishing a unified EU framework for governing submarine cables, nurturing an EU quantum cryptography ecosystem, and developing a policy framework to drive the telecom sector’s green transition.

 

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