Europe to turn its digital targets into concrete actions, CEOs of European providers call for

Europe to turn its digital targets into concrete actions, the CEOs of the European Telecommunications Providers call for a joint statement.

“We call on the EU to align its digital ambitions with a supportive policy and an appropriate regulatory ecosystem,” he said. total digital networks to all European citizens: total investment in telecommunications has now reached € 52.5 billion / year[i] in Europe, at the highest level in the last six years. In addition to the development of 5G networks, fiber optics and cable networks, we are innovating with collective initiatives for Open-RAN services, edge cloud and data services. We take decisive action on climate change by setting specific goals for a neutral climate footprint of our activity [ii], but also facilitating the widespread adoption of Information and Communication Technology (ICT) solutions, which can allow up to 15% reduction of carbon dioxide emissions throughout the economy[iii].

European political leaders have also stepped up their efforts to lead the way digitally. Having approved the allocation of 20% of the resources for the implementation of the digital transition, within the Recovery Plan for Europe[iv], and having set ambitious EU targets for the Digital Decade[v], Europe is at a turning point.

We now need concrete and immediate action to seize the opportunity and further fuel technological innovation and inclusion. Europe’s global role cannot be limited to the market and regulation of technology made by others: we must create the conditions for domestic digital infrastructure and services to thrive and set global standards that can be emulated.

In order to achieve these common aspirations, we call for action in the following three areas:

Clear alignment between the ambitions of European digital leadership and EU competition policy. Positive messages from industry cooperation – from network sharing to IPCEI projects[vi] – are important steps forward and need to be strengthened. Building scale in the telecommunications sector remains a priority, both within the Member States and at a pan-European level: this is a strategic interest for the EU and its citizens.

Strong political commitment to ensure that regulatory action encourages investment in gigabit networks, which will require an additional € 300 billion investment [vii]. The regulations must fully reflect the reality of the market, now and in the future – more specifically, the fact that telecommunications providers are in direct competition with the services of technology giants in dynamic markets. High spectrum prices and auctions that artificially bring unsustainable players to market must be stopped. Recent thoughts on amending a European Commission proposal to extend retail pricing to international calls – a competitive market full of free alternatives – run counter to the Digital Decade goals. Our estimate is that they would deprive the industry of revenues over 2 billion euros within a period of 4 years, an amount equivalent to 2.5% of the industry’s annual investment capacity for mobile infrastructure [viii]. In addition, we believe that the ongoing legislative work to reduce the cost of infrastructure development is essential and should move forward quickly.

A new attempt to balance the relationship between global technology giants and the European digital ecosystem. Horizontal measures, such as the Digital Markets Act, play a crucial role and we therefore strongly support them. In addition, we need to take into account important issues that concern our industry. A large and growing part of the network traffic is caused and liquidated by technology giants platforms, however it requires continuous, intensive network infrastructure investments and planning by the telecommunications industry. This model – which allows EU citizens to enjoy the fruits of the digital transformation – can only be sustainable if such large technology platforms also contribute fairly to the cost of the network. In addition, we must ensure that new industrial strategies allow European players – including telecommunications providers – to compete successfully on the world data map, so that we can develop a European data economy based on true European values.

Europe needs a strong telecommunications industry. “For our part, we are ready to help the institutions further shape a policy framework that will accelerate digitization for the benefit of all European citizens and businesses.”

The undersigned:

Thomas Arnoldner, CEO, A1 Telekom Austria Group

Nikolai Andreev, CEO, Vivacom

Guillaume Boutin, CEO, Proximus Group

Sigve Brekke, President and CEO, Telenor Group

Joost Farwerck, CEO and Chairman of the Board of Management, KPN

Alexandre Fonseca, Executive President, Altice Portugal

Timotheus Höttges, CEO, Deutsche Telekom

Philip Jansen, CEO, BT Group

Allison Kirkby, President and CEO, Telia Company

José María Alvarez Pallete, Chairman and CEO, Telefónica

Nick Read, CEO, Vodafone Group

Stéphane Richard, Chairman and CEO, Orange Group

Urs Schaeppi, CEO, Swisscom

[i] Analysys Mason estimates for ETNO : total telecom CapEx in Europe, 2020.

[ii] European Green Digital Coalition, 2021, https://digital-strategy.ec.europa.eu/en/policies/european-green-digital-coalition

[iii] BCG for ETNO, 2021, https://etno.eu//downloads/reports/connectivity%20and%20beyond.pdf

[iv] European Commission, 2020, https://ec.europa.eu/info/strategy/recovery-plan-europe_en

[v] European Commission, 2021, https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/europes-digital-decade-digital-targets-2030_en

[vi] Important Projects of Common European Interest, https://ec.europa.eu/competition-policy/state-aid/legislation/modernisation/ipcei_en

[vii] BCG for ETNO, 2021, https://etno.eu//downloads/reports/connectivity%20and%20beyond.pdf

[viii] Analysis Mason estimates for ETNO: effects of extension of current regulation when including elimination of intra-EU call charges, aggregated for all EEA operators, period June 2019  to June 2023.