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Telecom Business Review | Tuesday, January 11, 2022
Despite investing 52.2 billion euros on fiber cable networks and fast-speed 5G in 2020, a four-year high, the European telecoms sector continues to lag behind worldwide peers
FREMONT, CA: If the EU wants to become more independent from global powers such as Asia and the United States, officials must do more to attract investments in the telecom industry, according to a report released on 2 February, by telecoms lobbying organization ETNO. The European Union's 27 member countries are counting on 5G to help them recover from a COVID-19 pandemic-induced recession and take the lead in internet-connected products. Despite investing 52.2 billion euros on fibre cable networks and fast-speed 5G in 2020, a four-year high, the European telecoms sector continues to lag behind worldwide peers, according to a study by research firm Analysys Mason.
According to the survey, Europe's capital expenditure per capita is 96.3 euros, compared to 191.9 euros in the United States and 115.4 euros in South Korea. From a societal standpoint, more telecom investment and sector resilience are desired, and they are critical to Europe's Open Strategic Autonomy ambitions, the research stated. As a result, the sector's long-term viability should urge bold policy actions to drastically enhance the investment climate. Director general at ETNO, Lise Fuhr, whose members include Deutsche Telekom (DTEGn.DE), Orange (ORAN.PA), and Telecom Italia (TLIT.MI), cited cumbersome regulations and insufficient government support.
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Despite the highest level of investment in years, Europe has yet to close the digital divide in the world. The industry continues to be hampered by highly regulated revenues; they need significant policy support to accelerate network rollout and consolidate, she stated. To catch up with rivals such as Google (GOOGL.O), Facebook (FB.O), and Microsoft (MSFT.O), the industry has long advocated for easier regulatory oversight of national market concentration and the ability to monetize data traffic on its networks.
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