17 October 2024

The EIF debate on the 'White Paper on Connectivity' brought together experts to discuss the future legislative and regulatory path for Europe’s digital networks. Pilar del Castillo MEP initiated the conversation by underscoring the white paper’s role in shaping the Digital Network Act, with a focus on reducing regulatory burdens and closing the substantial investment gap needed to achieve 5G coverage across Europe. MEP del Castillo emphasized that harmonizing regulations within the digital single market is critical for the EU’s competitiveness and urged the European Commission to prioritize streamlined rules to facilitate investment.

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White paper on connectivity: next steps

Renate Nikolay of the European Commission elaborated on the white paper’s objectives, which aimed to address not only the regulatory environment but also the broader technological and industrial contexts. She pointed to the interconnected nature of telecom, cloud, and edge technologies, and warned that unless action is accelerated, the EU will miss its Digital Decade targets for connectivity and 5G. Ms Nikolay advocated for a more integrated infrastructure approach and noted that recent consultations revealed widespread recognition of connectivity’s importance for competitiveness.

Telefonica's Juan Luis Redondo argued that the telecommunications sector must adopt new strategies to avoid falling behind, as highlighted by the Draghi report. He viewed the Digital Network Act as an opportunity to reshape the regulatory landscape to incentivize investment, stressing that existing policies are better suited to promoting competition rather than encouraging large-scale infrastructure investments. Mr Redondo called for a shift towards pro-investment frameworks and proposed updating competition policies to reflect new realities, including industrial security considerations.

Marc Vancoppenole from Nokia focused on maintaining European leadership in telecom R&D, noting that while there are substantial research programs in place, coordination and speed must improve. He expressed concern over the proposed changes to standard-essential patent regulations, warning they could undermine Europe’s competitiveness in telecoms. Additionally, Mr Vancoppenole highlighted the need for better spectrum allocation to support future technology deployments like 6G, as delays in 5G spectrum distribution had already set Europe back.

Luc Hindryckx from ECTA discussed the progress and challenges within Europe’s telecom market, pointing to the current regulatory framework’s achievements in promoting competition. He argued that a diverse and competitive market remains essential for Europe’s economic growth and innovation potential. While acknowledging that more could be done to optimize spectrum fees and accelerate the transition to new network technologies, Mr Hindryckx called for maintaining policies that continue to drive consumer benefits and market harmonization across the EU.

The consumer voice was represented by Agustin Reyna from BEUC, who highlighted the need to ensure consumer interests remain central in policy discussions, particularly in the context of market consolidation. He noted that although Europe has made significant strides in telecom services, further mergers could reduce competition, potentially harming consumer choice and service quality. Mr Reyna urged policymakers to carefully consider the impacts of regulatory changes on consumer welfare, emphasizing the importance of maintaining a balanced approach that encourages both investment and competition.

Laszlo Toth of GSMA closed the debate by framing the discussion within the global race for technological leadership, stressing that Europe cannot afford to lag behind. He pointed to the current regulatory environment as a barrier to significant investment in telecom networks, which are essential for supporting next-generation technologies such as AI and cloud computing. Mr Toth advocated for a coordinated overhaul of the overlapping regulatory frameworks governing the sector, suggesting that comprehensive reforms could unlock new growth opportunities and secure Europe’s position in the evolving digital landscape.

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