EU urged to push ahead with telecoms deregulation
Operators warn that proposed changes to plans put 5G investment at risk
The heads of some of Europe’s largest telecoms companies have warned the European Commission that its vision of a digital single market is under threat because of attempts to pull back on deregulation.
The chief executives of Deutsche Telekom, Orange, BT, Telecom Italia and Telefónica have written a letter to telecoms ministers highlighting proposed changes to the Electronic Communications Code and ePrivacy Regulation, two key pieces of legislation that will govern the telecoms industry.
The letter, seen by the Financial Times, states that the proposed amendments to plans unveiled last September would undermine efforts to overhaul the regulation of telecoms to boost investment in full fibre and 5G networks.
The original proposals set out last September by Andrus Ansip, the commission’s digital chief, and Günther Oettinger, the commissioner responsible for the telecoms policy, were intended to scale back regulation of the most established telecoms companies. They also encouraged telecoms companies to jointly invest in fibre networks in underserved regions.
Those proposals have, however, met resistance from some members of the European Parliament due to concerns that they could harm competition.
Telecoms companies are also angry that plans to regulate the price of international calling have been added to the Electronic Communications Code by the consumer committee of the European Parliament. They fear that could eat into their profits at a time when the European Commission is urging them to invest more in newer full fibre and 5G networks.
The sector estimates that the commission’s plan would cost €660bn, with the letter warning that “extracting value” from the sector through unexpected price regulation would be “incompatible” with the ambitious plans for a digital single market.
“The initial strategic focus on investment and innovation appears lost and current developments risk hampering the ability of companies to deliver for European citizens and businesses. We believe that growth, employment, investment and contribution to taxation are at stake,” the letter states.
“Other regions of the world are out-investing Europe 2 to 1 in digital networks. This should be a reason for alarm and action, especially in the context of global competition and fast-paced technological change.”
The industry called on European ministers to “save the 5G project” by sticking to plans to harmonise the regulation of spectrum that have met resistance from some European telecoms ministers, including those in Germany, Spain and UK, that do not want to give up control of licensing and auctions of the airwaves.
A unified approach to the regulation of airwaves across the continent is seen as crucial in reducing the cost of rolling out 5G networks.
The letter, delivered by the European Telecoms Network Operators’ Association, a trade body for incumbent operators, was also signed by the heads of KPN, Telenor, Telia, and a host of smaller companies.