European telecoms groups unveil 5G manifesto
Europe’s largest telecoms groups have pledged to launch superfast 5G networks in at least one city in every EU country by 2020, as part of a manifesto signed by the heads of BT, Deutsche Telekom, Telecom Italia and Vodafone among others.
But as a quid pro quo for more investment, controversial new EU rules on net neutrality should be watered down, according to the document signed by 17 different telecoms groups and seen by the Financial Times.
Access to superfast broadband — with potential speeds of 10 gigabits per second — is seen as vital for embryonic sectors such as self-driving cars, but will be hindered unless the EU’s telecoms rules are overhauled, argue the telecoms chiefs.
Strict new net neutrality rules — upholding the principle that internet traffic should be treated equally — have proven controversial, triggering a three-way fight between telecoms groups, online activists and content providers such as Netflix.
While telecoms groups argue that such rules choke investment and will limit the availability of new services, net neutrality supporters see the rules as vital for keeping the internet open, without internet providers being able to censor or moderate content for no good reason.
In the document, the telecoms groups threaten to postpone investment unless regulators offer more light-touch arrangements.
“The telecom industry warns that the current Net Neutrality guidelines create significant uncertainties around 5G return on investment,” reads the manifesto. “Investments are therefore likely to be delayed unless regulators take a positive stance on innovation and stick to it.”
The telecoms industry has also demanded a regulatory “level playing field” by placing communications tools such as WhatsApp and Skype under the same rules as normal telecoms services.
Marietje Schaake, a liberal Dutch MEP who worked on the net neutrality law, said the telecoms industry was contradicting itself: “On the one hand they call for a level playing field, while saying: favour us with your legislation.”
Brussels is set to rip up its telecoms rules once again this autumn, as regulators attempt to increase investment in the sector, while keeping prices low for consumers.
The European Commission has angered the industry in recent months by taking a firm line on industry mergers, arguing that at least four players should be present in each large market in order to ensure sufficient competition.
Increased data usage will be able to ensure telecoms groups can afford to invest, without the easing of regulatory requirements, according to Ms Schaake. “Telcos are moving into providing access to the internet: they will benefit from larger use of data in general,” she said.
“There will be a transition from telephony — phone calls and SMS — to VoIP [online phone calls] and other kinds of communication based on data,” she added. “In order to foster that usage, strict net neutrality is necessary.”