As European ministers meet in Limerick to discuss the Digital Networks Act, it is a welcome moment for alignment on the EU’s connectivity needs.
At a time when Ireland is also convening discussions on the future of AI, policymakers should remember that world-leading AI capabilities require world-leading digital infrastructure.
The Digital Networks Act is a chance to get things right.
For too long, European industry and innovation have been at risk of being undermined by a fragmented connectivity landscape.
Until we prioritise our digital infrastructure, we will continue to struggle to reap the full benefits of the digital economy and of AI-driven enterprise.
Europe aspires to be competitive on the global stage and a leading market. However, in the modern era, when so much depends on online capabilities, the bloc lags the likes of China and the USA significantly.
Digital connectivity underpins almost every sector, from transport to retail, medical to agriculture, manufacturing to energy, logistics to entertainment. And mobile networks are Europe’s digital oxygen.
It should therefore follow that this infrastructure be rightfully treated as a strategic priority. Until now, this has not been the case, which is why the Digital Networks Act is a huge opportunity to correct course and start to catch up.
In particular, Europe’s connectivity players have long been operating in an unappealing market for investment. As things stand, mobile operators need to unlock more than €200 billion in additional, as-yet-unsourced capital over the coming decade for infrastructure upgrades to keep pace with global leaders.
An obvious area that can have an outsized impact is spectrum policy. Currently, a constant renewal cycle drains time and capital from mobile operators while limiting the long-term certainty that can open up investment – put simply, if operators can be confident of retaining a spectrum licence in the long term, they can also invest for the long term, in the expectation of returns.
It is therefore essential that the Digital Networks Act delivers the spectrum reform that can drive investment certainty across Europe’s digital ecosystem.
This means indefinite licence terms and automatic renewals, the latter of which alone would unlock up to €30 billion in capital over the coming decade – money which could be used for infrastructure upgrades and ultimately continue to deliver high-quality services for consumers.
For Europe to lead once again, its policymakers need to show leadership and vision. By delivering a Digital Networks Act fit for the AI age, they have the opportunity to ensure European industry and innovation have the digital oxygen required for years to come.