GSMA and Connect Europe welcome Draghi’s report and call for action in delivering the digital infrastructure Europe needs to remain competitive

 

Brussels, 11 September 2024 – The GSMA and Connect Europe, the industry associations representing Europe’s telecoms operators, welcome Mario Draghi’s report The future of European competitiveness, published by the European Commission.

Europe’s global competitiveness is clearly at risk on the global stage and to counter that, best-in-class digital infrastructure and services are required. But over-regulation and a raft of structural issues continue to strangle investment and limit our ability to lead in innovation and achieve the productivity gains that Europe needs.

As we enter a new parliamentary term, resolving these underlying issues needs to be a priority for the incoming European Commission. We therefore support Mario Draghi’s call for a new industrial strategy in Europe, especially his call for a new EU telecoms Act and his recommendations in that regard, in particular:

  1. The urgent need for our sector to scale and to regain its competitiveness vis-à-vis global competitors from China, US and other countries. Without a new approach to merger regulation, Europe will not be able to compete globally and fall behind even further.
  2. The reduction of regulation in light of the competitive dynamics in the market.
  3. The clear requirement of a better market balance with Big Tech – by means of introducing the principle of ’same rules for same services’ and a mandatory dispute resolution mechanism that ensures fair commercial outcomes for the transport of data traffic.
  4. The benefits of more harmonised spectrum licensing procedures, with longer duration and fewer restrictions that will encourage growth and enhance cross-border investment opportunities and alignment across Member States.

If Europe doesn’t act swiftly on these key recommendations, we won’t achieve a competitive, secure and sustainable European single market, let alone future visions such as the provision of cross-border services. We therefore welcome the focus the report places on the urgency of the situation the continent finds itself in. The benefit of improved investment in this crucial digital infrastructure will not only be felt across the telecoms and technology sectors but across every other industry. Facilitating, not restricting, industrial innovation has never been more important for the prosperity of Europe.

Following Enrico Letta’s report earlier this year, and the recent consultation on the White Paper on “How to master Europe’s digital infrastructure needs?”, the evidence supports the need for European policymakers to take meaningful action to secure the continent’s digital future.

It is clear what this means for the telecoms industry: achieving a more connected and innovative Europe based on a digital single market that demands a bold new approach. The EU must move ahead with a legislative proposal without delay, to ensure Europe’s future is not jeopardised.

Click to download the Mobile Industry Manifesto for Europe

Click to download Connect Europe’s Paper on securing Europe’s competitiveness