New Rules for a New Era Connecting Europe to 2030: A Mobile Industry Manifesto for Europe
The world has entered a new geopolitical era characterised by increased polarisation, rising trade barriers, emerging conflicts and a global tech race whereby leadership in areas such as cloud computing, AI and digital networks becomes the determining factor for economic growth and political power.
In this race, Europe is lagging behind other global players — countries that are driving the technologies of tomorrow and securing critical sectors through innovation and competitiveness. But Europe is not destined to follow, and the mobile industry will be key in advancing the EU political agenda and achieving the Digital Decade target of 5G for everyone and everywhere, by 2030.
Connectivity is the backbone of a competitive digital and green economy. However, the European Commission’s 2023 Report on the State of the Digital Decade shows that unless urgent action is taken, the EU will not meet its connectivity targets in time. This is because the telecoms sector is facing unprecedented and systemic challenges in rolling out the infrastructure necessary to achieve this goal.
Excessive market fragmentation, spectrum costs and an outdated regulatory framework have caused the telecom sector’s revenues to decrease, despite growing reliance for digital networks. European telcos have lost a staggering 80% of their market value over the last 20 years, while revenues across the broader internet ecosystem have significantly increased . This situation, compounded by inflation, energy and environmental crises, has further deteriorated the financial performance and investment capacity of the sector. For Europe to effectively compete in the global economy and tech race, a paradigm shift is urgently needed.
A thriving mobile sector is a key driver of the EU’s digital ambitions, both through its next generation 5G and 6G networks, and the technologies and innovation ecosystems they enable. It also acts as an engine of Europe’s economic competitiveness as advanced connectivity enables industry, including SMEs, to reap the value and transformative benefits of digital technologies. This opens up new opportunities for technological innovation in multiple sectors, including in strategic sectors ranging from energy to manufacturing.
Mobile operators play a fundamental role in enabling the green transition by increasing energy efficiency and supporting the adoption of clean technologies. Connectivity is vital in closing the digital divide and ensuring social cohesion, granting all citizens and businesses access to digital services such, for instance, e-government.
The sector is also key to a secure and resilient Europe that develops its own technological capabilities and creates prosperity for its own future. When Europe was hit by profound crises, such as the COVID-19 pandemic, cyberattacks and the war in Ukraine, the mobile industry responded, ensuring that Europeans citizens and businesses remained connected.
In its exploratory consultation on the future of connectivity, the European Commission recognised the industry’s strategic importance and societal role. More reflection is expected with the recently published White Paper.
The time has come to act and establish a new regulatory framework that allows for long-term investment, recognises the need for economies of scale and enables the fast deployment of world-leading connectivity — allowing the EU to regain the competitiveness and technological leadership it has lost. To realise its digital future and achieve its geopolitical ambitions, Europe needs a new digital infrastructure framework fit for today’s challenges.