EU policymakers need to do more to attract investments in the telecoms sector if the bloc wants its economy to become more independent from global powers like Asia and the United States, a report by telecoms lobbying group ETNO said on Wednesday.
The 27-country European Union is banking on 5G to lift it out of a COVID-19 pandemic-induced recession and take the lead in internet-connected devices.
Despite investing 52.2 billion euros ($58.8 billion) in fibre cable networks and fast-speed 5G in 2020, a four-year high, the European telecoms sector still lags behind global peers, the study conducted by research firm Analysys Mason said.
In terms of capital expenditure per capita, Europe's spending stands at 96.3 euros versus 191.9 euros in the United States and 115.4 euros in South Korea, the report said.
"The increase of telecom investment and the resilience of the sector are desirable from a societal viewpoint and they are key to Europe's 'Open Strategic Autonomy' plans," the study said.
"Therefore, the sustainability of the sector should encourage strong policy action to dramatically improve the investment climate."
Lise Fuhr, director general at ETNO, whose members include Deutsche Telekom, Orange, Telefonica
and Telecom Italia, pointed to cumbersome rules and inadequate government support.
"Despite the highest investment in years, Europe has not filled its global digital gap yet. Our sector still suffers from highly regulated revenues: we need strong policy support for faster network roll-out and for more consolidation," she said.
The sector has long called for easier regulatory scrutiny of consolidation in national markets and to be allowed to monetise data traffic on their networks to catch up with rivals such as Google, Facebook and Microsoft.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU