Governments doing the right thing
Signs are starting to emerge of policymakers moving in the right direction. Over the past year, there has been growing acceptance of the need to address the challenges facing the sector.
Enrico Letta, former Italian prime minister, has called for the completion of the single market for telecoms, and asked policymakers to consider the necessity of some level of consolidation within national markets. France and Germany have called for more investment, and a true single market to ensure that Europe can live up to its ambitions. These messages are reflected in the mood music coming from recent telecoms ministerial meetings. Issues like improving cybersecurity and doing more to protect children online, are also – rightly – demanding attention.
Policymakers are clearly recognizing the need for a new approach – and that it has become unavoidable. The job now is getting it done.
For this, the Digital Networks Act is key. Telecoms ministers will play a vital role in getting this over the line in Brussels, and ensuring the subsequent necessary action is taken in member states. It must not be allowed to drop down the priority list in the next EU mandate.
Some have already demonstrated their willingness to evolve. Germany’s telecoms regulator is consulting on proposals to extend spectrum licenses for another five years. In return, operators must commit to reaching certain coverage obligations, such as covering 99 percent of rural households with fast connectivity by 2030.
These proposals will bring far more benefits to German citizens than the alternative – an auction taking significant capital from telecoms operators that could have otherwise been spent on infrastructure improvements. Spain, France and Portugal have also made similar decisions in recent years.
Ultimately, this is an argument for the future of European competitiveness, and what it means to be European. It’s an argument for European citizens and their right to a digital future, with the same opportunities as peers abroad. Thankfully, the shoots of change are starting to emerge. Policymakers must now allow them to flourish.