Ludovic Pech’s Post

Competition policy has been a priority for the Telco sector for the last years. The white paper of the European Commission on digital infrastructure, the Letta report, and the Draghi report, all identified the lack of scale as an issue that must be tackled. In the words included in the mission letter of Ursula Von Der Layen to the designated Executive Vice-President for Clean, Just and Competitive Transition, and Commissioner for Competition, Teresa Ribera, "Europe needs a new approach to competition policy – one that is more supportive of companies scaling up in global markets, allows European businesses and consumers to reap the benefits of effective competition (…)". EU telecoms operators can only cope with the high investment needs if there is sufficient return on the investments, and this can only be achieved if there is enough scale in the form of additional customers on individual networks. Therefore, scale is urgent and critical to encourage investment in EU telecoms markets. Facilitating in-market consolidation is key for EU telecom operators to achieve the scale they need to ensure its viability. This article foucs on the review of the Horizontal Merger Control guidelines, as a key priority to make competition policy a tool to foster European competitiveness.

The digitalisation of the European economy will play a major role in this week's #TTC Telecoms & Competitiveness Council meetings. #Connectivity plays a fundamental role and it can empower citizens, boost sustainable growth, and ensure the EU's competitiveness. ETNO Association & the GSMA encourage the upcoming Hungarian Presidency of the EU to support the European Commission in their concrete follow-up to the White Paper on “How to master Europe’s digital infrastructure needs?”. Our connectivity ecosystem requires urgent action: boosting investment, achieving adequate scale, and simplifying outdated regulation are all necessary and urgent steps to make Europe more competitive, secure, and resilient 👇 https://bit.ly/3URxfH7

The Future of European competitiveness (di Mario #Draghi) Facilitating consolidation in the #telecoms sector is needed to deliver higher rates of investment in connectivity. The cornerstone initiative is modifying the EU’s stance towards scale and consolidation of telecoms operators to deliver a true Single Market, without sacrificing consumer welfare and quality of service. To encourage #consolidation, the report recommends defining telecoms markets at the EU level – as opposed to the Member State level – and increasing the weight of innovation and investment commitments in the EU’s rules for clearing mergers. Country-level #exante regulation should be reduced in favour of #expost competition enforcement in cases of abuse of dominant position. It is also proposed to harmonise EU-wide spectrum licensing rules and processes and to orchestrate EU-wide auction design features to help create scale. To ensure that EU players remain at the forefront of new technological developments, it is recommended to establish an EU-level body with public-private participation to develop homogenous technical standards for the deployment of network APIs and edge computing, as was the case for roaming in the 1990s. To increase the capacity of EU operators to invest in these technologies, it is recommended to support commercial investment sharing between network owners and Very Large Online Platforms that use EU data networks to a massive extent but do not contribute to financing them. #future #UE #competitiveness

🚀 Revitalizing Europe's Digital Infrastructure: A Call to Action for Innovation Europe’s digital landscape is at a pivotal point, hindered by regulatory hurdles and market fragmentation. But within these challenges lies an opportunity to reshape the continent’s telecom industry for the better. Here's a deeper look: Fragmentation and Scale: Europe’s telecom market is splintered into over 20 separate markets, preventing operators from harnessing economies of scale and keeping costs higher than they could be. Consumer Spending Patterns: European consumers spend less on mobile services compared to their U.S. counterparts, missing out on the benefits of an innovative, competitive market. Opportunities in Network Sharing: With 80% of Europe’s population concentrated in 20% of the landmass, a shared network infrastructure could greatly reduce costs and improve rural connectivity. Collaborative Approach: A government-led, not-for-profit telecom entity, backed by the industry, could unify European infrastructure. A pan-EU initiative could maximize economies of scale and deliver better services. Is now the time for Europe to embrace these transformative changes and lead the way to a more connected future? #DigitalTransformation #EUInfrastructure #TelecomInnovation #NetworkSharing #OpenRAN #EconomiesOfScale #ConnectivityRevolution #EuropeanTech #TelecomReform #FutureOfConnectivity https://lnkd.in/dQQbw8hF

We call on Ministers to take further concrete steps in order to ensure that the European Council conclusions of 18 April 2024 turn into swift and concrete policy action. Heads of State and Government explicitly called for “supporting the digital transformation of business, government and society, which requires a true Single Market in digital services and data, encouraging and facilitating investment in digital infrastructure like 5G and 6G”.

📡 European Telecommunications Policy: A Critical Debate for the Future The ongoing telecommunications policy debate, sparked by Mario Draghi, is more than just about technology—it’s about Europe’s future competitiveness. Policy makers have correctly identified the key factors holding Europe back: - Lack of economies of scale in EU telecoms - Outdated competition policies - Poor spectrum allocations - Imbalances in digital ecosystems These are critical barriers that must be addressed if Europe is to play a meaningful role in the future digital and industrial economy. While we can debate the methods, the objectives are clear. Striking a balance between regulation, innovation and consumer rights is crucial. However, it's evident that the focus on preventing telecom giants from growing, in the name of protecting consumer rights, has kept the European telecom sector fragmented and lagging behind in innovation. ✈️ Take the aviation industry, where Airbus thrives in a competitive yet regulated market. It’s a great example of how an European company can deliver innovation while ensuring a level playing field for consumers. Europe has achieved remarkable milestones in telecommunications in the past. It's not too late to realign and follow the direction that Draghi has outlined for a brighter, more competitive future. #TelecomPolicy #EUCompetitiveness #Innovation #Regulation #DigitalEconomy #MarioDraghi #Telecommunications

MVNO Europe: Draghi’s recommendations undermine the crucial role competition can play in fostering innovation, investments, and the interests of both consumers and businesses. MVNO Europe (European Association of MVNOs) says it is deeply concerned by Mr. #Draghi’s recommendations for the telecom sector, in particular its focus on consolidation of the industry in the hands of a few large operators, and proposals to modify spectrum policy and competition policy to artificially drive such consolidation. "We regret to see that the telecom chapter of the Draghi’s report blatantly ignores the value of competition as a driver for investments and innovation, unlike other chapters of the same study." MVNO Europe would like to highlight that MVNOs do contribute significantly to financing infrastructure by paying substantial wholesale fees to Mobile Network Operators (MNOs) for network access (MVNOs pay MNOs for each minute/SMS/megabyte used). This aligns with Commissioner-designate Virkkunen’s mission to incentivize investments in digital infrastructure, demonstrating that MVNOs play an active role in sustaining Europe’s telecom infrastructure and should not be disregarded. #MVNO Europe regrets the report’s misleading association between the number of operators, including MVNOs, the European telecom sector’s alleged low profitability, and its alleged underperformance. The report’s call for change to EU policy and regulation to artificially favor the largest operators echoes the narrative advanced by ETNO (now Connect Europe). The suggestion that Europe has “too many” operators compared to the US and China ignores the value and welfare that competition brings to the market and misrepresents the impact of policies, legislation and regulation designed to foster it. Contrary to the report’s suggestion that Europe is lagging behind, many EU Member States in fact are leaders in both 5G and fiber deployment in international comparisons, and at the same time in offering choice, innovation and value for money to users (consumers, businesses and administrations). MVNO Europe’s position on key related policy topics is available in their response to the European Commission’s consultation on its White Paper entitled ‘How to master Europe’s digital infrastructure needs?’: https://lnkd.in/g_kMkdJc https://lnkd.in/g3AU7avt

Mario Draghi's analysis of the future of European competitiveness highlights the changes that I have long considered necessary and urgent. Draghi points out that the telecom sector is overcrowded: "Today, the EU has dozens of telecom players serving around 450 million consumers, compared with a handful in the US and China, respectively," and adds, "as a result, in Europe both revenues per subscriber and capital expenditure per capita (...) are less than half the US’ and Japan’s levels," reaching the conclusion that "the declining profitability of the telecom sector now may represent a risk for industrial companies in Europe." There couldn’t be a more authoritative confirmation of the perfect storm I also described on stage at the GSMA Mobile World Congress in Barcelona in 2023 (https://lnkd.in/dfi5yQss). That’s where I showed how it was necessary and urgent to change the rules of the game, because #InactionIsNotAnOption. Some may have thought I was being provocative, but step by step, we are all converging on the same positions. First, there was the report "Much More than a Market" by Enrico Letta and Jacques Delors Institute, then the White Paper by the European Commission with Thierry Breton "How to master Europe’s digital infrastructure needs?". Now, Mario Draghi's perspective joins them, recommending to "reform the EU’s regulation and competition stance to complete the digital single market for telecommunications, harmonizing rules and favoring cross-border mergers and operations," and he adds in more detail: • "reduce country-level ex ante regulation and favor rather ex post competition enforcement • facilitate cross-border integration and the creation of EU-wide players • introduce a ‘same rules for same services’ principle across the EU • encourage the definition of commercial contractual agreements for terminating data traffic and infrastructure cost-sharing • incentivize the deployment of new infrastructures by defining cut-off dates for older technologies". Well, let’s continue down this path, united as we are already doing, thanks to the work of organizations such as the Confindustria team led by Emanuele Orsini, GSMA, and Connect Europe, with the indispensable contribution of the Ministero delle Imprese e del Made in Italy by Adolfo Urso, Alessio Butti, Agcom, and AGCM. We are ready to do our part, aware that the game we are playing is one of the most important: without #TLC, there is no digitalization. Report “The future of European Competitiveness”: https://lnkd.in/dhb875VR

The time for building European leadership over the fast-evolving #connectivity value chain is now! Boosting investment, achieving adequate scale and simplifying outdated regulations are all necessary and urgent steps if we are to make the Continent more competitive, secure and resilient to the benefit of European citizens. In the context of the #TTE Telecoms Council meeting, GSMA and ETNO Association call on Ministers to support connectivity as a key enabler of EU #competitiveness. Read more: https://lnkd.in/egXPUKZH Council of the European Union Belgian Presidency of the Council of the European Union 2024

📢 Transformative connectivity is fundamental to Europe achieving Digital Decade Targets and closing the gap with leading geographies.