An overhaul of telecoms rules by the European Union has been called a “missed opportunity” by the association representing Europe’s operators.
ETNO (European Telecommunications Network Operators) said the reform of the Electronic Communications Code (ECC) “represented a once-in-a-decade chance to simplify and improve EU rules for the sector in the interest of European citizens and businesses.”
However, ETNO argues that this chance was not seized.
The association says the ECC does not create the conditions needed to trigger a major wave of investment in 5G and fibre networks, and instead introduces additional complexity to an already burdensome regulatory system.
Phillip Malloch, ETNO Executive Board Chair, commented:
“The new Code was a once-in-a-decade opportunity to make the policy decisions required for Europe to become a catalyst for investment. This is essential if we are to keep pace in a rapidly shifting global economy.
That opportunity has been missed. It is regrettable that major infrastructure investors will now face extra and unnecessary headwinds in building a true gigabit society.”
Key elements of the ECC include:
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Introduction of a price cap on intra-EU phone calls, further reducing industry revenue after previous roaming price cuts.
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Strengthened governance over markets dominated by a small number of telecoms companies, aimed at addressing oligopolistic market structures.
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A reduction of the maximum spectrum licence term to 20 years, shorter than the 25-year term the industry had sought.
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Measures designed to enable wider deployment of small cells to support network densification.
The ECC was first proposed in 2016 by European commissioners as part of an industrial policy intended to encourage telecoms companies to invest billions in full-fibre and 5G infrastructure, delivering significant economic benefits across the EU.
“In our view, the Code is an unfortunate example of Europe lacking a strong and coherent industrial policy, particularly for the digital sector,” ETNO says. “It will now fall to national authorities to try to address the investment gap and respond to these strategic needs.”
Do you agree with ETNO that the overhaul was a missed opportunity? Share your view in the comments.