‘Competition must prevail in the quest for telecoms investment’

It is very strange that after 20 years of competition, the market shares of the incumbents stay very high”. These words by Danielle Jacobs, of INTUG and Beltug, open the new video published by ECTA, which includes interviews with thought-leaders from the European Commission, authorities, associations and industry, on the need for a competitive market for telecoms and digital.  Titled The Key to safeguarding competition in European telecoms and digital, the video punctuates ECTA's article on achieving the Gigabit Society, and the role of competition in driving the necessary investment.

ECTA highlights how the move towards network infrastructures of very high capacity (VHC) promises wider social and economic benefits for public authorities, business and citizens. The Commission estimates that the enhanced connectivity due to the delivery of 5G over such networks alone, could generate €113 billion of additional benefits annually in the automotive, healthcare, transport and utilities industries.

The creation of networks for the European Gigabit Society entails changes to how networks are built, operated and managed. This requires technical sophistication, planning forethought, and responsible management of the transition from legacy to VHC networks. Competition-driven investment is critical.

So why, after 20 years of a so-called competitive market, isn’t there more actual competition, and opportunity for the companies that use the services?

According to ECTA, the former monopolists claim that regulations hamper their investments, but the association indicates that the reality is quite different: “The application of existing tools to incentivise their investments has already allowed former monopolists to make significant strides towards re-monopolising markets and removing themselves from competitive pressure.”

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