The MWC Barcelona mobile phone fair was opened to the European Union Commission with a vivid appeal to loosen the regulation of the telecom industry on Monday morning. Fundament, over-regulations and narrow returns meant that the industry back trap in Europe, warning the new telephone CEO Mark Martra at the beginning of the trade fair in Barcelona. “This is not a case in other regions like the United States, Middle East or Asia.”
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To address European governments and Brussels regulators, Martra said, “It is time to allow great European telecom companies to consolidate and grow.” “It can strengthen Europe’s strategic autonomy, release productivity and improve people.” Otherwise, Europe’s global role will continue to disappear and “we will not be able to design our future independently”.
Expensive spectrum
Mobile phone network operators look back in two decades that always require new investments in the network – expensive first UMTS auction has occurred 25 years ago, and technology has returned to Europe. Since then, network operators repeatedly have to take a lot of money on frequency use rights.
Stop cyber security activities against USA Russia: Network estimatesBut despite increasing the number of customers in the nets, companies complain of sales and stabilizing margin. The scope between the amount of investment and the sale is becoming increasingly narrowed, the General Director of the Network Operator Association emphasizes Matt Granrid and MWC organizer: “It is not durable and has to change. We also need more spectrum, this is our oxygen.”
Bharti Airtel CEO Sunil Mittal says, “The average growth rate in our industry is only two percent.” “And the return to the capital invested is four percent. We can put better money on the bench and play a little golf.”
The industry sees a way in the cross -brormer merger for “European Champions” that can enable new scale impact. So far, Brussels have refused to do so and ensure that at least three or four network operators in member states are in healthy competition.
“How much infrastructure do we really need?” “Of course you have to ensure competition. Competition is a belief for every regulator, every government – and even in the industry for us. But you have to allow consolidation.”
Drague recommendations
The European Union economy list, which was distributed by East-ECB boss Mario Dragi in Autumn 2024, was carefully read in the telecom industry. The politicians of Brussels, who have announced themselves in Barcelona, ​​have to adapt to significant conversations – even if many of them will be behind the closed doors.
Dragi recognized Brussels regulation as one of the factors that damage the competition of Europe. With its strong regulation based on the needs of consumers, the European Union is also considered a break in the industry.
Dragi openly showed himself to the idea of ​​including American online giants in the network cost. Although internal market commissioner Theory Bretton launched a large -scale campaign for this in the previous European Union Commission, Brussels have not yet fulfilled this request to the industry. And so the network operators will also launch the old song in 2025 that they have been singing at MWC for more than a decade.
(VBR)
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