Lack of telecom investments will create the next EU crisis. Action from the Commission is too little, too late, and too slow.
The EU was hit by a financial crisis in 2008, and it is on track to be hit by a digital crisis. Bad telecom policy has deterred investment in the region for a decade. Europeans will not be able to get networks when they need them. It’s not a question of subsidies; there is enough cash flow in the industry to make investments. Operators make the minimal investments to defend existing networks, but no European operator can justify larger outlays in such an uncertain regulatory environment.
The new EU commission has made important strides to an improved telecom framework, but they need to implement quickly. It has already been a year since Strand Consult made this research note about the coming digital crisis and to comment on Neelie Kroes package for the Connected Continent and digital single market. Telecom investors still see an uncertain future for telecom.