ETNO Renews Call for Tech Giants’ Support in European 5G and Broadband Rollout
Monday witnessed the European Telecommunications lobbying group, ETNO, once again urging major tech companies to play a crucial role in financing the expansion of 5G and broadband. This call comes as data reveals Europe’s trailing position compared to the United States and Asia in pivotal areas such as 5G networks, cloud computing, investments, and revenues.
ETNO, representing industry giants like Deutsche Telekom, Orange, Telefonica, and Telecom Italia, made these statements in anticipation of the European Commission’s upcoming proposal on digital networks and infrastructure, slated for release on February 21.
Despite the EU telecoms industry’s fervent desire for financial support from tech powerhouses like Alphabet (Google), Amazon, Netflix, Meta Platforms, and Microsoft for 5G and broadband expansion, these hopes were dashed last year. The Commission opted against proposing relevant legislation, deferring the matter to the next administrative team in 2025.
A report commissioned by ETNO from the research group Analysys Mason revealed that despite a record €59.1 billion ($64 billion) invested in the sector last year, only 10 out of 114 networks in Europe were 5G standalone. The report underscored Europe’s limited four commercially available edge cloud offerings in 2023, compared to 17 in the Asia-Pacific region and nine in North America.
The report pinpointed Europe’s lagging telecom capital expenditure per capita and average revenue per user (ARPU) in 2022 compared to South Korea, the United States, and Japan as contributing factors. It also emphasized the significance of the 2022 Rights and Principles Declaration, urging all beneficiaries of the digital economy to make a “fair and proportionate contribution” to digital network investment.
Lise Fuhr, the Director General of ETNO, emphasized the ongoing debate’s pivotal role in shaping the long-term resilience of the European telecoms sector and its overall investment capability. She stressed that maintaining the current status quo, both in terms of investment and policy, would fail to foster the innovation levels necessary to sustain growth and achieve the objectives of the Open Strategic Autonomy.
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