BEREC Chair Robert Mourik (pictured) warned of “fundamental repercussions” for the European technology sector if policies from the new European Commission are based on recent reports calling for sweeping changes to the telecoms framework.
Speaking at 5G Techritory in Riga, Mourik highlighted several reports intended to influence future EU policies to strengthen competitiveness on the global stage. He referenced the Draghi and Letta reports, along with the European Commission’s white paper, How to Master Europe’s Digital Infrastructure Needs. These documents address the fundamental shifts in the telecoms market, advocating for reforms such as promoting consolidation to create larger companies with the financial capacity to support extensive deployment strategies and advance the Digital Single Market.
“The thesis of Draghi and Letta in their reports is that the internal market requires attention and that Europe must act to remain competitive and innovative. This view aligns with BEREC’s perspective. The question, however, is how to proceed. We believe the proposed solutions for the telecoms sector in these papers are often not fit for purpose,” Mourik said.
He argued that the European Commission needs to conduct further analysis before introducing legislation that would impact the telecoms market. Although there is a perceived lack of investment in European telecoms, Mourik countered, “We’ve never seen such high levels of investment in fibre and 5G as in recent years.”
He further claimed that Europe is in a “far better position” than the US regarding fibre deployment, where American providers reportedly struggle with profitability from this infrastructure.
Mourik also expressed concerns about the Draghi report’s recommendation to create “industrial champions” through consolidation to remain competitive with Chinese and US companies. Instead, he argued, regulators should encourage competition to drive investment, resulting in lower prices and better service, which would benefit consumers.
“Draghi suggests that competition is key to creating a strong industry in Europe that can compete globally. Many telecom companies interpret this as support for an industrial policy favouring large telcos. However, I believe we should not dilute our competition policy or protect certain companies over others,” Mourik added.
Confirmation hearings for the nominees to the new European Commission, led by President Ursula von der Leyen, are scheduled to begin on 4 November.
