The GSMA Pitches Spectrum Policy Europe Needs for a Digital Future

The mobile network operators association GSMA has expressed its perspective that the Digital Networks Act represents a significant opportunity for regulatory correction. As European ministers convene in Limerick to deliberate on the Act, the association characterizes it as a vital opening for alignment regarding the European Union’s connectivity requirements.

The organization asserted that policymakers must recognize that world-leading artificial intelligence capabilities necessitate world-leading digital infrastructure. “For too long, European industry and innovation have been at risk of being undermined by a fragmented connectivity landscape. Until we prioritise our digital infrastructure, we will continue to struggle to reap the full benefits of the digital economy and of AI-driven enterprise,” the GSMA stated in a press release.

While Europe aspires to be a globally competitive market leader, the association noted that the bloc currently lags significantly behind China and the United States in online capabilities. Digital connectivity now serves as the foundation for nearly every sector, with the GSMA emphasizing that mobile networks function as "Europe’s digital oxygen."

“It should therefore follow that this infrastructure be rightfully treated as a strategic priority. Until now, this has not been the case, which is why the Digital Networks Act is a huge opportunity to correct course and start to catch up. In particular, Europe’s connectivity players have long been operating in an unappealing market for investment. As things stand, mobile operators need to unlock more than €200 billion in additional, as-yet-unsourced capital over the coming decade for infrastructure upgrades to keep pace with global leaders,” the association added.

The GSMA maintains that spectrum policy is the area capable of delivering an outsized impact. “Currently, a constant renewal cycle drains time and capital from mobile operators while limiting the long-term certainty that can open up investment – put simply, if operators can be confident of retaining a spectrum licence in the long term, they can also invest for the long term, in the expectation of returns. It is therefore essential that the Digital Networks Act delivers the spectrum reform that can drive investment certainty across Europe’s digital ecosystem,” the GSMA stated.

The association further explained that implementing indefinite license terms and automatic renewals could unlock up to €30 billion in capital over the next ten years. “For Europe to lead once again, its policymakers need to show leadership and vision. By delivering a Digital Networks Act fit for the AI age, they have the opportunity to ensure European industry and innovation have the digital oxygen required for years to come,” the GSMA concluded.