Telecoms Call for EU to Correct the Course

The largest telecommunications operators in Europe have issued a formal call for EU policymakers to significantly revise the region's regulatory framework. The industry argues that current regulations are stifling necessary investments in connectivity, highlighting spectrum allocation, fiber deployment, and cybersecurity mandates as primary areas of concern.

In a joint statement, 17 prominent European telecom leaders—including Telefónica Chairman and CEO Marc Murtra, Deutsche Telekom CEO Tim Hoettges, Orange CEO Christel Heydemann, and Telenor Group President and CEO Benedicte Fasmer—urged the EU to "correct the course" regarding the proposed Digital Networks Act (DNA) and Cybersecurity Act (CSA). Other signatories featured top executives from KPN, TIM, Swisscom, Proximus, and Liberty Global. These leaders contend that inconsistent policy reforms are undermining Europe's competitive standing. They pointed out that the mobile sector requires an estimated €475 billion to establish world-class infrastructure, necessitating a dramatic shift in investment levels.

Although the DNA was introduced by the European Commission in January to streamline and modernize connectivity rules, the operators argue that the framework currently fails to foster a productive environment for innovation and investment. The CEOs are advocating for spectrum licenses to be granted indefinitely by default, or for terms of at least 40 years in specific cases. They suggested that moving away from frequent and costly spectrum auctions would allow for the redirection of capital toward the deployment of 5G, fiber, and future 6G networks, noting that European operators have already spent €110 billion on spectrum fees over the last decade.

The consortium also expressed opposition to mandated timelines for copper network shutdowns, insisting that operators should determine the retirement of legacy infrastructure based on market demand and specific local conditions. European firms currently invest more than €30 billion annually in fiber-to-the-home (FTTH) networks. More broadly, the operators called for a transition away from regulations originally designed for legacy systems, suggesting that oversight should act as a safety net in an increasingly competitive market. They also urged policymakers to provide more freedom for innovation in advanced services such as network slicing and quality differentiation.

Regarding cybersecurity, the operators cautioned that Cybersecurity Act rules requiring the removal of equipment from "high-risk" third-country suppliers like Huawei could impose up to €40 billion in replacement costs on the sector. They advocated for a proportionate, risk-based approach that includes alternative security measures, warning that blanket removal requirements would drain capital away from 5G and 6G expansion. Ultimately, the group argued that a more robust connectivity foundation is essential for supporting growth in AI, defense tech, and sovereign cloud solutions. “As CEOs of Europe’s leading telecom companies, we are ready to play our part in delivering European tech leadership,” the executives concluded.