EU telecoms overhaul labelled ‘missed opportunity’ by industry

An overhaul of Europe’s telecoms laws, aimed at stimulating investment in new networks, has been branded a missed opportunity for the industry. The new European electronic communications code, the biggest shake-up in the sector’s governance since 2009, was approved on June 6. The agreement coincided with the release of a European Court of Auditors report that showed the European Union’s goal of connecting half of the region’s households to ultrafast broadband with speeds of 100 Mbps by 2020 was well behind target. As of mid-2017, it said, only 15 percent of households had subscribed to such networks. Commissioners said the new rules were a big step forward in closing a funding gap for high-speed networks. “The code is instrumental in achieving a more predictable investment environment, in particular through regulation adapted to the risks and challenges of deploying substantially new networks, with rewards for early movers,” said Pilar del Castillo, the Spanish Member of the European Parliament.

The overhaul was originally pitched in 2016 as a strategy to entice telecoms companies to invest in full fibre and 5G networks to deliver huge economic benefits. However, the policies were watered down by member states and the European Parliament, much to the chagrin of companies and their investors. The rules do include a plan to strengthen the governance of “oligopolies” in smaller markets where a few telecoms companies dominate, and the introduction of price caps on intra-EU phone calls that could put another dent in the industry’s revenue after roaming reductions. The rate was set at 19 cents per minute for a voice call and 6 cents per text, and will come into effect in spring 2019.