Future of telecom and digital regulation

The regulation and competition within the electronic communications market has changed fundamentally over the last 25 years. Initially, the focus was on opening up previously monopolistic telecommunications markets. The electronic communications markets, which were originally clearly demarcated, have since given way to a highly dynamic and complex ICT ecosystem consisting of diverse market participants, technologies, infrastructures, digital services, platforms, and political objectives. Complex dependencies now exist along the internet value chain, so regulation must take a holistic view of the “relevant ecosystem”. All digital business models and regulatory objectives require modern broadband infrastructure. However, expanding 5G mobile networks and fibre-based fixed networks is resource-intensive. Therefore, regulation should focus even more strongly on investment incentives in future. While telecom providers have been subject to a comprehensive regulatory framework in the European Union (EU) for around 25 years, digital service providers have only been subject to digital regulation for a few years in the EU, which creates significant regulatory asymmetry in some cases. Existing areas of regulation in the telecommunications sector should therefore be critically examined, and relaxed or abandoned if market failures can no longer be proven. At the same time, the introduction of new rules for digital services is only justified if existing digital regulations at EU level are demonstrably inadequate. This study warns against further increasing the overall intensity of regulation within the EU framework. Instead, deregulatory steps are necessary in areas where competition is sufficiently developed to foster investment and strengthen Europe's position in global competition, creating not only investment incentives but also a level playing field. To achieve these objectives, the paper concludes with a series of specific recommendations and guiding principles for policy action within the future EU framework.