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Unlocking Investment in European Mobile Networks

A recent report by the GSMA emphasizes the necessity for smarter spectrum policies to address the pressing investment needs in the European mobile sector. As mobile operators across Europe grapple with significant financial pressures, this report outlines a roadmap that could free up billions in potential infrastructure investments.

The report, titled Spectrum Pricing and Renewals in Europe, authored by GSMA Intelligence, sheds light on the long-standing pricing strategies in Europe that have hindered investment within the mobile sector. The analysis indicates a staggering increase in total spectrum costs over the last decade, now accounting for 8% of the recurring revenues of mobile operators. This financial burden undoubtedly hampers the ability to invest in critical 5G infrastructure, positioning Europe behind other global players. Currently, only 2% of Europeans access standalone 5G services, a stark contrast to the 77% in China and around a quarter in the U.S.

With over 500 spectrum licenses set for renewal in the next ten years, policymakers have a significant opportunity to pivot their approach. These licenses, pivotal for maintaining coverage and existing services, primarily support networks that are crucial for the 470 million mobile internet users in Europe. Reforming the current renewal practices and pricing strategies could potentially unlock an estimated €30 billion in savings. This financial relief could enable operators to upgrade their existing 5G networks to 5G standalone, enhancing speed by up to 23% and potentially generating an additional €75 billion in GDP over the next decade.

John Giusti, the GSMA's Chief Regulatory Officer, asserts that providing high-quality connectivity for European citizens necessitates substantial investments that many operators struggle to justify. He advocates for a thoughtful reform of spectrum policy, which would yield immediate and lasting impacts on the continent's competitiveness. Giusti emphasizes that instead of viewing spectrum as merely a source of revenue, policymakers should adopt a more ambitious renewal strategy. This, in turn, would align funds with Europe’s pressing digital goals.

The Digital Networks Act currently in force provides a platform for change, allowing European nations to rethink their spectrum policies comprehensively. By embracing a unified approach to licensing and renewals, Europe stands to boost its digital economy significantly, enhance consumer experiences, and remain competitive on a global scale.

As the telecom sector calls for these essential reforms, all eyes will be on European decision-makers to see if they will heed the GSMA's insights and initiate the much-needed policy changes. The future of mobile networks in Europe may well depend on their actions.