The European fixed broadband market has experienced significant growth, but a coalition of leading connectivity providers are raising concerns over proposed regulatory adjustments by the European Commission (EC). In an open letter, these telecommunications executives express “alarm” over plans to relax regulations concerning former fixed monopolies. They warn that these changes could undermine investor confidence and disrupt the competitive landscape critical for the future of fixed broadband services in Europe.
Voices of Concern from Industry Leaders
The letter is signed by top executives from major telecommunications entities, including Bouygues Telecom, Colt Technology Services, Eurofiber, Fastweb, Vodafone Italy, iliad Group, Open Fiber, CK Hutchison Group Telecom, 1&1 AG, and Vodafone Group. Their critical perspective emphasizes that deregulation could lead to a troublesome consolidation of market power, hindering competition and investment during a vital transition period marked by the migration from copper to fiber networks. This pivotal shift is not only necessary for modern connectivity but also essential for ensuring that Europe can meet its ambitious Digital Decade 2030 objectives—goals like widespread gigabit connectivity and comprehensive digital infrastructure.
The executives highlighted that European consumers and businesses have long benefited from the choices and innovations made possible by a well-structured regulatory environment. This framework has effectively lowered barriers to entry, enabling new operators to enter the market and provide competitive services. They argue that the balance struck by existing regulations encourages both competition and the substantial long-term investments required for building and maintaining high-quality, gigabit-capable fiber networks.
The Threat of Remonopolisation
In their letter, the telecommunications providers assert that, unlike in the mobile sector, fixed broadband access—including essential infrastructure like ducts and poles—functions as a natural monopoly across significant portions of the European Union (EU). They note that only incumbent operators possess the nationwide coverage necessary to provide comprehensive services. Thus, maintaining regulated wholesale access becomes crucial for ensuring competition and innovation in the market.
“To serve European businesses and enterprises,” the executives stated, “operators must also offer connectivity at a variety of urban and rural sites. Given that only incumbent operators have nationwide coverage, wholesale access remains key.” They further stress that the EC’s proposals signal a troubling retreat from the principles of competition that have driven investment for decades. Allowing former monopolies to operate with less oversight could enshrine their dominance, especially in underserved communities, ultimately jeopardizing the expansion of full-fibre infrastructure and gigabit-capable services for millions of users.
The operators conveyed a stark message that any shift away from the established ex-ante regulatory model, or the removal of any markets from the Recommendation on Relevant Markets (RRM) regulations, would lead to significant uncertainty in regulatory practices. This situation would derail investments worth billions of euros by the private sector and provoke a decline in investor confidence.
Impact on Future Investments and Consumer Choices
The executives argue that the EC’s proposed changes would not only deter future service adoption by consumers and businesses but would also stifle innovation in network technology essential for keeping pace with advancing digital demands. Additionally, they believe that failure to properly regulate the fixed telecoms market could hinder Europe’s overall progress toward achieving its Digital Decade 2030 objectives.
In their call to action, the telecommunications leaders urged the EC to establish a coherent regulatory framework that adheres to a series of principles. These include preserving the ex-ante model to promote competition and stimulate investment, ensuring access to physical infrastructure, and expediting the completion of the Digital Networks Act before making any changes to the RRM framework. Such actions, they argue, are critical for fostering a competitive environment that benefits consumers through greater choice and improved service delivery.
The letter culminates with a sober warning about the future of Europe’s digital landscape. “Without a balanced, evidence-based regulatory approach,” they stated, “Europe’s digital future will continue to falter as global competitors race ahead, leading to weak productivity growth, stagnant living standards, and a less secure continent.” The executives concluded by calling on the EC to collaborate closely with industry stakeholders and national regulators to ensure that the regulatory framework supports both investment and competition for all players within the telecommunications ecosystem.
As Europe navigates the complexities of its digital transformation, the implications of these regulatory proposals will likely shape the landscape of broadband connectivity profoundly, affecting millions of users and the broader economy.