EU’s broadband challenge, part 2: Kroes calls for a digital single market

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Asserting that telecommunications networks are the foundation of the wider digital economy and that every sector depends on connectivity, the European Commission plan calls for a number of provisions. To start, there should be simplification and reduction of regulation for telecommunication companies. While falling short of a pan-European license, carriers can at least have a single EU authorization which is accepted by all national regulatory authorizes. Next is coordination of spectrum allocation, which seems to be a no-brainer given the small size of many European countries. The EU report chastises national governments and regulators for “short-term interest in maximizing revenue from spectrum auctions (that) sapped large sums from many telecoms companies, eating away at investments in network build-out.” Allowing broadband providers to operate across borders, rather than having to create distinct and increasingly obsolete national operating entities, would go a long way to improve the efficiency and scale of broadband deployment. Additionally removing restrictions on consolidation among providers would allow providers to get a business case for infrastructure investment and improve their terms for raising capital.

EC Vice President Neelie Kroes and the Digital Single Market Committee deserve credit for taking on a project that is long overdue. However it appears that it may be too little, too late. Without giving reforms the necessary teeth, such as allowing consolidation, the plan may just be kicking the can down the road. The next blog will analyze the barriers to reform to realize the digital single market.


EU’s broadband challenge, part 2: Kroes calls for a digital single market