Europe trails US in next-generation wireless

The European telecoms sector is falling far behind the US in next-generation wireless services after years of investment shortfall, a development likely to hamper the continent’s competitiveness for years to come.

From roughly the same level of spending in 2007, investment in the wireless industry in the US has increased by more than two-thirds in the past five years, while comparable expenditure has decreased slightly overall across Europe, according to a scathing new report by GSMA, the mobile industry body. The difference in spending began growing at a time when new superfast 4G mobile data technologies became available, such that about a fifth of US mobile connections are expected to be using mobile broadband over 4G, or LTE, networks by the end of this year, compared with just 2 per cent in Europe. Tom Philips, head of government and public affairs at the GSMA, which produced the report with Navigant Economics, the consultancy, described the report’s findings as shocking for the European sector. “The [investment] gap looks like it is getting worse, not better. Europe is so regulated that it cannot afford to invest. Everything in Europe is subscale,” said Philips.