Seventeen of Europe’s leading telecom executives have called on EU policymakers to “correct the course” of upcoming digital reforms, warning that current rules risk constraining the investment needed to strengthen Europe’s technological sovereignty.
In a joint statement, executives from Orange, Deutsche Telekom, Telefónica, and other major operators said connectivity should be treated as the foundation of Europe’s ambitions in artificial intelligence, cloud, defence technology and future digital infrastructure.
Europe’s connectivity ecosystem contributes around five per cent of GDP. Telecom operators invest €64bn annually. But the CEOs estimate that Europe still needs €475bn more.
“The main priority right now is to create the conditions for Europe’s telecom sector to invest and innovate at the scale Europe needs,” Oscar Berardi, Communications Manager at Connect Europe, told EU Perspectives. “Connectivity is the foundation for so many of the technologies Europe wants to lead in—from AI and cloud to defence tech—so we need a regulatory framework that strengthens, rather than constrains, that investment capacity.”
Demands for the Digital Networks Act
At the centre is the Digital Networks Act. “We would like to see a much stronger focus on investment, simplification and scale,” Mr Berardi said. CEOs argue it does not do enough to improve investment and innovation. Their call focuses on four areas: freeing up capital for network deployment, allowing fibre investment to follow market demand, modernising regulation for newer networks and reducing bureaucracy.
One of the clearest demands concerns spectrum. Businesses want indefinite licences by default, and a minimum of 40 years in exceptional cases. European telecom operators have spent €110bn on spectrum licences over the past 12 years, according to the statement. The industry argues that moving away from frequent auctions allows more capital to be channelled into fibre, 5G and future 6G networks.
Fibre: more demand, fewer deadlines
The industry is also pushing back against mandatory timelines for switching off copper networks. European telecom operators invest more than €30bn each year in fibre-to-the-home, according to the text. But CEOs argue that changing to fibre should be driven by deployment conditions, consumer choice and market demand. Not regulatory mandates.
They also want Brussels to reconsider how older telecom rules apply to new infrastructure. The executives argue that regulation designed for copper networks should not simply be transferred to fibre markets. Besides, they want more flexibility under net neutrality rules.
Cybersecurity rules carry a €40bn bill
Alongside the Digital Networks Act, CEOs warn that planned changes to the Cybersecurity Act could undermine Brussels’s investment goals. The changes could require operators to remove equipment from designated high-risk third-country suppliers. The industry estimates it could require up to €40bn in replacement costs.
Executives argue that the proposed requirements could further constrain operators’ ability to invest. “Security objectives need to be pursued through a proportionate, risk-based approach that does not unnecessarily divert billions away from fibre, 5G and future 6G investment,” Mr Berardi said.
Will connectivity feature in the SOTEU?
The intervention came a day before European Commission President Ursula von der Leyen delivers her State of the Union address.
To Connect Europe, the industry wants connectivity to be recognised as part of the broader debate around European technological sovereignty. “Given the strong focus on competitiveness, technological sovereignty and reducing Europe’s strategic dependencies, we would certainly hope that connectivity is recognised as an essential part of that equation,” Mr Berardi concluded. “Europe cannot credibly pursue technological sovereignty without strong European connectivity infrastructure underneath it.”
