Whether on a laptop or cell phone: There should be stable internet connections throughout Europe. That is the aim of the EU Commission. To achieve this, more telecommunications providers could soon merge across borders.
The initial question was simple: Are Europe’s networks well equipped? Broadband, gigabyte network, digital network in general – everything that keeps the world running more and more every year, according to EU Internal Market Commissioner Thierry Breton. “That’s the most important thing,” he says. “We’re talking about network infrastructures, edge computing, service software, everything that will form the infrastructure foundation of tomorrow. So that our businesses and our consumers can easily reap the benefits of the ongoing technological revolution.”
Breton played a leading role in writing a 40-page white paper. It is based on proposals that the Commission has put together in discussions with stakeholders from business, regulatory authorities and politics in order to achieve more efficient networks. The basis for today’s and, above all, future digital and data-driven applications – such as safe self-driving cars, extensive telemedicine or the use of AI in climate protection and green transformation.
“One missed economic Opportunity for Europe”
Big ambitions that could be thwarted by the fact that the network also stops at national borders often enough, says EU Vice Commission President Margrethe Vestager. Telecommunications companies operate mainly at national level. “And we all feel that: When we travel through Europe, we notice that there are gaps in connection at the borders.”
There are 27 national markets with different network architectures, different levels of network coverage, national frequency markets and management and in some cases even different regulations, says Vestager. “This fragmentation is a missed economic opportunity for Europe.”
A Change of strategy
The Commission’s core goal is to pave the way for more cross-border mergers among telecommunications providers in Europe, creating more cross-border offers so that the large investments are worthwhile.
The EU Commission has also undergone a kind of strategic shift: just yesterday it gave the green light for the merger of the French telecom giant Orange with its Spanish competitor Másmóvil. The EU had previously stopped major takeover requests due to competition concerns.
More bandwidth, fewer threats
The second important chapter of the White Paper is cables. 99 percent of all data traffic is carried over submarine cables, says Vestage. “And these cables are used for many things: our daily communications, military operations, global financial movements.” They are a strategic infrastructure. Therefore, they would have to cope with increasing demands for bandwidth as well as new security threats from hacking to surveillance.
More maintenance and more security are needed, according to the two EU commissioners. As well as more and more docking points – around the Baltic Sea, on the Danish and Irish coasts and on the Mediterranean coasts.
By 2030 Gigabitspeed in all households
“These are some examples of the many solutions that this White Paper proposes to secure the future of Europe’s connectivity,” says Vestager. “And to ensure that both goals come together: on the one hand, a vibrant, cross-border marketplace for telecommunications companies, and on the other on the other hand, reliable and affordable connectivity for everyone, everywhere in Europe.”
Then that’s one of the big headlines of the EU’s digital strategy: By 2030, all households should be able to receive internet at gigabit speeds. So far, around 80 percent of Europeans are covered by the 5G mobile communications standard. Last year, the EU Commission confirmed that Germany had “serious deficiencies,” particularly when it came to fiber optic expansion. Nationwide, coverage is 19 percent – well below the EU average of 56 percent fiber optic coverage.
Kathrin Schmid, ARD Brussels, tagesschau, February 21, 2024 3:46 p.m