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Reforming Europe's Telecoms Regulation to Enable the Digital Single Market

Author

Listed:
  • Wolfgang D. BOCK

    (Boston Consulting Group, Munich)

  • Maikel WILMS

    (Boston Consulting Group, Amsterdam)

  • Peter SOOS

    (Boston Consulting Group, Budapest)

  • Bjoern ROEBER

    (Boston Consulting Group, Duesseldorf)

Abstract

In a few short years, Europe has gone from leader to laggard in advanced digital networks. Many markets in Asia and North America now enjoy fiber access penetration up to 20 times higher and LTE penetration up to 35 times higher than in the EU. As a result, European consumers and businesses experience slower connections, leading to less value and slower economic growth. This report examines the regulatory reasons why Europe is falling behind, and it offers a strategy and roadmap for reversing the current negative trends. The three main inhibitors of investments identified by the report are, (a) the inability of telecom operators to make a fair return, (b) the mandated inefficiencies in the mobile sector, (c) the lack of a harmonized pan-European approach. To counteract this scenario, The Boston Consulting Group (BCG) has developed a strategy to redress the situation and suggests the following five measures to unlock EU telecoms' growth potential: (1) substantially deregulating fixed-line wholesale access, (2) creating a level playing field for network operators and OTT digital service providers, (3) modernizing spectrum policy across Europe to create a sustainable infrastructure competition that incentivizes network investments, (4) permitting healthy consolidation in mobile, (5) harmonizing rules and procedures to unlock synergies between countries.

Suggested Citation

  • Wolfgang D. BOCK & Maikel WILMS & Peter SOOS & Bjoern ROEBER, 2014. "Reforming Europe's Telecoms Regulation to Enable the Digital Single Market," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(93), pages 17-34, 1st quart.
    • Handle: RePEc:idt:journl:cs9301
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    References listed on IDEAS

    as
    1. Bourreau, Marc & Dogan, PInar & Manant, Matthieu, 2010. "A critical review of the "ladder of investment" approach," Telecommunications Policy, Elsevier, vol. 34(11), pages 683-696, December.
    2. Wallsten Scott & Hausladen Stephanie, 2009. "Net Neutrality, Unbundling, and their Effects on International Investment in Next-Generation Networks," Review of Network Economics, De Gruyter, vol. 8(1), pages 1-23, March.
    3. Dogan, Pinar & Bourreau, Marc & Manant, Matthieu, 2010. "A Critical Review of the “Ladder of Investment†Approach," Scholarly Articles 4777447, Harvard Kennedy School of Government.
    4. repec:hum:wpaper:sfb649dp2009-039 is not listed on IDEAS
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    Cited by:

    1. Serge J.H. Gijrath, 2017. "Telecommunications networks," Competition and Regulation in Network Industries, , vol. 18(3-4), pages 175-197, September.
    2. Amendola, Giovanni Battista, 2015. "Ultra-Broadband For All In Europe: Can Access Regulation Hinder Innovation And Welfare Maximisation?," 26th European Regional ITS Conference, Madrid 2015 127120, International Telecommunications Society (ITS).
    3. Karamti, Chiraz, 2019. "Lopsided effects of telecom reforms on mobile markets in the enlarged EU: Evidence from dynamic quantile model," Telecommunications Policy, Elsevier, vol. 43(3), pages 238-261.

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    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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