“Sustainable competition,” not “maximum feasible competition,” is the goal European communications regulators should strive to support, the GSMA essentially argues.
The first of seven recommendations made by the GSMA is to “change objectives of the EU telecoms framework to target investment and sustainable competition in the long term interests of consumers.” An apparently growing number of EU regulators see a clear trade-off between policies that promote investment and policies that promote competition.
The goals are, in substantial part, in conflict. Though highly successful at instituting policies that have increased competition, those same policies have depressed investment, GSMA essentially argues.
“For Europe to catch up in 4G and become a leader in 5G, a fundamental change in approach to telecoms policy is required,” said John Giusti, Chief Regulatory Officer, GSMA.
Deregulation should feature removal of conditions in spectrum licences, such as wholesale access obligations, which are unrelated to the efficient allocation of spectrum, GSMA says.
The European Commission also “should examine what can be done to further reduce the costs of mobile network deployment, including the costs of sites, spectrum fees and other input taxes.”
More spectrum also is needed.
Also, regulations that set uniform targets for network coverage, or that equate network quality with speed, does not work, GSMA argues. Greater flexibility will lead to greater investment.
In the U.S. market, local regulators already have widely moved to such an approach, one might note.
Spectrum licensing also has to be simplified in the near term, with an eventual move to perpetual licensing.
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