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Change in Telecom Priorities for Europe

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Published on : Nov 04, 2014

Less than one-fourth of Europeans can successfully connect to a high-speed smartphone data network. In comparison, about 90 percent of Americans can do so. Broadband speeds are extremely slow and bad Internet service has become a fact of daily life for many Europeans.

On the positive side, the price that Europeans pay for their broadband and cellphone Internet services is about half of what Americans pay. A European spends an average of US$38 for a cellphone contract per month, as stated by the industry group, Groupe Speciale Mobile Association.

The region’s policy makers at the top are planning to change that. They wish to invest and provide costlier services a much higher priority to abate anti-trust issues.

The descriptions of their plans are supposed to take effect now that a new European Commission initiated its five-year term on Saturday. The Commission is the executive arm of the European Union. The Commission is set to launch the new priorities in a flurry of new deals.

The heads of the Commission have quite recently given their support for plans that would ease the strict European rules for telecom mergers.

Many European politicians including Angela Merkel, the Chancellor of Germany, wish to witness larger telecom operators acquire the smaller, less-profitable competitors.

Andrus Ansip, the new European vice president for the digital single market, stated Europe needs to create a more consolidated market and incentivize private firms to make the required investments.

Companies in Europe have reported a total of US$85 billion in deals this year, which is more than twice of what they spent in 2012.

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