EU debates future of telecom regulations amidst competing visions

The European Commission’s Competition Directorate (DG COMP) and the Connectivity Directorate (DG CNECT) are at the centre of a critical debate over the future of the EU telecom regulations. That discussion highlights the struggle within the EU to balance regulatory harmonisation with market fragmentation.

DG CNECT advocates for increased consolidation in the telecom sector, arguing that the current fragmented landscape hampers competitiveness and investment compared to the more integrated markets of the US and China. In contrast, DG COMP warns that excessive national consolidation could lead to higher consumer prices and undermine the competition necessary for innovation.

As these discussions progress, DG COMP and DG CNECT are examining the implications of indirect deregulation in the telecom sector. Specifically, DG COMP has raised concerns that eliminating regulated sub-markets could increase the bureaucratic burden on national regulators, thereby reducing the effectiveness of oversight across the EU. That shift would transfer more responsibility to individual member states, potentially leading to inconsistencies hindering the EU’s telecom objectives. Meanwhile, while DG CNECT supports deregulation, it must consider the potential impacts on market dynamics and consumer protection.

DG COMP and DG CNECT are committed to fostering innovation within the telecommunications sector through strategic investments in future technologies. DG COMP emphasises the importance of competitive markets in driving advancements like edge computing and OpenRAN. At the same time, DG CNECT argues for regulatory frameworks and consolidation to facilitate these investments. Ultimately, their shared focus on innovation aims to enhance the EU’s telecommunications infrastructure and maintain its competitiveness in the global market.