ETNO, the association of the major telecommunications operators in Europe, recently published a report by the Boston Consulting Group, which analyzes the future of digitalization and the introduction of the 5G technology.
This study was published following ETNO's annual economic report, which found that investment per capita in Europe remained low compared to other regions. ETNO Director General Lise Fuhr emphasized the importance of future investments in 5G networks, optical networking, and digital innovations to build gigabit connectivity through Very High Capacity Networks (VHCN).
The new study shows that 5G alone could generate € 113 billion in annual GDP growth in Europe and create 2.4 million new jobs in 2025. The necessary investment to upgrade the fixed infrastructure to gigabit speeds is € 150 billion.
The COVID-19 crisis shows the need to accelerate the digital transition. Data show that more than 60% of nine-year-olds in the EU study in schools that do not have the necessary digital equipment.
Developing a fully digital school infrastructure will require an additional investment of € 14 billion per year.
The survey also found that one of four European companies with 10 to 250 employees does not have a website. The contrast between SMEs and large enterprises is significant. Given the investment gap, the digitalization of all European SMEs will demand another 26 billion euros a year.
According to the study, several factors lessen the willingness to invest in Europe, which leads to the reduction of investments. These factors include the lack of scale in the sector, excessive national priorities, regulatory pressure on returns through the entry of subsidized competitors, unflexible business models, and more.
On the issue of spectrum policy, the report notes the need for governments and regulators to set several competitive priorities, and that the European approach to spectrum allocation has led to less investment in infrastructure.
The study emphasizes that the European telecommunications sector is calling for urgent and rapid actions to mobilize all necessary resources so that Europe can build on a stable existing foundation.
The goal is to achieve a positive impact on society and ensure a strong development of the economies of the countries in the green transition and undergoing digital transformation.
