New-Tech Magazine Europe | Dec 2015 Digital edition

though consumers benefit from much improved services,” IDATE says. “In other regions consumers maintain or even increase their expenditure on mobile network services, in relation to their overall consumption.” The consequence is that European mobile network operators’ investment in infrastructure-to update their networks and deploy new technologies—has been almost flat even as such capital expenditures per capita grew sharply in the United States, Japan and South Korea. “This reflects the fact that MNOs are large corporations who cannot commit to investments that are not correlated to increasing revenues. In other words, MNOs worldwide are subject to the same constraints set by investors,” IDATE says. “EU MNOs are investing as much as they can, but their declining revenues simply prevent them from keeping up in the innovation and investment race with other regions.” But Europe’s wireless future is brighter than it seems: The cause of the present situation is known and can be fixed. The root of the problem lies in the EU telecommunication market regulatory framework that was adopted in the early 2000’s. “The relative decline of revenue in recent years for [European] Mobile Network Operators (MNOs) appears to be due to policy decisions aimed at maximizing short-term consumer benefits at the expense of long-term investment incentives,” IDATE says. “The data suggest this strategy is backfiring. The lower revenues in Europe have deterred MNOs from investing, which in turn delays the roll- out of networks and the adoption of

to “put investment at the heart” of its regulatory strategy. “The Digital Single Market initiative is an opportunity to adopt a pro- investment and pro-innovation mobile regulatory framework, enabling Europe to lead in mobile communication through its attractive market size, growth potential and technology expertise,” IDATE says. “The findings and data of this study suggest consumers, businesses and individual European economies will benefit from policy makers’ adoption of a balanced regulatory framework that encourages investment in mobile infrastructure and technologies.” Wassim Chourbaji is vice president and head of Qualcomm Government Affairs for Europe, the EU and MENA.

services by consumers. Consequently, the unit costs of some services to consumers are higher than in other regions.” But that framework is currently under review as EU officials stake out an ambitious effort to make Europe a technological leader. And the findings of the IDATE study suggest the effort would pay off. “Investment in mobile communication infrastructure creates local employment and significantly contributes to growth, as an enabling factor for the digitalization of other industries,” IDATE says. So with the EU making the DSM a top priority and politicians acknowledging the importance of investment and top-class connectivity there is hope the new regulatory framework will address these issues. IDATE expresses optimism that Europe can find ways

59 l New-Tech Magazine Europe