Ericsson: 'Europe slow on 5G, urgent need for Tlc market reform'

The message is clear: time is running out and "Europe cannot afford to lag behind. Following the recommendations of figures like Mario Draghi and with a pragmatic approach, the new European Commission has the opportunity to relaunch the continent as a global technology leader. But courage is needed. And, above all, immediate action'. Jenny Lindqvist, head of Ericsson for Europe and Latin America, does not mince words when outlining the future of European telecommunications.

'Europe is lagging behind,' says the number two of the Swedish telecommunications multinational. The alarm concerns 5G, a technology that represents not only a breakthrough in telecommunications, but a horizontal platform for the digitisation of industries and societies. While markets such as the United States, China and India are advancing at a rapid pace, the Old Continent is struggling to keep up, trapped by a structural fragmentation of the market and policies that are not always far-sighted.

'One of the main reasons,' he explains in this interview with Il Sole 24 Ore, 'is the current structure of the European market. In Europe there are around 100 mobile operators, with an average of 4 million subscribers per operator. In the United States the number is around 100 million, while in China and India the approach is different, with individual operators serving 200 to 400 million subscribers. The reason for this disparity is that we have not allowed market consolidation in Europe'. In order to reverse the trend, therefore, 'a consolidation process is needed that allows operators to grow and invest in modern infrastructure. This does not only mean an increase in competitiveness, but also the adoption of targeted measures, such as the coverage obligation for 5G.

Another critical point is the management of the radio spectrum, a vital resource for telecommunications. Europe, according to Lindqvist, should push for more harmonisation between the different member states. And 'instead of aiming to increase revenues from spectrum auctions, it would be useful to tie them to coverage obligations for 5G in the medium band, the most valuable one. Rising spectrum costs in fact limit infrastructure investments in the short term'.

The consequences of not catching up are worrying. "5G is essential for artificial intelligence and many other technologies of the future," Lindqvist warns, with the idea that without solid infrastructure, Europe risks losing the race not only for the present, but also for the next decade, with a negative impact on the competitiveness of its industries and the emergence of new businesses.