European telco investment drops and connectivity gap remainsEuropean telco investment drops and connectivity gap remains

The statistics may be new but the message is not. The artist formerly known as ETNO reiterated what we have heard many times before: 5G coverage is Europe is some way behind the US and key Asian markets, while the continent is being left in the dust on 5G standalone; a fragmented and over-regulated market is stifling competitiveness; and we're not going to hit those oft-cited 2030 Digital Decade targets without increased investment.

The familiarity of the memo doesn't make it any less accurate, of course. But while many in Europe have doubtless grown weary of hearing it, Connect Europe is clearly keen to have its say now the new European Commission – and specifically commissioners Henna Virkkunen and Teresa Ribera Rodríguez – is in place.

Connect Europe's 2025 State of Digital Communications report, based on research from Analysys Mason, shows that total telecom operator investment in Europe stood at €57.9 billion in 2023, the most recent year for which are available. While that's a huge sum, it represents a slide of just over 2%.

Keen to pile on the gloom, the report adds some broader context: investment per capita in Europe was €117.9, which is just over half the €226.4 recorded in the US and some way behind Japan's €187.6.

"This downward trend happens at a time when Europe is still far from its gigabit targets," Connect Europe noted in a statement accompanying the report.

Key amongst the EU's Digital Decade targets is full coverage from 5G and gigabit-capable networks by 2030.

As of 2024, gigabit-capable networks covered 82.5% of Europe, the report notes. By comparison, the US could claim 90.3% coverage, Japan and South Korea 93.9% and 97% respectively, and China 99%.

There is a bright spot for Europe in FTTH. The continent can claim 70.5% population coverage, putting it ahead of the US – currently a rapidly-growing fibre market – which has 54.8%. However, the report estimates that around 45.4 million Europeans will still lack access to a fixed gigabit connection by the end of the decade.

When it comes to 5G, Europe was projected to have 87% coverage by the end of 2024, up from 80% 12 months earlier. Despite that growth rate, it is still a laggard. China comes in at 90% 5G coverage, Japan 97%, the US 98% and South Korea 99%.

And the gap is significantly wider when it comes to the rollout of 5G standalone networks. We have heard industry stakeholders bemoan operator reluctance to take the plunge with 5G SA many times in recent years, so it comes as no surprise to learn that 5G SA covered just 40% of the European population by end-2024, compared with 91% in North America. The figure stands at 45% in Asia-Pacific, but that's a huge market with a lot of variables.

"Strong and innovative operators are crucial to build a European technology stack and boost competitiveness. Deregulation and more scale are both needed to free up investment and ignite innovation," said Alessandro Gropelli, Director General of Connect Europe.

No prizes for guessing what he's getting at with that comment. This is another report designed to convince European policymakers to back consolidation by presenting it as a potential driver of the continent's competitive position on the global stage.

Commissioner Virkkunen is charged with overseeing the path to those 2030 targets and, amongst other things, is working on the upcoming Digital Networks Act, which should play its part in getting there. As such, Connect Europe joins a long list of stakeholders keen to have its say on what new legislation should entail. This is unlikely to be the last missive we see from industry regarding the state of connectivity and competitiveness in Europe.