European telcos sulk about EU direction on regulation and investment

Following an opaque and arcane ruling from a European Parliament committee there is concern that the continent is losing its way on telecoms.

The Committee on Industry, Research and Energy voted on a broad range of issues surrounding the involvement of the Eurocracy in the telecoms business. Among the conclusions of the vote were a move to reduce the cost of long distance calls within Europe, which seems to be an ideological move equivalent to the abolition of data roaming charges.

While this seems like another telco revenue stream under attack, most of the moaning was reserved for the realisation of fears expressed prior to the meeting; that the EU tending towards increased regulation and decreased investment in telecoms. This is exactly the opposite of what operators want.

The core issue is the direction of the European Electronic Communications Code – a collection of rules, regulations and initiatives originally designed to give European telcos a shot in the arm. Organisations such as ETNO (European Telecommunications Network Operators’ Association) have consistently complained about its apparent retreat from its lofty initial ambitions.

“For the Gigabit Society vision to be credible, the Code needs to stick to its original objectives,” said Lise Fuhr, ETNO Director General. “Without investment incentives and spectrum reform, European citizens and businesses risk being stripped of superfast networks and innovative services.”

Here are ETNO’s specific concerns:

ECTA (European Competitive Telecommunications Association) has also expressed concern, while the GSMA seems to have been too busy promoting its money-spinning events to comment. The real danger for European telcos is that their interests are sacrificed at the altar of super-state dogma. The EU seems to be obsessed with creating a United States of Europe and apparently considers the profits of its incumbent telcos to be a small price to pay.