GSMA And CEOs Of Mobile Operators Set Out Key Success Factors For An Effective EU Telecoms Single Market

BRUSSELS, March 7, 2014 /PRNewswire/ -- Anne Bouverot, Director General, GSMA yesterday sent an open letter to Commissioner Neelie Kroes, Vice-President of the European Commission, setting out the key elements needed to deliver a telecoms single market to drive growth and employment across the region.

The letter was endorsed by the following CEOs of leading European mobile operators:

• Timotheus Hottges, CEO, Deutsche Telekom AG
• Christian Salbaing, Deputy Chairman, Hutchison Whampoa Europe
• Stephane Richard, Chairman and CEO, Orange
• Marco Patuano, CEO, Telecom Italia
• Cesar Alierta, Executive Chairman and CEO, Telefonica
• Hannes Ametsreiter, CEO, Telekom Austria Group
• Jon Fredrik Baksaas, President and CEO, Telenor Group and Chairman, GSMA Board
• Johan Dennelind, President and CEO, TeliaSonera
• Jo Lunder, CEO, VimpelCom
• Vittorio Colao, CEO, Vodafone Group

Europe was long viewed as a pioneer in mobile, but is now lagging behind other regions in the deployment of mobile broadband, particularly in 4G. Despite having the world's highest unique subscriber penetration rate at 80 per cent, Europe is the only region to see revenues decline – from €162 billion in 2010 to €142 billion in 2013(1). However the mobile industry can play a key role in the European recovery, supported by more comprehensive policy reform to deliver a true single telecoms market that encourages investment in mobile broadband connectivity, enables innovation and helps build consumer confidence in mobile services.

Below is the text of the letter:

Europe's telecoms network operators are facing decreasing revenues and reduced market values compared with operators in the U.S. and Asia, and with players across the ecosystem. This is impairing our ability to invest in the communications infrastructure needed to put Europe back on the path to growth and jobs, and to restore its global competitiveness.

We share the European Commission's view that a competitive telecommunications single market can help meet this challenge and underpin growth, employment and citizen welfare across the European Union.

We believe the following elements are critical to its success:

1. Modernising Regulation
   An essential element to the telecoms single market is the elimination of outdated and unnecessary layers of regulation, more harmonisation at the European level, and the consistent application of rules irrespective of the technology being used, who is providing the service, or where individuals are located.
2. Consolidation for Investment
   The evolution of Europe's antitrust framework to support market driven restructuring and consolidation will be necessary for redefining the investment climate and driving Europe's competitiveness.
3. Spectrum for Growth
   Broad and bold reform to the management of Europe's spectrum assets is required. It should be focused on the timely release of new capacity that is harmonised across the single market, and allocated with the objective of driving long-term growth and investment.
4. A Level Playing Field for All
   Even-handed regulation across the value chain is needed to open up opportunities for all players to offer competing new internet services, together with innovative, interoperable and secure telecommunications services. Operators must have the commercial freedom to develop new business models, innovate at the network and service level, and offer customised services in order to restore the investment climate and drive innovation and competition in the global marketplace.
5. Trust for Take Up and Use
   Privacy and security are fundamental to building trust and confidence in the uptake and use of new digital services by EU citizens. We must address the current patchwork of regulations, which compromises the effective and consistent protection of consumers across the digital value chain.

Notes to Editors

(1)Source: GSMA Intelligence: www.gsmaintelligence.com

About the GSMA
The GSMA represents the interests of mobile operators worldwide. Spanning more than 220 countries, the GSMA unites nearly 800 of the world's mobile operators with 250 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and Internet companies, as well as organisations in industry sectors such as financial services, healthcare, media, transport and utilities. The GSMA also produces industry-leading events such as Mobile World Congress and Mobile Asia Expo.

For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.