Brussels, 05/06/2013 (Agence Europe) - The European Union is lagging behind the United States with regard to deployment of next generation wireless networks, deplores the GSMA association - which represents the interests of mobile operators in Europe - in a new report comparing European and American performance. “There is broad agreement that the EU mobile wireless market is underperforming relative to other advanced economies, including the US (…) We recommend reforming harmonising spectrum policies, permitting efficient levels of consolidation, and promoting innovation by fostering dynamic competition”, the authors of the report state.
The report deplores the fragmentation of the European market and the differing national regulatory policies that prevent operators from achieving economies of scale and put a brake on the growth of the mobile wireless ecosystem. This fragmentation also penalises consumers in their choice. Unlike the EU, the USA is increasing its investment in connection speed - which is also widening the gap between the two continents. Lastly, the USA is very active in the deployment of LTE (long-term evolution) networks, which are crucial for the smooth operation of next generation mobile services.
In order to ensure a return to growth in the mobile wireless market, the EU should revise its reforms, warns GSMA. In particular, the EU should (i) adopt a coordinated policy on the radioelectric spectrum, including the modalities for allocating frequencies; (ii) reduce the impediments to efficient consolidation by simplifying merger approval rules and adopting a more cautious approach to the imposition of remedies; (iii) refocus its policy so as to favour a competitive and dynamic market, and encourage innovation rather than preserving competitors and targeting short-term price cuts. “The mobile wireless marketplace is extremely dynamic. While the current performance of the EU market is below par, sensible policy reforms could bring rapid improvement, creating substantial benefits for EU consumers and spurring accelerated economic growth”, GSMA concludes. (IL/transl.fl)