Telecom Industry's Investment Claims Questioned: EU 2030 Targets Within Reach
Telecom lobbying groups have been asserting that operators need substantial capital investment basics to manage traffic growth. However, a closer look at the figures reveals a different picture.
ETNO, representing major European telecom operators, admits that its members account for only 68.1% of the sector's total CapEx spending in Europe. Even with a conservative 70% network investment fidelity assumption, European telecom operators can still meet the EU's 2030 connectivity targets with a surplus of up to €141 billion, according to OMDIA's 2021 and 2022 reports.
Key players in Germany like Deutsche Telekom and smaller competitors associated with BREKO are investing heavily in 5G and fiber networks. These investments, along with those of other telcos, have totaled over €500 billion in the last decade. Despite these significant investments, there is no 'investment gap' when ETNO's figures are compared to a European Commission study on funding needed for EU's 2030 connectivity targets.
Telecom CEOs argue that total CapEx is not the same as 5G/FTTH investment, but ETNO does not provide a CapEx breakdown. Even if telcos have to shoulder 100% of the investments, there would still be a surplus of €15-41 billion by 2030.
The telecom industry's claims of needing substantial capital investments to manage traffic growth appear to be unfounded. With significant investments already made and a surplus expected even with conservative estimates, the industry seems well-positioned to meet the EU's 2030 connectivity targets.
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