Jose A. Bernat Bacete (GETTY IMAGES)When talking about digital telecommunications networks, the first thing many think of is cutting-edge technology, antennas, satellites, internet… But the issue goes much further. These networks are critical assets that greatly affect security, economics, rights and values. Strategic tools that are essential for the EU's competitiveness and that must be a priority to guarantee European economic growth. Even more so in the current global context, dominated by the US and Asia, and in which the EU is lagging behind. In its latest State of Digital Communications 2024 report, the association of European Telecommunications Network Operators (ETNO) states that only 10 of the 114 network operators on the Old Continent are deploying pure or stand alone 5G mobile telephone networks. Europe's objectives are to achieve 5G coverage of 100% of the population by 2030. At the moment, the percentage reaches 80%. But the delays in the deployment of infrastructure that affect users are reflected both in a lower per capita investment and in the «weak general financial health of the sector» – according to ETNO -, something that is worrying in terms of competitiveness. The issue is complex. “The economic, social, technological, cultural progress and almost the very survival of the EU as a strategically significant entity is linked to the development of telecommunications infrastructure,” maintains its member Antonio Portilla Figueras from the Official College of Telecommunications Engineers (COIT). . Without them, for example, new cutting-edge digital services cannot be created, such as remote surgery, the connected or autonomous car, Industry 5.0, cyber-physical interfaces… To carry out all these projects, high-quality networks are needed. capacity that provide bandwidths in the range of hundreds of megabits per second (Mbps) and latencies in tens of milliseconds.
The risk of being a colony
In Portilla's opinion, the current moment «is critical.» For some time now, maintains the director of the ISDEFE-UAH Chair in ICT and Artificial Intelligence, the sector has warned that it must become aware of this reality or “we will see ourselves relegated to a mere technological colony with respect to our geostrategic rivals,” with China. , Korea and the US in the lead. The figures are eloquent. Fiber optic coverage in China in 2023 was close to 93%, with a very similar percentage in South Korea. The European average was 65%. In the case of 5G deployment, the EU is also far from both Asian countries, Japan and the US. In addition, of the 50 most important technology giants in the world, only four companies are European. This expert points out two of the main weaknesses of the sector tech in the EU: “partially obsolete and asymmetrical” regulation and “excessive bureaucratization.” On the other hand, the European research ecosystem is very powerful. However, it is not possible to transfer this research to innovation or to the industrial sector “due, above all, to the regulatory environment,” he laments. The ETNO report confirms a financing deficit of 174 billion euros between now and 2030, which, for that date, could leave 45 million people in the EU without broadband. “On the other hand, it will be increasingly necessary to increase the volume, speed and capacity of telecommunications infrastructure to enable the flow of content throughout the European Union,” maintain researchers from the Elcano Royal Institute, Raquel Jorge and Judith Arnal. , in a report on the EU connectivity package. The demographic rebound, the greater use of digital devices and the intensification of new technological applications explain this need. The analysts recall the “close relationship” that these infrastructures have with social challenges such as “inequality gaps” generated by the absence of networks in rural areas. Another cause that hinders the growth of the sector in Europe is the fragmentation of rules at the national level, which prevents progress towards a Single Electronic Communications Market. It happens that each country has its rules and defends its own interests. “This fragmentation limits the scale and growth of European operators, there are more than one hundred, as well as their ability to invest, innovate and be competitive,” add Jorge and Arnal.
Spain, leader in broadband
In Spain, telecommunications are considered an economic service of general interest such as water and energy supplies, transport routes, banking or the postal service. Its impact on the standard of living is evident. Some studies show that rural populations that have connectivity greater than 100 megabits per second (Mbps) manage to increase their average income by 1.4% compared to those that do not have it, as well as Social Security affiliations (in this case). case, 3.1%). In these places, the unemployment rate also drops to 0.7%. The president of the National Association of Telecommunications and Internet Services Operators (AOTEC), Antonio García Vidal, highlights Spain's competitive advantage over most European countries in broadband network infrastructure (with a coverage of 92.5 %) and data centers. A situation that “should be taken advantage of” but that, on the other hand, differs from the situation of the mobile connection. “Infinity of small towns with Giga-fiber connectivity lack a good mobile connection,” warns García Vidal. And another concern slips in: the spectrum is in the hands of large operators without wholesale obligations, to which the Government has increased the duration of their concessions between 23 and 69%. “This breaks any competition due to the substitutive nature of mobile services with respect to fixed services, and due to the lack of participation of alternative operators in any deployment or ease of access to mobile services,” he argues.