The chief executives of major European telecoms operators have called upon the European Commission to accelerate policy and regulatory changes that will enable them to return to positive growth in revenues and cash flow, and allow further…
The chief executives of major European telecoms operators have called upon the European Commission to accelerate policy and regulatory changes that will enable them to return to positive growth in revenues and cash flow, and allow further consolidation.
Speaking at the ETNO summit in Brussels today, EC Commissioner Neelie Kroes stressed that “the regulatory regime needs to send the right signals. Signals that enhance the prospects for growth in this sector […]”. She said the Commission will be rolling out changes over the next few months.
While a panel of CEOs supported the Commission’s proposed changes, first announced in July, many expressed frustration that it is moving too slowly.
Telefonica COO Jose Marie Alvarez Pallete said current regulatory constraints have prevented the company from making acquisitions and investments.
“It is good news that the Commission has started to address these issues but we need to accelerate. We don’t want to miss an opportunity,” he said. He also called for changes to competition policy that enable greater opportunities for M&A and network sharing.
“We need to invest but the rules of the game need to be clear. We are a little bit late but we can still rush.”
Belgacom CEO Didier Bellens and KPN CEO Eelco Blok both argued that telcos and cablecos should be subject to the same regulations in order to create a truly level playing ground.
Both CEOs said they were prepared to invest in their networks if regulatory climate becomes more certain and stable.
“To be able to compete, we need the same regulatory framework,” Blok said. “’We are running out of time. We need to be able to accelerate investments in broadband asap”.
Vodafone CEO Vittorio Colao said he believed in-country consolidation is imperative. “There are not enough in-country consolidation deals in Europe […] We should be a bit more American in our approach,” he commented.
