EU Telecoms Can Exceed 2030 Connectivity Targets with Current Investments
European telecom operators can exceed the EU's 2030 connectivity targets with substantial surplus, even with conservative network investment estimates. Despite telco CEOs' claims of an 'investment gap', a European Commission study disputes this.
ETNO members, representing 68.1% of Europe's total CapEx spending, could reach the EU's targets with a 70% network-related investment. This is supported by OMDIA's Telecoms CapEx Tracker, which shows an average of 70% of total telco CapEx goes to networks. In 2022, EU telecom companies spent approximately 20% on Access, 15% on Transport, 10% on Civil infrastructure, 30% on Equipment and end devices, and 25% on Core infrastructure.
If telcos dedicated 100% of their investments to networks, they would still have a surplus of €15-41 billion by 2030. This is despite Europe's total telecom investment reaching €56.3bn/year. However, telco lobbies ETNO and GSMA demand €20 billion in network fees from CAPs per year, which exceeds the maximum annual amount telcos would have to shoulder.
Telecom operators have invested over €500 billion in the last decade for fixed and mobile networks, including FTTH and 5G. Despite their claims, the European Commission study suggests telcos have sufficient resources to meet EU connectivity targets without additional fees.
