Towards a True Telecoms Single Market: European Perspectives and Danish Realities
Vivek Badrinath, Director General, GSMA

Thank you, Jakob, for the warm introduction, and for your partnership in making this event possible as we join forces to drive Europe’s digital transformation.

Excellencies, ladies and gentlemen, good afternoon.
I am here today as a European, because my heart is tied tightly to Europe.
It’s where I live, and it’s what I feel.
But I also stand here today representing the global mobile industry…
An industry I am very proud of, with its 30-plus-year history and its central place in all our lives.
But as a European, I am disappointed.
That sounds dramatic, but it is not an exaggeration.
I am disappointed that while others competed and raced ahead, Europe was somehow distracted and has been standing still.
Today’s world is moving fast…
But Europe has stood still while the US, China, and other parts of the world run faster.
How is this possible?
EU telecoms leadership began here:
This is the group of state employees… from across Europe… who created the GSM standard in 1987… that led to the very first GSM call in June 1991.
This group hoped that… eventually… 10% of the world would have a 1G phone.
They moved at rapid speed, intent on building technology that would leave its mark.
And today 5.8 billion people are using a mobile phone.
What a win for Europe.
But Europe is winning no more.
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And it’s not for lack of analysis…
… because Europe’s strangulation has been much analysed.
While other regions are innovating, growing, and giving their economies and citizens all the benefits of high-speed connectivity… Europe is lagging behind.
Let me show you:
You can see here that Europe is trailing far behind the US and China.
In the US, 3 players have raised 5G coverage to 98% and lowered consumer prices by 12%.
And market valuation is high, which investors love.
But Europe has a different story to tell…
In the last 10 years, operators have invested hundreds of billions of their own funds into networks, particularly on 5G roll-out, but it simply hasn’t been enough to keep up with growing traffic demands.
The EU itself recognises that at least €200 billion more is needed to make our networks fit for today, and that’s a modest estimate – without considering futureproofing and security needs.
It is simple – European operators have less ability to invest because they don’t have scale.
Today, nearly 100 operators are serving customers across 27 member states.
That’s an operator-to-population ratio of about 6 or 7 million customers.
Of course, each operator doesn’t have equal market share, but these numbers give you a sense of market scale.
Here in Denmark, we have 4 main MNOs and a high number of MVNOs sharing a market of just 5.4 million unique mobile subscribers…
In the US, this is about 130 million customers…
In India... it’s about 270 million...
… and in China… 450 million.
Unsurprisingly, the market value of the sector has decreased over the past decade, leading operators to divest, sell assets, and exit countries.
Mario Draghi’s report states that the total market capitalisation of the EU’s telecom sector fell by 41% from 2015 to 2023 to reach around €270 billion, compared to over €650 billion for US telecom operators.
The data is clear.
The opportunity to scale in Europe would open a completely different world for us.
Consolidation brings scale, and scale is king.
Ideas and innovation go nowhere without scale and the right environment for investment.
And this is now recognised far and wide, including by Mario Draghi and Enrico Letta…
Europe’s global competitiveness can only be resurrected with best-in-class digital infrastructure and services,
… and lifting the over-regulation and structural issues that are strangling investment, innovation and productivity.
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There is no more need for analysis.
We have all the data that we need.
It is staring us in the face.
In taking up the Presidency of the European Union, and the upcoming Digital Networks Act, Denmark has an historical responsibility to allow the mobile industry…
… to boost economic growth and resilience in Europe…
… to deliver better value for European consumers…
… and to get back out there to compete globally, shaking off digital dependencies on other regions.
This is the moment to line Europe up for world-leading status.

Take the case of AI, which is front of mind for all business leaders right now.
AI needs all the capabilities invested in strong mobile networks.
As AI technology is released across the ecosystem, which is happening at lightning speed, we need networks that are ready for the integration of AI.
AI depends on Telco.
And Telco needs to be ready, with 5G running at its full potential as it was designed: with network slicing, low latency, and possibly Mobile Edge computing.

I have no doubt that mobile operators can deliver what is required for the future of Europe with:
… a single market with competition policy reform and merger regulation…
… a reduction in the regulatory burden…
… less uncertainties in the investment environment…
… and fairness.
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Europe has created many of the technologies that have connected the planet, from the GSMA standard that led to the first GSM call… to the World Wide Web.
Europe has the mindset, the history, the networks and the people. We cannot uphold Europe’s values, without a strong infrastructure.
As a European, I believe we can get back to winning the game.
This opportunity is now before the Danish presidency. We need to be fast as the game is underway.
… Europe deserves the chance
… and Europe is up to the task
… Together let’s make sure Europe wins again.

Thank you.