It's often said that Europe is divided across many sectors, and unfortunately, this is also true in the digital sector, with a continental regulatory framework in the telecommunications sector proving increasingly complex, to the point of hindering competitiveness and slowing innovation. This is highlighted by a study conducted by the consultancy firm Arthur D. Little for Connect Europe, the association of European telecommunications operators. According to the report, telecommunications companies in Europe must address 34 regulatory obligations, often overlapping and inconsistent, with negative impacts on consumer clarity and the economic sustainability of the sector. At the same time, Big Tech remains largely excluded from equivalent obligations, thus creating a clear competitive imbalance.
The Connect Europe reform proposal
The study proposes a three-phase reform strategyThe first and perhaps most important is the simplification of regulations, eliminating obsolete and redundant requirements. Overregulation reduces transparency and clarity for consumers, while increasing costs for telecom operators. It can lead to inconsistency (e.g., notifications and confusion in the event of data breaches) or the imposition of additional regulations to protect customers, ultimately creating confusion (e.g., contractual information overload due to multiple transparency requirements).
The second is the guarantee of fair conditions between traditional operators and digital platforms. The study argues that functionally equivalent services are now subject to different consumer protection obligations and experiences depending on who provides them: telecommunications operators or large technology companies. Different consumer protection regulations for similar services provided by different operators, however, may leave consumers without the expected protections (for example, switching providers).
Finally, harmonizing rules across the EU to provide consumers with a consistent and protected experience. National variations in EU directives lead to inconsistencies in consumer rights and experiences across Member States, resulting in different rights and levels of service for consumers depending on their location, ultimately compromising the Single Market.
“European companies cannot compete with their hands tied behind their backs”
The aim of the report, the document states, is to highlight the key policy adjustments needed to restore the EU's overall competitiveness and digital ambitions in the telecommunications sector, while safeguarding and/or improving the end-user journey. This means: stimulating investments, accelerate the adoption of 5G, improve cross-border connectivity, and ensure fair digital rights for all European citizens. "European companies can no longer compete with one hand tied behind their backs. Radical simplification is essential to foster innovation and quality services," said Alessandro Gropelli, Director General of Connect Europe. "It's time to move towards horizontal, harmonized, and service-based regulation, in the interests of consumers and the EU's competitiveness," added Elisabetta Cafforio, Partner at Arthur D. Little.
