Europe.connected

5G with the Internet of Things – everyone connected to everything – is as transformational for small to large enterprises as 4G was for consumers. China and the US have understood 5G’s strategic importance and are investing at speed through scaled operators with strong balance sheets. This is in stark contrast to Europe, where regulation has promoted price over quality, leaving the sector fragmented and indebted, and the continent with a large investment gap.

Small and medium enterprises are the beating heart of Europe’s economy, and our post-COVID-19 recovery will be dependent on how well they are able to recover and thrive, driving innovation and job creation across the continent. This study analyses the experiences of SMEs through the crisis, from the start of the pandemic up until July 2020 – and it clearly demonstrates how digital has supported SME resilience throughout that period. We have also used this research to look to the future, consider how government digital policy can best support SMEs and ensure we do not see the ‘digital divide’ that was already evident in this area become further entrenched as a result of the COVID-19 crisis. We believe the findings are very relevant to governments as they put in place policies to ensure that SMEs have what they need to bounce back from COVID-19. This report includes expert independent analysis and evidence from Deloitte.

Policymakers recognise that gigabit connectivity propels the digital transformation of both industry and society. A successful rollout of 5G across Europe is a necessary condition for this European digital transformation. Therefore, consistent and predictable regulation is critical, supported by policies that promote development and tackle fragmentation. Despite this, there is an ongoing regulatory discussion on the issue of whether internationally harmonised cellular spectrum should be ‘set aside’ for private localised use instead of auctioned to whoever is able to create the largest value to society, including nationwide public networks.

In this report, we demonstrate that set-aside policies will lead to a significant consumer welfare loss, reducing the incentive for investment by distorting competition, inflating the costs of spectrum licences and limiting the ability of operators to build the best 5G networks possible for everyone. This report includes expert independent analysis and evidence from the consultancies Arthur D. Little and Compass Lexecon.

Vodafone believes in the promise of Europe. Despite the significant and important progress driven by the Digital Single Market, we believe that Europe needs a step change: one that turbo-charges investment and lays the foundations for top-class European digital infrastructure through the creation of better conditions for digital solutions made in Europe and which builds trust in the digital society, empowering European citizens.

The EU’s strategic agenda spanning 2019-2024 will be pivotal. This white paper examines policies that could address the significant challenges that Europe faces today and which will ensure that Europe is in a position to be a global leader in the next phase of the digital revolution.

In the digital deployment report, we have identified six key policy aspects that, we believe, impact investors’ abilities to deploy competing fixed and mobile digital networks in a given market. Governments and policymakers can stimulate investment by examining their policies in each of these areas in comparison with peers and ensuring they have a plan to adopt best practice. This report provides policymakers with the best practices and the degree of variation across our 12 EU markets and makes policy recommendations to improve the ease of digital infrastructure deployment.

The value IoT could bring to Europe is well recognised. If the regulatory landscape is right, these benefits could transform Europe’s standing in terms of global competitiveness and 5G connectivity. In order to unlock these advantages, a new cross-sectoral regulatory framework is needed.