Anne Bouverot, President of the GSM Association, said: "Europe was a leader in the mobile industry in the early days. There were a large number of pioneering and innovative companies. More than 3.2 billion people around the world still benefit from their innovation. However, the reality disclosed in this report is thought-provoking. , That is, Europe has lost its mobile leadership and is far behind some other advanced economies, including the United States. Although there are many factors leading to the current status of Europe, it is clear that enlightened policy reforms will bring improvements to the EU Of consumers create huge benefits and drive economic growth. "
Comparison of two mobile markets: EU vs. US
Just five years ago, the performance of the European mobile market was comparable to that of the United States, and even exceeded that of the United States. Since then, however, things have turned sharply, and the report shows a striking comparison between the two markets:
On average, American consumers spend more each month than EU consumers, and use mobile services more frequently. Voice service usage is five times that of the latter, and data usage is nearly double.
The United States is far ahead in the development of next-generation technologies; by the end of 2013, nearly 20% of the network connections in the United States will be LTE networks, compared with less than 2% in the European Union.
The average mobile data connection speed in the US is now 75% faster than in Europe, and will reach more than twice the latter by 2017.
Mobile investment in the United States has surpassed that in Europe. Since 2007, capital expenditures in the United States have increased by 70%, while the European Union has been declining and the gap has been widening.
Jeffrey Eisenach, Managing Director of Navigant Economics, said: “Although several factors have contributed to this gap, it is partly due to the relatively inefficient mobile market structure in Europe. The EU ’s regulatory policies have resulted in a fragmented market structure that prevents operators from adequating The use of economies of scale and scope has curbed the growth of the mobile industry chain. "
Focus on promoting investment and innovation
Fundamental regulatory reforms are needed to restore growth in the European mobile industry. Specifically, we must focus on promoting investment and innovation, rather than directly managing prices. The GSM Association has made the following recommendations to help establish a progressive new regulatory environment that matches current economic realities:
Make spectrum allocation and coordination a top priority – The European Commission ’s top priority is to resolve the slow first digital dividend issuance process. Most member states have already passed the allocation deadline. In the next few years, Europe will face a serious shortage of spectrum, which must be resolved now. The key is that the European Commission should ensure that the 700MHz spectrum is allocated for future mobile broadband services. The most important thing is that its release should be consistent with the internationally coordinated spectrum plan.
Promote efficient integration – The European Commission should simplify merger reviews and adopt a more cautious approach to implement remediation, thereby reducing barriers to efficient integration in the mobile market. The partiality to new entrants in the industry should stop, allowing market forces to determine the most appropriate number of industry members.
Promoting European Single Mobile Market-European single mobile market can be a key driver of growth. The GSM Association believes that the European Commission must introduce major regulatory measures to develop a loose and simplified pan-European regulatory approach. This will require a comprehensive review of regulatory enforcement methods across the country and identification of areas that can be more efficiently coordinated across Europe, such as consumer protection. Immediately introduce incentives to promote broadband investment, including removing planning and network sharing restrictions and providing subsidies for rural coverage.
Attracting investment and innovation in Europe-The European Commission should immediately develop a bold plan to help Europe become the center of mobile innovation and investment, refocusing its policies on promoting innovation and making full use of the unique potential of a single market. The European Commission should develop a series of innovative pan-European mobile public-private partnership programs to promote growth, build social inclusion and promote investment in new technologies and services.
Bouverot added: “We believe that the implementation of these major policy reforms is essential to reshape Europe ’s mobile leadership, drive new industry growth and investment, and (most importantly) create significant social and economic benefits for the European people . "
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