{"id":27241,"date":"2025-01-14T23:25:24","date_gmt":"2025-01-14T23:25:24","guid":{"rendered":"https:\/\/peraltafinancing.com\/5g-technology\/why-europe-needs-a-connectivity-union\/"},"modified":"2025-01-14T23:25:24","modified_gmt":"2025-01-14T23:25:24","slug":"why-europe-needs-a-connectivity-union","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=27241","title":{"rendered":"Why Europe needs a Connectivity Union"},"content":{"rendered":"


\n<\/p>\n

Mario Draghi\u2019s report on the future of European competitiveness came with a grave warning for policymakers. The challenge facing Europe\u2019s economy is existential. And now, with the looming threat of increased tariffs on European exports to the United States, could the need for a new approach be any clearer?<\/p>\n

Draghi points to the profound innovation gap between Europe and our global competitors: European companies spend hundreds of billions less on research and development (R&D) than their US counterparts. The top investors in Europe are automative companies \u2013 like they once were in the US, more than 20 years ago \u2013 while in the US, tech companies lead R&D spending.  <\/p>\n

Europe\u2019s unicorn companies are abandoning it \u2013 a third of those founded between 2008 and 2021 have moved headquarters, primarily to the US. And since the millennium, real disposable income has grown almost twice as much for our peers living across the Atlantic.<\/p>\n

Vodafone shares Draghi\u2019s view: Europe must respond quickly to boost its productivity and growth. State-of-the-art connectivity can power this transition, digitalizing European manufacturing, supply chains and small and medium-sized enterprises (SMEs). We believe the moment has come for a new approach to deliver the economic transformation required. Europe needs a Connectivity Union.<\/p>\n

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Vodafone shares Draghi\u2019s view: Europe must respond quickly to boost its productivity and growth. <\/p>\n<\/blockquote>\n<\/figure>\n

Poor connectivity is holding back our economy. For every 100,000 EU citizens, there are around 100 5G mobile base stations. In China, there are 245 and South Korea has nearly 600.[i]<\/a> 5G mid-band coverage \u2013 ideal for bringing fast, low-latency connectivity to urban areas \u2013 is around 30 percent in Europe. In North America, it\u2019s at 85 percent. China sits at 95 percent.[ii]<\/a> Similar gaps arise in mobile subscription rates for 5G \u2013 if people can\u2019t rely on a signal, they won\u2019t sign up.  <\/p>\n

\"\"
5G can drive digital transformation for European manufacturing. Credit: Vodafone<\/em><\/figcaption><\/figure>\n

Businesses can\u2019t develop 5G-powered products, services and applications if 5G isn\u2019t available. There is a very real risk that poor connectivity in Europe becomes a bottleneck for industrial innovation \u2013 for factories trying to leverage the latest developments in artificial intelligence, for example \u2013 while companies in better-connected regions surge ahead.<\/p>\n

In Foshan, China, where 5G standalone is publicly available, thousands of manufacturing businesses are using the connectivity to improve their operations. As a result of 5G-enabled digital transformation, SMEs have reported labor productivity increases of 40 to 60 percent, manufacturing costs lowering by 25 to 35 percent, and equipment energy consumption reducing by 15 to 20 percent.[iii]<\/a> While similar business cases do exist in Europe, they are often limited to larger organizations with the resources to invest in private 5G networks. Europe\u2019s SMEs \u2013 99 percent of all businesses and employers of around 90 million people \u2013 are missing out.<\/p>\n

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Without publicly available 5G, it\u2019s Europe\u2019s SMEs that are missing out. Credit: Vodafone<\/em><\/figcaption><\/figure>\n

As Draghi argues, piecemeal regulation has put the brakes on progress. Some responsibilities sit with the European Commission, others with the member states and regulatory authorities. Few rules are aligned across the EU27, creating bureaucratic barriers and discouraging investment.<\/p>\n

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There is a very real risk that poor connectivity in Europe becomes a bottleneck for industrial innovation \u2013 for factories trying to leverage the latest developments in artificial intelligence, for example \u2013 while companies in better-connected regions surge ahead.<\/p>\n<\/blockquote>\n<\/figure>\n

For the other fundamental building blocks of a modern European economy \u2013 capital markets, energy and banking \u2013 policymakers have demonstrated ambition and acknowledged the need for cohesive union-wide goals. These regulatory \u2018unions\u2019 give a central direction to each, unlocking the power of the single market and providing better economic, social and security outcomes. Connectivity warrants the same attention.<\/p>\n

Europe should be the<\/em> world leader in developing and deploying next-generation connectivity and digital solutions. We need public funding for more ambitious research that links EU and member state programs with common union goals. More important still, our continent deserves a connectivity sector that can attract serious private investment, rapidly deploying the necessary capital to meet and exceed Europe\u2019s economic and sustainability targets.<\/p>\n

The outset of this new five-year term is the moment to deliver a \u2018whole economy\u2019 vision that lies beyond the remit of one commissioner or one member state. A new Connectivity Union can bring ambitious focus and purpose to the task ahead, uniting the Commission, national governments, industry, regulators and consumers in a shared mission to tackle the shortcomings in Europe\u2019s connectivity and deliver the economic prosperity our societies need.<\/p>\n

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A new Connectivity Union can bring ambitious focus and purpose to the task ahead, uniting the Commission, national governments, industry, regulators and consumers in a shared mission to tackle the shortcomings in Europe\u2019s connectivity and deliver the economic prosperity our societies need.<\/p>\n<\/blockquote>\n<\/figure>\n

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Joakim Reiter, chief external and corporate affairs officer, Vodafone. Via Vodafone.<\/figcaption><\/figure>\n

The Commission would not be starting from a blank page \u2013 it already has the blueprints. Like the Energy Union\u2019s vision for universally affordable, secure and sustainable energy, a Connectivity Union could focus on delivering the benefits of next-generation networks for every citizen. The Energy Union requires every member state to develop a national energy and climate plan, covering 10-year periods and based on a common template. Connectivity needs the same. The Energy Union emphasizes the need for a revised institutional set-up \u2013 reducing the number of regulatory bodies improves effectiveness. Connectivity needs the same. And the Banking Union calls for a single European rulebook \u2013 telecoms operators demand the same. These are but a few examples.<\/p>\n

As Draghi warns, there is still much to do. But it is not too late \u2013by welcoming the commissioners\u2019 mission letters, and embracing Draghi\u2019s call for change, we can turn the tide of European competitiveness. A Connectivity Union is the best place to start.<\/p>\n

vodafone.com\/public-policy<\/a><\/p>\n

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[i]<\/a> 5G Scoreboard \u2013 5G Observatory<\/a><\/p>\n

[ii]<\/a> Ericsson Mobility Report, June 2024 (Ericsson Mobility Report | Read the latest edition<\/a>)<\/p>\n

[iii]<\/a> GSMA 2023: 5G-Case-Study-Foshan-Manufacturing_2023-02-07-055453_zopq.pdf<\/a><\/p>\n<\/p>\n\n","protected":false},"excerpt":{"rendered":"

Mario Draghi\u2019s report on the future of European competitiveness came with a grave warning for policymakers. The challenge facing Europe\u2019s economy is existential. And now, with the looming threat of increased tariffs on European exports to the United States, could the need for a new approach be any clearer? Draghi points to the profound innovation […]<\/p>\n","protected":false},"author":1,"featured_media":27242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12020],"tags":[12544,17170,2993,8787,3426,13693,10855],"dealstore":[],"offerexpiration":[],"class_list":["post-27241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-5g-technology","tag-5g","tag-connectivity","tag-development","tag-europe","tag-growth","tag-sustainability","tag-union"],"yoast_head":"\nWhy Europe needs a Connectivity Union - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=27241\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Europe needs a Connectivity Union - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Mario Draghi\u2019s report on the future of European competitiveness came with a grave warning for policymakers. 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