Brussels, 25 September 2024
The European Commission, the European Investment Bank and the European Investment Fund held a discussion on the future of private investments in 5G technology.
The 5G Investment Summit, organised by the 5G for Smart Communities Support Platform (5GSC-SP), brought together over 40 representatives across the 5G industrial ecosystem, private and institutional investors, and EU Institutions. Participants discussed a study, commissioned by DG CONNECT, that focuses on triggering, accelerating, and widening private investment in 5G networks and aligning with the European Commission’s White Paper titled “How to Master Europe’s Digital Infrastructure Needs”.
Keynote address
Ms. Kamila Kloc, Director for Digital Decade and Connectivity at the European Commission emphasised the need to accelerate the EU’s digital transformation for people, businesses, and the environment, in line with the Digital Decade’s objectives and targets and to ensure connectivity for all. As highlighted in the 2024 Report on the State of the Digital Decade, the full potential of the (Digital) Single Market remains untapped, and the high fragmentation across Member States is a significant concern. As such, Ms Kloc highlighted the recently released Draghi report which is looking into the European competitiveness and the recognition of 5G as the gateway technology to future innovation. Finally, Ms. Kloc underlined that the European Commission aims to implement the 3C – Connected, Collaborative, Computing – Network, a concept defined in the White Paper, integrating connectivity and computing while recognising that the current situation is that technological convergence will remain and will grow. The Commission therefore needs to adjust the framework in this context to make sure that the regulation is equally addressing all important players in the market including semiconductors, computing in edge and cloud environments, new technologies in infrastructure and data management to foster a vibrant community of European innovators.
Highlights and Recommendations
The Summit featured three roundtables to share insights and best practices across stakeholders.
The Industrial Use Cases panel showcased 5G industrial implementations across public authorities, industry, and academic institutions, with a focus on the industrial and manufacturing sectors. Speakers highlighted existing barriers to a large market adoption, depending on the client’s investment level, the provider’s service level, and the numerous “co-opetition” patterns between solution providers across the technology sector, where cooperation and competition coexist.
The smart cities/territories panel articulated roadmaps to advance use cases for services of general economic interest in cities and regions for the benefit of several user categories (municipalities, businesses, end users, etc.) across different service/application layers while sharing the same infrastructure. Current deployments of neutral hosting networks in smart cities, as well as future deployments along transport corridors and rural areas were highlighted as opportunities for the growth of multi-user wholesale networks.
The investment in the 3C ecosystem panel highlighted the IT and Telecom industry’s convergence and the transition towards business models centred on service-oriented strategies. Participants articulated several possible private funding strategies (through Infrastructure funds, National Promotional Banks and Institutes (NPBIs) or even Venture Capital funds) to promote European 5G infrastructure and innovative services but acknowledged access to finance is not the major blocking aspect to scale-up of 5G. The whole ecosystem needs to mature especially in terms of replicability of applications and commodify of equipment. Finally, the panel underlined the need to create a favourable regulatory and business environment that could trigger, accelerate and increase investments in 5G.
Conclusions
The 2024 Report on the State of the Digital Decade estimates a need for approximately €200 billion by 2030 to achieve full connectivity across the EU. The 5G Investment Summit underscored the critical investment needs in the European 5G ecosystem, highlighting both the opportunities and challenges for private investors. The event provided clear guidance to achieve the digital decade’s vision, emphasising that while grant funding under CEF has proven the potential of 5G, innovative financial instruments are essential for scaling these networks. These instruments must satisfy the needs for both large and small projects, ensuring a balanced mix of public and private investments, to achieve a comprehensive 5G coverage for all citizens and businesses.
As 5G deployment advances, the European Commission encourages collaboration among stakeholders from different geographical regions and sectors to foster a vibrant ecosystem and stimulate financial opportunities for investment.
Quotes
Manuel Cano Tarazona, Senior engineer in the digital infrastructure division of the European Investment Bank said:
“Supporting the European 5G ecosystem is a top priority for the EIB. The bank is involved in every part of the value chain, from developing 5G technology and deploying networks to creating innovative applications, with financial products tailored to each segment.”
Marjut Falkstedt, Chief Executive, European Investment Fund said:
“The growth of the 5G infrastructure market still requires major efforts and capital investments. Public and private players will have to collaborate, but the European Commission and the EIF can play a pivotal role to facilitate the uptake of these technologies and boost the EU digital transition. We stand ready to do our part.”
Maarit Palovirta, Senior Director of Regulatory Affairs, Connect Europe said:
“As we stand on the brink of a new digital era, the importance of investment in 5G networks cannot be overstated. The Draghi report aptly highlights that without urgent and substantial investment, Europe’s global competitiveness will falter. To secure a thriving, innovative, and connected future, we must prioritise the development and expansion of 5G infrastructure across the continent.”
Lotte Abildgaard, Director Public Policy Europe, GSMA Europe said:
“From spectrum policy to pragmatic, pro-investment regulation, European policy makers can ensure 5G momentum across the continent is maintained as access to high speed, low latency networks become essential and expected in the next few years. We need to act now to ensure our connectivity matches those requirements so 5G in Europe can fulfil its true potential and facilitate economic growth and innovation.”
Luc Hindryckx, Director General, European Competitive Telecommunications Association said:
“5G will become the backbone of industry 4.0. Industry needs public and private networks to create flexible and scalable solutions, to leverage the coverage and capacity of public networks and the enhanced security and control of private networks. This requires a competitive European telecom industry characterised by the presence of diverse operators, both small and large. This is the key to unleashing the full innovation potential of the European Union, ensuring that the market remains vibrant and equipped with smart solutions, and hence enabling Europe’s global competitiveness.”
Contact information
- 5G for Smart Communities Support Platform at community@5GSC.eu
Author
- 5G for Smart Communities Support Platform
Source – EU Commission Digital Strategy