Barcelona, 26 February 2024
Ladies and Gentlemen,
It is my pleasure to be here again at the Mobile World Congress. To reconnect with this community of disruptors and innovators who are working to transform the way we work, interact, learn, shop, live.
Walking through the halls of these pavilions, all the newest technologies of the future appear within reach:
- Advanced robotic solutions to automate manufacturing processes.
- IoT sensors, drones and AI solutions for precision agriculture.
- Vehicle-to-infrastructure and vehicle-to-vehicle communications solutions to enable vehicle autonomy, and improve traffic flow in our congested cities.
- Sensors, trackers, and computer vision tools for retailers to manage inventory, improve warehouse operations, and coordinate along the supply chain.
All of these technology use cases have one thing in common: reliance on ultra-low latency and robust, secure digital infrastructures. Infrastructures on which we can run with confidence “mission critical” applications that require the highest levels of reliability and responsiveness. A blend of data transmission, storage and computing all together in a ‘computing continuum’, thanks to edge and swarm computing technologies. A new architecture where telecommunications, cloud computing, and edge computing infrastructures converge; where physical network interconnections become application programming interfaces.
But today’s networks are not up to the task. Latency is over 200 milliseconds, too long to ensure reliable monitoring in telemedicine or to prevent accidents between connected vehicles.
The investments needed to bridge the gap between today’s telecoms networks and tomorrow’s digital infrastructure are massive: no less than 200 billion euros are needed over the next six years, only for completing the rollout of 5G and fibre.
And our regulatory framework, designed two decades ago in the era of the copper networks, is outdated and does not cater for today’s world, where new business models emerge and the provision of Networks-as-a-Service will replace traditional services.
So it is time to change the DNA of our connectivity infrastructure.
Just a few days ago, I presented the European Commission’s White Paper laying the foundations for a future Digital Networks Act. Building on all your contributions – for which I thank you – we are advocating for a new revolutionary approach to digital networks based on three pillars, which I am pleased to have the opportunity to present to you today.
1. First, invest in research and technology deployment with the ambition to increase our technological leadership.
Europe is already a research and technology powerhouse. Now we need to invest in mastering the ongoing technological transformations and ensure that research leads to new markets.
That’s why, in line with the industrial approach we have promoted during this mandate, we propose to support the creation of a European ecosystem of innovators across the computing continuum: the “Connected Collaborative Computing” or “3C Network.”
The overall goal will be to ensure that investment in the roll-out of Networks-as-a-Service is not an end in itself, but an enabler of actual services and applications ‘made in Europe’ in sectors such as health, energy, agriculture, transportation, and so on, which could in the future be deployed in the mass market, and worldwide, to address the pressing challenges of our society.
Concretely this means supporting the roll-out of high-speed and secure end-to end connectivity infrastructure to connect different actors and devices involved in a specific use case, using terrestrial and non-terrestrial networks. And to equip this infrastructure with the necessary computing and AI capabilities to experiment, test, and roll out new edge computing applications and solutions.
One example is advanced e-health services, where we could pilot a project ensuring low latency connectivity between all stakeholders in the value chain: large businesses and startups active in the digital sector, from chips, to software and the cloud, on the one hand, and a network of doctors and other medical professionals, emergency services and pharmaceutical suppliers, on the other hand. This community could work together to develop and test technologies and applications for improved remote diabetes management, blood pressure monitoring or remote medical consultations.
We propose to work on at least three large-scale pilot projects, as the one I have described. Beyond e-health, these initial pilots could focus on mobility and smart communities: the prototype of the cities of tomorrow.
In parallel with pilots, another tool we could use for the 3C Network are Important Projects of Common European Interest. Building on the success of the IPCEI on microelectronics and cloud, we should foster an IPCEI on the infrastructure needed for the computing continuum.
This approach will require a commitment to partnerships across the value chain and securing funding to match our ambitions (combining European programmes, national funding, and private financing).
2. Second, create a true Digital Single Market with a future-oriented regulatory framework that creates a level playing field
Operators need scale and agility to adapt to this technological revolution and amortise the massive investments required.
Currently, our regulatory framework is too fragmented. There are still too many regulatory obstacles to the creation of a true single telecommunications market: spectrum acquisition, consolidation, reporting, security, etc.
We are not making the most of our Single Market of 450 million potential customers. We need a true digital single market to facilitate the emergence of pan-European operators with the same scale and business opportunities as their counterparts in other regions of the world.
And we need a true level playing field: because in a technology space where telecoms and cloud infrastructure are converging, there is no justification for them not to play by the same rules.
How do we plan to address this?
We are setting a clear timeline to phase out copper networks by 2030, when fibre should reach all European households in line with our Digital Decade: to ensure a timely and genuinely inclusive digital transformation.
We also need to adapt our regulation to the new fibre optic environment. Building on the Gigabit Infrastructure Act and the Gigabit Recommendation, we want to reduce the administrative burden of excessive regulation and provide incentives for faster roll-out of new technologies: shifting away from strict ex ante control of the markets towards a more flexible tool – a safety net which will allow to act in specific cases if market openness is at risk.
A level playing field entails similar rights and obligations for all actors and end-users of digital networks. This means, first and foremost, establishing the “country of origin” principle for telecoms infrastructure services, as is already the case for the cloud, to reduce compliance costs and investment requirements for pan-European operators. Thanks to this principle, core network operators will be able to offer their services seamlessly across the whole Single Market, take advantage of economies of scale, reach critical size, and ultimately attract more investment and deploy new technologies faster. And thanks to this principle we will finally create a true Digital Single Market and a compelling business case for operators to engage in cross-border consolidation.
It also means demystifying the question of the optimal number of operators because NO, there is no magic number in this field. Given the convergence of different technologies and services towards the computing continuum, we cannot have a narrow look at markets and their players.
Finally, we should give spectrum policy a true European dimension and push for more timely and “affordable” auctions. Because, in the technology race towards 6G, we cannot afford further delays in the spectrum licensing process, with huge disparities in timeline of auctions and infrastructure deployment between Member States: we cannot afford the same outcome as for 5G auctions, where, after 8 years, the process is not completed yet.
It is time to Europeanise the allocation of spectrum usage licenses, at least for satellites. This is not about collecting at EU level money from spectrum auctions, which in any event should not be used as cash cows to replenish public finances. It is about ensuring that all Europeans can benefit of the most advanced technologies in a timely manner. That is why as an alternative mechanism we propose that spectrum auctions, maintained at national level, are designed not to reward the highest bidder, but the operator which commits to invest more and faster in network roll-out.
European citizens and businesses must always remain at the centre of our ambitions. But we must balance the focus on the end-customer with the needs of a competitive and modern economy.
3. Third, protect our digital network infrastructure to make it resilient and secure.
In the current geopolitical context, we need to strengthen the EU’s economic security in communications technologies and tackle the physical security and cybersecurity of our infrastructure, as well as the data transmitted through it.
With new and powerful quantum computers on the horizon, we also see new threats to the security of our digital communication networks and critical infrastructures. While these quantum computers are not capable of breaking our current encryption methods yet, we can expect that they will be soon.
To safeguard critical applications from the risks of potential attacks, we need to develop strategies to transition to quantum-safe digital infrastructure. The first step in this direction is developing European post-quantum encryption standards and then deploy them across the whole of Europe. We will soon present a recommendation to that effect.
At the same time, submarine cables are also critical infrastructures, responsible for carrying over 99% of intercontinental data traffic, and crucial intra-European data flows. Any incident disrupting their functioning, being the result of a natural disaster or an act of sabotage and espionage, can affect vital security interests and undermine the resilience of our economy.
Given the urgency of securing submarine cables, last week we issued a recommendation to Member States to ensure a coordinated mapping of our cable resources and to establish a Cable Security Toolbox setting out specific mitigating measures to reduce risks, vulnerabilities and dependencies, in particular on high-risk suppliers – an instrument inspired by our 5G Toolbox.
These mitigating measures include developing a list of European Cable Projects of Interest, to fill strategic gaps and establish new connections that would increase resilience and minimise risk. These projects should be carried out swiftly, benefitting from prioritised public funding, not only for CAPEX but also for OPEX. But also fast-track permitting procedures.
Conclusion
Ladies and Gentlemen,
We are currently engaged in a global technology race. In this sprint for resilience and competitiveness, Europe cannot and will not be left behind.
Since the beginning of the Commission’s mandate, we have been encouraging innovation and technological leadership in AI, data, cloud, quantum computing and the metaverse. Time has now come to investing in cutting-edge digital networks.
With vision, determination and cooperation, I believe that a Digital Networks Act is within reach. To everyone’s benefit.
Telecoms operators will have the scale and framework needed to invest at pan-European level.
Digital service providers that want to be part of the solution will have new opportunities to bring cutting-edge services to their customers.
Member States that are able to see the bigger picture beyond preserving traditional prerogatives such as spectrum allocation will benefit from growth, innovation, security and job creation.
And connected industries that embrace the change and support investments with their demand will benefit from new markets, greater productivity and more efficient business operations.
I am confident that I can count on you all.
Thank you.
Source – EU Commission