Europe’s security does not depend solely on our physical borders and their defense. It rests on something far less visible, and far more sensitive: the digital networks that keep our societies, economies and democracies functioning every second of the day. > Without resilient networks, the daily workings of Europe would grind to a > halt, and so too would any attempt to build meaningful defense readiness. A recent study by Copenhagen Economics confirms that telecom operators have become the first line of defense in Europe’s security architecture. Their networks power essential services ranging from emergency communications and cross-border healthcare to energy systems, financial markets, transport and, increasingly, Europe’s defense capabilities. Without resilient networks, the daily workings of Europe would grind to a halt, and so too would any attempt to build meaningful defense readiness. This reality forces us to confront an uncomfortable truth: Europe cannot build credible defense capabilities on top of an economically strained, structurally fragmented telecom sector. Yet this is precisely the risk today. A threat landscape outpacing Europe’s defenses The challenges facing Europe are evolving faster than our political and regulatory systems can respond. In 2023 alone, ENISA recorded 188 major incidents, causing 1.7 billion lost user-hours, the equivalent of taking entire cities offline. While operators have strengthened their systems and outage times fell by more than half in 2024 compared with the previous year, despite a growing number of incidents, the direction of travel remains clear: cyberattacks are more sophisticated, supply chains more vulnerable and climate-related physical disruptions more frequent. Hybrid threats increasingly target civilian digital infrastructure as a way to weaken states. Telecom networks, once considered as technical utilities, have become a strategic asset essential to Europe’s stability. > Europe cannot deploy cross-border defense capabilities without resilient, > pan-European digital infrastructure. Nor can it guarantee NATO > interoperability with 27 national markets, divergent rules and dozens of > sub-scale operators unable to invest at continental scale. Our allies recognize this. NATO recently encouraged members to spend up to 1.5 percent of their GDP on protecting critical infrastructure. Secretary General Mark Rutte also urged investment in cyber defense, AI, and cloud technologies, highlighting the military benefits of cloud scalability and edge computing – all of which rely on high-quality, resilient networks. This is a clear political signal that telecom security is not merely an operational matter but a geopolitical priority. The link between telecoms and defense is deeper than many realize. As also explained in the recent Arel report, Much More than a Network, modern defense capabilities rely largely on civilian telecom networks. Strong fiber backbones, advanced 5G and future 6G systems, resilient cloud and edge computing, satellite connectivity, and data centers form the nervous system of military logistics, intelligence and surveillance. Europe cannot deploy cross-border defense capabilities without resilient, pan-European digital infrastructure. Nor can it guarantee NATO interoperability with 27 national markets, divergent rules and dozens of sub-scale operators unable to invest at continental scale. Fragmentation has become one of Europe’s greatest strategic vulnerabilities. The reform Europe needs: An investment boost for digital networks At the same time, Europe expects networks to become more resilient, more redundant, less dependent on foreign technology and more capable of supporting defense-grade applications. Security and resilience are not side tasks for telecom operators, they are baked into everything they do. From procurement and infrastructure design to daily operations, operators treat these efforts as core principles shaping how networks are built, run and protected. Therefore, as the Copenhagen Economics study shows, the level of protection Europe now requires will demand substantial additional capital. > It is unrealistic to expect world-class, defense-ready infrastructure to > emerge from a model that has become structurally unsustainable. This is the right ambition, but the economic model underpinning the sector does not match these expectations. Due to fragmentation and over-regulation, Europe’s telecom market invests less per capita than global peers, generates roughly half the return on capital of operators in the United States and faces rising costs linked to expanding security obligations. It is unrealistic to expect world-class, defense-ready infrastructure to emerge from a model that has become structurally unsustainable. A shift in policy priorities is therefore essential. Europe must place investment in security and resilience at the center of its political agenda. Policy must allow this reality to be reflected in merger assessments, reduce overlapping security rules and provide public support where the public interest exceeds commercial considerations. This is not state aid; it is strategic social responsibility. Completing the single market for telecommunications is central to this agenda. A fragmented market cannot produce the secure, interoperable, large-scale solutions required for modern defense. The Digital Networks Act must simplify and harmonize rules across the EU, supported by a streamlined governance that distinguishes between domestic matters and cross-border strategic issues. Spectrum policy must also move beyond national silos, allowing Europe to avoid conflicts with NATO over key bands and enabling coherent next-generation deployments. Telecom policy nowadays is also defense policy. When we measure investment gaps in digital network deployment, we still tend to measure simple access to 5G and fiber. However, we should start considering that — if security, resilience and defense-readiness are to be taken into account — the investment gap is much higher that the €200 billion already estimated by the European Commission. Europe’s strategic choice The momentum for stronger European defense is real — but momentum fades if it is not seized. If Europe fails to modernize and secure its telecom infrastructure now, it risks entering the next decade with a weakened industrial base, chronic underinvestment, dependence on non-EU technologies and networks unable to support advanced defense applications. In that scenario, Europe’s democratic resilience would erode in parallel with its economic competitiveness, leaving the continent more exposed to geopolitical pressure and technological dependency. > If Europe fails to modernize and secure its telecom infrastructure now, it > risks entering the next decade with a weakened industrial base, chronic > underinvestment, dependence on non-EU technologies and networks unable to > support advanced defense applications. Europe still has time to change course and put telecoms at the center of its agenda — not as a technical afterthought, but as a core pillar of its defense strategy. The time for incremental steps has passed. Europe must choose to build the network foundations of its security now or accept that its strategic ambitions will remain permanently out of reach. -------------------------------------------------------------------------------- Disclaimer POLITICAL ADVERTISEMENT * The sponsor is Connect Europe AISBL * The ultimate controlling entity is Connect Europe AISBL * The political advertisement is linked to advocacy on EU digital, telecom and industrial policy, including initiatives such as the Digital Networks Act, Digital Omnibus, and connectivity, cybersecurity, and defence frameworks aimed at strengthening Europe’s digital competitiveness. More information here.

EU Trade Commissioner Maroš Šefčovič will hold a call with U.S. Trade Representative Jamieson Greer on Friday as the two sides seek a basis for negotiation to head off a transatlantic trade war, a European Commission spokesperson told POLITICO. The call takes place just days after Brussels responded to the U.S. administration with a newly tweaked list of concessions it is willing to offer, as first reported by POLITICO. The call will take place in the late afternoon, said Commission trade spokesperson Olof Gill. “We’ve sent them what we think is an excellent, detailed, mutually beneficial proposal,” Gill added, standing by the EU’s approach in its talks with Washington. The new document aims at boosting purchases in strategic sectors, such as energy, as well as developing cooperation on 5G and 6G mobile networks. It would also ramp up strategic cooperation in sensitive sectors that have undergone trade investigations resulting in U.S. tariffs, such as steel and aluminum, semiconductors and cars. The recent exchange of letters sparked hope that talks between Brussels and Washington could finally make substantive progress, after weeks of mounting frustration over a lack of engagement from the Donald Trump administration. The Financial Times reported on Friday, however, that Greer was expected to reject the EU’s proposals, demanding unilateral concessions instead of mutually reducing tariffs. On top of a 10 percent tariff, Washington still imposes a 25 percent levy on cars as well as steel and aluminum. If no solution is reached by early July, a higher U.S. tariff of 20 percent would kick back in on most European goods.  The Commission insists it won’t accept a 10 percent baseline tariff. That was baked into a recent trade agreement struck between Washington and London. Greer and Šefčovič are expected to meet in Paris in early June, after the EU trade chief paid at least three publicly disclosed visits to Washington since Trump took office in January.

The European connectivity sector is at a turning point. The recently published State of Digital Communications 2025 report by Connect Europe highlights that the continent’s connectivity ecosystem — embracing network and service operators, hardware and software vendors, cloud, virtualization providers, and many others — is transforming at an unprecedented pace, driven by new technologies like artificial intelligence-powered networks, 5G standalone and open RAN. This ecosystem, worth €1 trillion and representing 4.7 percent of European GDP, can become the cornerstone of Europe’s economic fabric. Yet, for all this potential, Europe’s ability to seize the opportunity is far from guaranteed. Telecom investment in Europe declined by 2 percent in 2023 — the first drop in seven years — just as other global players are ramping up their resources into cutting-edge digital infrastructure. Europe’s ambition for digital sovereignty is at stake, since weaker investment in telecom networks and services ultimately chills the entire connectivity ecosystem. If we fail to reverse course now, we risk falling irreversibly behind in the race for technological leadership. There is no time to waste. > If we fail to reverse course now, we risk falling irreversibly behind in the > race for technological leadership. There is no time to waste. A shifting digital landscape: seizing the moment for Europe’s tech sovereignty Connectivity is no longer just about providing fast internet access — it is the backbone of Europe’s digital economy, driving advancements in industrial automation, smart cities and next-generation AI applications. The rapid digital transformation of connectivity networks presents both a challenge and an opportunity. AI is already being deployed to optimize networks, with 52 percent of European operators trialing AI-driven automation. This technology will be critical in ensuring more efficient, resilient and sustainable networks. At the same time, research and development in 6G is already underway, and Europe must position itself at the forefront. The report tracks over 200 global 6G projects, with European operators leading more than half of them. This leadership in early stage R&D must be leveraged into commercial advantage, ensuring that Europe is not merely a follower but a global standard-setter. In this race to bring telecom networks to the next generation, Europe’s connectivity ecosystem must play to its strengths to make sure they also offer value-added services that leverage AI and other enabling technologies. For instance, the growing role of application programming interfaces (API) in network services presents an opportunity for Europe to shape the future of Network-as-a-Service business models worldwide. European operators currently lead in API platform announcements, ahead of North America and Asia-Pacific. This is a rare instance where Europe is setting the pace, an advantage we must capitalize on. Yet, Europe is lagging in key areas. By the end of 2024 only 40 percent of Europeans had access to 5G standalone networks, compared with over 90 percent in North America. Edge cloud deployment remains sluggish, with just 320 live operator edge nodes, in Europe, far from the EU’s ambitious 10,000-node target by 2030. These gaps highlight an urgent need to accelerate investment in digital infrastructure and foster a regulatory environment that enables innovation. If Europe is serious about its digital sovereignty, it must take decisive action now. Closing the connectivity gap and breaking market barriers For Europe to achieve its ambitious Digital Decade targets — full gigabit and 5G coverage by 2030 — massive investment is needed. Today, 82.5 percent of the continent is covered by gigabit-capable networks, far behind China (99 percent), the United States (90.3 percent) and Japan (93.9 percent). The 5G picture is similar, with Europe’s 87 percent coverage behind South Korea (99 percent) and the United States (98 percent). If this trend continues, 39.5 million EU citizens will still lack gigabit-speed connectivity by 2030, a failure that would undermine Europe’s digital ambitions. > The solution must include agile industrial policy, regulatory reform fostering > a more investment-friendly environment, and allowing European operators to > consolidate Beyond investment, Europe’s telecom market remains excessively fragmented and overregulated. The continent has 41 major mobile operators, compared with just five in the United States and four in Japan and China. This fragmentation prevents economies of scale, limiting the ability of European firms to compete effectively on a global stage. The result? A sector constrained by financial pressure, limited innovation capacity and an inability to scale next-generation technologies at the speed required to remain globally competitive. The solution must include agile industrial policy, regulatory reform fostering a more investment-friendly environment, and allowing European operators to consolidate so they can interact on an equal footing with global tech companies. The way forward: innovation as the cornerstone of tech sovereignty Europe is at a now-or-never moment. The choices we make today will determine whether we remain a sovereign digital powerhouse or fall behind global competitors. This sense of urgency is reflected in a recent movement for creating a European technology stack, which mobilized both academia and technology experts, both calling for vigorous industrial policy action. Our State of Digital Communications 2025 report also makes it clear: Europe has the expertise, technology and ambition to lead, but excessive fragmentation and over-regulation threaten progress. Reports by Enrico Letta and Mario Draghi echo this concern, emphasizing the strategic importance of connectivity. But without bold policy choices, increased investment and a commitment to scale innovation, Europe’s digital future will be at risk.

Do you think the European governments and industry leaders like Ericsson who began collaborating on the Global System for Mobile Communications (GSM) standard four decades ago could have envisioned the conversations we’d be having about advanced mobile connectivity today?   Not likely, but times have changed. The creation of a single cellular standard, which would have once felt like science fiction, has grown from something we dreamed of to the foundation of a mobile-first world. It has become a driving force behind major cross-industry trends such as electrification, decarbonization, resilient supply chains and industrial automation. What we’re really talking about here is advanced connectivity that will enable European competitiveness.  As the cornerstone of digital innovation across Europe, it is a driver of Europe’s tech leadership, enabling progress in artificial intelligence (AI), quantum and clean tech. So, if advanced connectivity is vital, why are we treating it like an afterthought? The European telecom market has suffered from an investment gap since the 4G era, with other regions securing digital leadership and seeing a stronger emergence of digital businesses. So, what needs to change? We need to prioritize advanced connectivity and create the conditions for it to thrive. > Shared connectivity standards are crucial for driving innovation – but they > also possess power beyond that, shaping the technology ecosystems that set the > foundation for Europe’s economic growth and global influence. 6G technology will be vital for driving the next innovation cycle that Europe needs to stay competitive with the US and China. Ericsson is already heavily investing in 6G research and leading the development of this next-generation technology, positioning itself as a key partner in securing Europe’s competitive edge on the global stage. As Mario Draghi’s report on the future of European competitiveness makes clear, Europe’s telecoms sector needs significant investments if it is to remain strong. This means the right incentives to make those investments attractive, which in turn necessitates the right legal and regulatory framework to maximize the force and effect of European innovation. What we need, therefore, is a ‘new deal for mobile’, with the same political focus and commitment to delivery that drove the GSM success over 40 years ago. At the heart of this should be reinforcing standardization and an intellectual property rights (IPR) framework that incentivizes innovation by rewarding inventors and protecting their rights. via Ericsson Reinforcing global standardization for European innovation Shared connectivity standards are crucial for driving innovation – but they also possess power beyond that, shaping the technology ecosystems that set the foundation for Europe’s economic growth and global influence. Mobile networks are one such engine for growth. Every generational advance in connectivity starts a new wave of innovations because these are built on standardized technologies, and we want to see that continue. With 3G, phones became smart; 4G led to the app revolution; and 5G is enabling everything from AI and self-driving cars to telemedicine. The standardization underpinning these advances in connectivity is achieved through the 3rd Generation Partnership Project (3GPP). > We need Europe to continue to lead by actively supporting the critical role > that standardization plays in enhancing access to technology and innovation > and promoting the participation of European companies in the process. As a global European champion in the telecoms sector and a key contributor to 3GPP, Ericsson is actively leading the development of global standards for all major communication systems, creating the largest innovation platform for consumers, industries and society. Advances in global connectivity coupled with global ubiquity have connected billions of people and contributed a significant proportion of global GDP. We want to see this growth continue, but to do so we need Europe to continue to lead by actively supporting the critical role that standardization plays in enhancing access to technology and innovation and promoting the participation of European companies in the process. For European companies to continue to invest in innovation and contribute to the development of global industry-led standards, there must be fair compensation that can sustain the innovation cycle and corresponding investment needs. Draghi rightly emphasizes the critical role of patents in delivering these incentives and ensuring a return on investment for innovation. Getting the IPR framework right now to unleash long-term innovation EU policies adopted in the next five years will be foundational for Europe’s innovative ecosystem to thrive in the long term, improving conditions for the next wave of intellectual property lifecycles that can take over a decade to bear fruit. A smart and strategic policy approach to standardization, security, future spectrum, research and AI will all play a role, as will improved investment conditions for advanced connectivity, but it ultimately comes down to how policy on IPR and innovation plays out in the new mandate. > If we want innovative companies to be able to effectively invest, protect and > commercialize their research and development output, we need to ensure a > robust, efficient and predictable IPR framework. If we want innovative companies to be able to effectively invest, protect and commercialize their research and development output, we need to ensure a robust, efficient and predictable IPR framework. Draghi’s report sees this clearly, calling for the simplification of IPR procedures, particularly through the support and further adoption of the unitary patent system. To accelerate innovation and future-proof Europe’s competitive advantage, we need to avoid creating bureaucratic hurdles. But the proposed Standard Essential Patents Regulation threatens to do exactly the opposite, stifling Europe’s ambition to lead in global standardization and jeopardizing its status as a net exporter of innovations in advanced connectivity. To support innovation, EU institutions must urgently reassess this regulation and reformulate its approach. This starts with improving on what we already have rather than upending existing systems. We must take the opportunity to recognize the importance of European IPR and policies that strengthen the global standardization system. Serving the world well, that system also assures leadership, prosperity and security for Europe. Only then can we ensure that innovation in telecoms continues to support European competitiveness.