Brussels, BELGIUM – A new publication released today reaffirms the positive relationship between digital technology companies and telecom operators. The factsheet, titled "How Tech Is Saving European Telcos," was published by the Computer & Communications Industry Association (CCIA Europe). It emphasizes how cloud computing and artificial intelligence (AI) are driving digital transformation in the telecom sector, allowing European network operators to reduce costs, increase efficiency, and enhance customer experience.
Despite these benefits, discussions surrounding the EU's forthcoming Digital Networks Act (DNA) have been influenced by misleading claims. Large telecom companies continue to present a narrative to EU policymakers suggesting that popular tech and content firms should compensate telcos for allegedly overburdening networks. However, CCIA Europe argues that consumer demand for digital services is what drives payment for premium connectivity.
The European Commission is reportedly considering adopting this perspective, which could harm Europe's digital competitiveness. Some within the EU executive are contemplating using the DNA to regulate the IP interconnection market and extend telecom rules to cloud services based on a perceived convergence of cloud and telecom services. CCIA Europe warns that such actions would be misguided and detrimental.
According to CCIA Europe, cloud and telecom services remain complementary rather than converging. Core telecom network functions remain distinct from cloud computing, which provides scalable IT infrastructure across various industries. Telecom operators utilize it for AI-driven analytics and efficiencies similar to other sectors.
CCIA Europe urges the Commission to abandon its plans regarding IP interconnection regulation and avoid extending the European Electronic Communications Code (EEC) to cloud services. These proposals lack evidence, fail to address clear issues, and could undermine Europe's open internet, digital economy, competitiveness while potentially raising prices.
Maria Teresa Stecher, Policy Manager at CCIA Europe, stated: “Far from the doom-and-gloom story pushed by big telcos, this new factsheet highlights real-world examples of how cloud and AI are helping the telecom sector. The decade-old claim that technology companies are ‘overburdening’ telecom networks ignores this reality.”
Daniel Friedlaender, Senior Vice President and Head of CCIA Europe, added: “Instead of misguided regulatory intervention, the EU should focus on boosting digital competitiveness. If the Commission truly wants 75% of SMEs to adopt cloud and AI by 2030, it must enable these technologies – not weigh them down with unnecessary red tape that will hamper all connectivity.”