WHAT THE CHIEFS SAY

Why investment matters: The new Commission as an opportunity for ICT innovation, growth and jobs

Autumn 2009

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Hannes Ametsreiter, Chief Executive Officer, Telekom Austria

On the 7th of June Europe’s citizens did not only elect a new European Parliament but also expressed their clear preference for a responsible industrial policy which allows companies to innovate. In response to the economic downturn, many look to information society technologies to deliver new growth and jobs, as it is widely recognised that diffusion of telecommunications products and services generally has a significant spill-over and positive social impact.

Let me therefore take the opportunity to present my views on the policies and priorities that the EU’s newly appointed Members of the European Parliament and Commissioners should be tackling.

Clearly, the current economic and financial crisis contributed to raising awareness among policy makers in Europe and the world about the need to accelerate the deployment of high speed broadband networks. While the roll out of these “next generation networks” entails an overall investment estimated at 􀁠300 billion, several independent studies have noted that these networks would lead to the creation of about two million new jobs and could add up to 􀁠900 billion to GDP. Next generation networks thus have been clearly identified by EU Commission President José Barroso as one of the key drivers of EU economic recovery in the EU Recovery Plan of last November.

For the next five years within our sector one of Europe’s key challenges is to accelerate the deployment of next generation access networks. Taking into account that compared to Asia or the United States, Europe was lagging behind in the deployment of high speed broadband networks even before the economic downturn the deployment of next generation networks becomes even more challenging.

I believe that reinforcing investment incentives while maintaining vibrant competition are complementary objectives for the full benefit of consumers. And we did and will continue to support responsible, meaningful proposals going in that direction. The EU needs major investments in leading-edge infrastructure.

To reach this goal, investors must be able to choose the most appropriate high-speed broadband technology that suits market needs. In my view the next European Commission’s industrial policy should not attempt to choose a technology winner by promoting a particular network architecture, technology or form of commercial cooperation (as recently proposed in a Commission draft recommendation that was issued a few months ago and which should be adopted at the end of the year).

My view for a future industrial telecom policy includes a set of governmental and regulatory frameworks that are conducive to investment in an area of ubiquitous operation that clearly enables companies to recoup their heavy investments. With the upcoming appointment of a new EU Commission, decision-makers need to place the commitment of promoting strong, innovative infrastructure and a fair legal framework at the centre of their vision.

High-speed networks are at the core of innovation, spawning new businesses, markets and jobs. This is why investment matters.

What the Chiefs Say is a new public affairs platform designed for senior executives from leading organizations to voice their policies and priorities. In this first issue, business leaders present their expectations and concerns on the direction of European policymaking to the incoming European Commission and the new European Parliament. 


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