The EU needs to invest € 300 billion in a new 5G grid

The European Union (EU) needs to invest € 300 billion in its telecommunications infrastructure if it is to have a new generation 5G network built by 2025 throughout the 27-member bloc to support its economic growth and harness the potential of this technology. This was shown on Thursday by a study prepared by the consulting company BCG, commissioned by the telecommunications lobby group ETNO. At the same time, building 5G can help the EU recover from the recession triggered by the Covid-19 pandemic. However, EU telecoms operators are reluctant to invest in 5G networks, which can support smart factories and autonomous cars. The reason is the huge expenditure involved. Any mergers that would help them share these costs are hampered by strict EU antitrust rules. According to the study, € 150 billion is needed to cover the EU as a whole with the 5G network and another € 150 billion to complete the modernization of the fixed infrastructure to gigabit speeds. Disappointing the industry is also the postponement of 5G spectrum auctions, as governments are currently focusing on fighting the pandemic. The study suggested several measures that governments and regulators could take to support the telecommunications industry. "One such step is the promotion of new ownership models, which would include voluntary infrastructure sharing, which would allow for faster construction, reduced overall environmental impact and greater knowledge transfer between partners," the report said. Relaxing rules that would allow telecommunication service providers to cooperate and co-invest, or separating the construction of infrastructure from telecommunications business, is also an option. The study also calls on the EU to allow operators to monetize data traffic on their networks and catch up with rivals such as Google, Facebook, Microsoft and other technology giants.