For the expansion of 5G

EU considers relaxing telecoms merger rules

The European Union (EU) is considering relaxing the merger rules for the telecoms industry in order to speed up the expansion of the mobile network in line with the modern 5G standard. In addition, large technology groups could be allowed to share in the costs of fiber optic cables or radio masts, according to a draft from the EU Commission, which Reuters was able to view.

"The fragmentation of the EU market for electronic communications networks and services along national borders could affect the ability of operators to achieve the scale needed to invest in the networks of the future, particularly with regard to cross-border services," the paper said. EU Competition Commissioner Margrethe Vestager is expected to officially present the plans on February 21 and then seek the views of stakeholders.

The European telecoms sector is currently in a state of flux: the Spanish group Telefonica recently took over almost all of its subsidiary Telefonica Deutschland. Due to tough competition, Vodafone has sold its Spanish subsidiary and is in "active talks" about its Italian business. The activities on the British domestic market are to be merged with those of CK Hutchinson.

The so-called network fee levy for companies such as the streaming provider Netflix or the Alphabet subsidiary Google is controversial, even within the EU member states. Telecoms providers justify their demand for the payments by arguing that these companies are responsible for a large proportion of data traffic. The technology companies counter that the value of their content for the digital ecosystem and the corresponding investments have not yet been taken into account.