The event saw regulation and policy dominate keynote sessions and panels, with AI the biggest buzz on the showfloor
The need for regulators to chart a new course
This year’s conference saw calls for an immediate regulatory reset to encourage both investment and responsible network usage, with the heads of Europe’s four largest operators (Deutsche Telekom, Orange, Telefónica and Vodafone) collectively pitching a ‘new deal’ to revitalise the region and a beleaguered sector. While ‘fair share’ was broadly absent from executives’ speeches (in stark contrast to last year), operators were vocal in urging policymakers to reform the regulatory landscape and ensure fair governance across the internet value chain, noting many rules in force today were designed for the era of copper networks. Though attendance at the four operators’ joint keynote was noticeably low, they were given a show of support by Thierry Breton (Commissioner for Internal Market, EC) when he outlined his plan for a forthcoming Digital Networks Act. Promises to create a digital single market and implement a future-oriented regulatory framework will be welcomed by industry, although execution will take time.
Collaboration as important as in-market consolidation
Also central to the industry's call to action was a push for in-market consolidation. Amid the usual comparisons to market structures in the US and China, Tim Hoettges (CEO, Deutsche Telekom AG) stressed that the combination of low ARPU, poor RoI and an inability to merge made for an impossible situation for Europe’s telecoms sector. With 60% of the region’s operators failing to earn their cost of capital (citing Barclays), Hoettges was animated on stage as usual, making a wholehearted plea for the political leadership in Brussels to take note and to offer help. José María Álvarez-Pallete (CEO, Telefónica) echoed calls for radical change, highlighting Europe’s €200bn ‘investment gap’. Margherita Della Valle (CEO, Vodafone) lamented inefficiencies in the development of parallel networks, while assuring that consolidation in infrastructure does not necessarily result in consolidation at the retail level. From the keynotes to the Ministerial Programme, operators warned of risks to investment in network rollouts should they not have the ability to achieve economies of scale. However, in addition to mergers, the message from industry was one of the need for greater cooperation with other sectors, for example to create value, drive innovation or deliver on public policy goals such as improved network resilience and security. Discussion around 6G reflected these sentiments, with speakers underlining that the next era of mobile will not be created by any one nation or region. A relevant example of the collaboration envisaged was provided by the EU’s 6G Smart Networks and Services Joint Undertaking (SNS JU), which has made international partnerships – e.g. with the US, Japan and South Korea – a strategic priority.
A commitment to openness in digital markets
This spirit of collaboration was evident at events hosted by the newly-minted Coalition for Open Digital Ecosystems (CODE). Representatives from founding members – a list that includes Google, Meta and Qualcomm – acknowledged that the coalition brings together a diverse set of companies and that it’s in its early days, which means it remains to be seen exactly where points of commonality are found, which direction the organisation goes in and what kind of impact it has. Nevertheless, the firms involved sounded clear and unified in their support for the principle of openness and for collaboration among academics, consumers, policymakers and the private sector in regulating the digital economy. Renate Nikolay (DG CNECT) joined CODE for a fireside chat, outlining her concerns that many consumers are facing lock-in and a lack of choice. Nikokay noted that some CODE members are designated gatekeepers under the Digital Markets Act (DMA), but felt that having gatekeeper status and being committed to openness shouldn’t be at odds with each other. As the plans to test the commitments from gatekeepers, CODE was envisioned as a potentially useful part of that process (i.e as an evidence gathering forum).
AI still requires investment and guidance
AI was undoubtedly one of the hottest topics at MWC24, with applications of the technology seen in company’s displays across the event, as well as heard during several on-stage conversations. Panellists more than once raised the importance of ensuring AI develops and works to serve the public good. Both Demis Hassabis (Co-Founder & CEO, Google DeepMind) and Brad Smith (President, Microsoft Corporation) recognised the role of big tech here. Hassabis noted that Google was one of the first firms to publish a code of ethics for its AI systems, which was soon followed by Smith’s launch Microsoft’s new guiding philosophies in advancing global access to AI. Smith also reaffirmed the company’s commitment to complying with the EU’s forthcoming AI Act. However, with AI regulation not yet in force in most countries, Mike Fries (CEO, Liberty Global) stated that Liberty Global’s focus is on the effective and thoughtful adoption of AI, with a greater degree of ethical input. Vicki Brady (CEO, Telstra Group Limited) reminded the conference that the huge potential of AI, including the economic benefits, will not materialise without operator investment in connectivity infrastructure – something industry may need to do a better job of communicating to governments and regulators.
