Portugal Vying To Become the EU’s Digital Hub Despite 5G Woes

SHARE THIS ARTICLE

On March 19, the European Commission and the European Union hosted Digital Day 2021, a virtual event addressing digital transition challenges. The EconoTimes reported that the 27 Member States signed numerous declarations to boost “Europe’s digital green agenda.” As of the end of 2020, only 17 EU countries had 5G available commercially in at least one city per member state.

Another milestone accomplished during the event was the establishment of the European entrepreneurship structure. This “start-up alliance,” established by the Portuguese government and based in Lisbon, will help Europe compete with tech hubs like the U.S., Israel, and Singapore.

According to the EconoTimes, Portugal’s goal is to turn Lisbon into “one of the world’s premier tech hubs.” It has already begun increasing investment in the city. 

The country has deployed ultrafast broadband and promoted a “nomad village” for teleworking in Ponta do Sol, Madeira, to attract talent. Portugal is also providing “golden visas” or start-up visas for technology companies. Homegrown start-ups are also attracting investors from around the globe; in 2020, international investors accounted for almost a third of seed and pre-seed rounds, reported the EconoTimes.

With all its tech advancements, Portugal is still behind the eight ball when it comes to 5G. In fact, all of the EU pales in comparison to other world leaders, with just 25 percent of Europeans connected to 5G as of September 2020. Comparatively, the U.S. mobile connectivity rate was at 76 percent, and South Korea came in at 93 percent during the same time period, according to the EconoTimes.

One challenge for Portugal is the 5G spectrum auction rules established by the national communications regulator Anacom. The terms outlined by Anacom have been accused of distortion of competition, including disproportionately favoring new entrants to the market. Critics also say the auction rules require low investment commitments from new players, only commit coverage to a narrow geographical area (and population), and allow new entrants to provide service at slower speeds than established operators.

European policymakers have set aside 20 percent of the EU’s nearly $8.8 billion in coronavirus recovery fund to accelerate the rollout of 5G. However, although Portugal does qualify for a chunk of the money, the government did not earmark mobile network coverage in its draft plan. 

Reader Interactions

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.