European telecommunications executives, gathered at Mobile World Congress in Barcelona this week, seem upset with what they call the “excessive” regulation in the region. Telecom industry leaders voice strong concerns about the regulation, pointing fingers at Brussels for stifling consolidation in a sector lagging behind its counterparts in the U.S. and Asia, reports the Times of India.
According to Bloomberg, Deutsche Telekom AG (OTCQX: DTEGY) CEO Tim Höttges remarked, “Europe could really use a DOGE,” alluding to President Trump’s Department of Government Efficiency (DOGE) led by Tesla CEO Elon Musk, known for slashing costs. His comments reflect a growing discontent over a European telecom market bogged down by slim profits and strong competition. That sentiment was shared by fellow telecom industry execs, including Vodafone’s (NASDAQ: VOD) Margherita Della Valle, Orange SA’s (OTC: ORANY) Christel Heydemann and Telefónica SA’s (NYSE: TEF) Marc Mutra.
Della Valle said, “In this global race, Europe’s falling behind. In the 5G era, we’re trailing.” Many executives see mergers as the solution, but regulators across Europe have repeatedly thwarted or altered deals that would shrink the number of operators per market from four to three, prioritizing affordable customer prices, notes the Times of India.
Höttges asserted, “We should just copy what the Americans are doing.” Deutsche Telekom gets most of its revenue and profit from a stake in T-Mobile US Inc. “China has three operators, even India went to three operators and they are prospering,” Hottges said.
The discussion capped a day of frustration aired by leaders from firms like Telefónica, Emirates Telecommunications Group, Telenor ASA and Bharti Airtel Ltd. All have lamented the lack of financial payoff for their costly network investments.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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