European fiber rollouts are being hampered by tough regulation at regional and national levels, Deutsche Telekom chief René Obermann claims.
The telco boss is calling for less regulation of fixed and mobile markets in Europe, noting that the incentives to deploy fiber are being eroded by basic regulatory issues, and that wireless markets have always been competitive environments.
“Everyone is calling for high-speed networks in the furthest-flung corners of the country – ideally fiber-optic networks. And rightly so, as it happens – we need these networks for the future of the country. At the same time, however, politicians at the European level and the national regulatory authorities are taking away the incentives for investment,” Obermann states.
Deutsche Telekom’s chief points to recent comments from European capital market analysts that claims over zealous regulation is the main barrier to further investment in high-speed networks. “We therefore need less regulation, not more,” Obermann notes.
Companies that do maintain their investment strategy through the current regulatory minefield are reaping benefits, though. Obermann states Deutsche Telekom’s investment of around €3.7 billion in Germany’s high-speed broadband infrastructure through 2011 paid off in the form of “three leading network tests.”
Obermann issued his rallying call just after detailing a new four-pronged digital strategy for Deutsche Telekom, based on cloud computing and network integration.