Europe risks slipping further behind global competitors in the race to deploy 5G networks, Vodafone CEO Margherita Della Valle has warned, citing regulatory policies that have discouraged investment in digital infrastructure.
Once a global leader in 2G technology, Europe now lags behind not only the United States and China but also several emerging economies that have embraced faster network rollouts. According to Della Valle, regulators’ focus on keeping consumer prices low has deterred telecom operators from making the large-scale investments needed to develop cutting-edge infrastructure.
Vodafone-Three Merger Signals a New Approach
Della Valle highlighted Vodafone’s recent £16.5 billion merger with Three UK as a potential turning point, offering a glimpse into a different future for European telecoms. The merger, which received regulatory approval in January, is expected to boost investment in 5G, demonstrating how consolidation among operators can generate the necessary capital for infrastructure expansion.
“With fewer but larger operators, Europe can stand a better chance of matching the connectivity levels seen in the US and Asia,” Della Valle said, arguing that greater scale is key to unlocking funding for advanced network deployment.
The Risk of Falling Behind
Europe’s lag in 5G expansion is not just a concern for telecom consumers but also for broader economic and geopolitical competitiveness. Without substantial investment in subsea cables, satellite technology, and large-scale infrastructure projects, European operators will remain reliant on external providers—mainly from the US—effectively making the continent a “technology taker” rather than an innovator.
Della Valle insists that Europe has the expertise and resources to reclaim its leadership in telecom innovation, but a more permissive regulatory environment is needed to encourage private sector investment. Without reform, Europe risks falling further behind as other regions accelerate their 5G and next-generation digital infrastructure rollouts.
As governments and regulators across the EU consider the future of digital connectivity, Della Valle’s call for policy shifts highlights the urgency of reassessing Europe’s approach to telecom regulation in an increasingly competitive global landscape.
