Step aside, Mario! Capitals are not buying into Draghi’s telecom remedy

Some countries are voicing concerns that their national telecom champions could become acquisition targets for larger European competitors. “Operators of all sizes should have business opportunities in the single market and be able to benefit from and contribute to effective competition,” states the document discussing this issue.

Cool It, Mario

Mario Draghi’s push for EU countries to relinquish some control over spectrum—the radio frequency bands that enable mobile data transmission—didn’t exactly win him allies in national capitals.

Referred to as a “cash cow,” governments rake in billions of euros by auctioning off spectrum licenses to telecom operators. Draghi’s proposal advocated for standardized rules and timelines for spectrum licensing across the EU and suggested granting the European Commission a stronger regulatory role in overseeing spectrum management.

Mario Draghi suggested that regulators step back to allow European telecom providers to scale up and fund the upgrades needed for the Union's networks. | Sean Gallup/Getty Images

This suggestion, however, met resistance from several member states.

“Harmonizing spectrum is not a favorite topic for member countries,” said Katalin Molnár, Hungary’s ambassador and current chair of EU government discussions.

National governments emphasized in their response that managing spectrum allocation remains “a key public policy tool” and underscored “the continued importance of Member States’ national competencies in this area.”