Vodafone chief urges Europe to speed telecom consolidation reforms

Vodafone chief executive Margherita Della Valle pressed European governments to move faster on regulatory changes that would let mobile operators consolidate, arguing that bigger carriers are needed to finance the next generation of networks and close the gap with the United States and Asia.

Speaking in London, Della Valle said speed was the main obstacle and that Europe needs more investment, which in turn requires scale. Her message landed at a sensitive moment for policymakers, who are weighing how to balance competition rules against the capital intensity of 5G, cloud connectivity and the infrastructure needed to support artificial intelligence.

The debate is already under way in Brussels. The European Commission published new draft merger guidelines on April 30 and left the public consultation open until June 26. It also held a technical stakeholder workshop on June 10 as part of what it has described as the broadest review of merger guidance in two decades. The Commission says the draft is designed to reflect a changed geopolitical and trade context, with industrial scale, global competitiveness, innovation, investment, sustainability and resilience carrying more weight than before.

Della Valle framed the issue as more than a telecom industry grievance. She argued that well-invested digital infrastructure matters for economies as well as for security and resilience in the current geopolitical environment, broadening the case for consolidation beyond corporate strategy and into public policy. The timing gives telecom executives a narrow window to shape how regulators treat mergers before the final text is set.

The discussion is also moving alongside a wider EU connectivity push. The Commission says the Digital Networks Act was adopted on January 21 and is meant to modernize the legal framework for connectivity so Europe can boost innovation and investment in advanced, resilient digital infrastructure. That places telecom scale at the center of a broader effort to strengthen Europe’s digital base at a time when technology and industrial competitiveness have become strategic priorities.

Industry groups have been quick to back that argument. Connect Europe, which represents Europe’s leading telecom operators, welcomed the chance to comment on the draft merger guidelines. GSMA Europe has said scale is essential to secure long-term investment and reignite innovation in the region’s telecom sector. The European Parliament has also pointed to fragmentation as a barrier to creating EU-wide players and completing the single market for electronic communications.

The harder question for regulators is whether promised investment gains would reach customers. Bigger operators could finance wider coverage and faster service, but consolidation can also weaken price competition. The outcome of the merger-guidelines review may determine whether Europe bets on scale to fund next-generation networks, or keeps tighter limits on market power even if that leaves the continent trailing in digital investment.