Vodafone CEO Margherita Della Valle urged European governments to speed up regulatory changes to allow mobile-phone groups to consolidate and achieve scale [1].

This push for consolidation is intended to unlock the massive investment required for next-generation networks. Without these changes, the company suggests Europe may struggle to keep pace with the digital connectivity advancements seen in the U.S. and Asia [1].

Della Valle said that the current regulatory environment hinders the ability of telecom operators to attract the necessary capital for digital infrastructure [2]. The focus of these investments would primarily target the rollout of 5G and fibre-optic networks across the continent [1].

By allowing operators to merge or consolidate, the industry could create larger entities with the financial capacity to fund expensive infrastructure projects [3]. This scale is viewed as a prerequisite for driving the investment levels needed to modernize the region's connectivity [2].

The call for reform comes as European regulators weigh the balance between promoting competition and allowing the industry to grow. Della Valle said that the urgency of the digital transition requires a shift in how governments approach the mobile-phone sector [3].

Industry leaders have frequently noted that fragmented markets in Europe make it difficult for single operators to achieve the returns necessary to justify high-cost infrastructure deployments [1]. The CEO's appeal highlights a growing tension between EU competition laws and the strategic need for technological sovereignty in the face of global competition [2].

“Europe's digital infrastructure needs scale to drive investment.”

The request for regulatory easing reflects a strategic shift in the European telecom sector. If regulators allow more consolidation, it could lead to fewer but more powerful operators capable of funding the transition to 5G and fibre. However, this move risks reducing consumer choice and increasing prices, creating a policy conflict between the goal of rapid infrastructure modernization and the EU's commitment to a competitive, multi-operator market.