Telefonica CEO Jose Maria Alvarez-Pallete (pictured) warned it was critical Europe introduced competition rules to strengthen the beleaguered telecoms sector, while pointing to the need to keep 5G spectrum prices in check and scrap mandatory wholesale terms.

Speaking during the FT-ETNO Summit 2020 virtual event, the executive called on Europe’s regulators to be “brave” in the design of new rules for global digital players, while pointing to the need to relax those imposed on telecommunications companies to “level the playing field”.

Alvarez-Pallete argued despite the critical role of connectivity during Covid-19 (coronavirus) restrictions, revenue for companies in the telecommunications sector continued to decline, with stock market valuations of several players “at its lowest”.

He also questioned the level of control held over companies on the front line of an explosion in use of digital services.

“During the pandemic digital services increased exponentially, video calls and online streaming traffic have increased by seven times, but does anyone know what market share the providers of these services have?”

“Does any regulator have authority over, or the power to request such information? Are those conversations stored? Under what kind of security controls?”

The executive noted after imposing regulations on digital players, the next priority should be deregulation of the telecommunications sector, pointing to restrictively high 5G spectrum fees and wholesale agreements he deems unfair.

He added there must be: “An end to the expropriation of new generation networks by imposing mandatory access to third parties at regulated prices. Those networks have been built in a competitive environment and on occasions with co-investment”.

His comments come as the European Commission continues to assess its next move in regulating large multinational technology companies.

Climate goals
Elsewhere in the session Alvarez-Pallete gave an update on Telefonica’s progress towards its climate and sustainability goals.

He noted the company was on target to achieve net zero greenhouse gas emissions in 2025, trimming five years from its previous timeline, and as part of the same drive planned to dismantle its entire fixed copper network in its home market of Spain.