Vodafone CEO urges Europe to allow mobile phone groups to scale to drive investment

Margherita Della Valle, CEO of Vodafone, is urging European governments to accelerate regulatory reforms, emphasizing the urgent need for mobile phone groups to achieve greater scale. Speaking at the Reuters Next summit in London, she highlighted that the current pace of change is a significant challenge.

Della Valle specifically referred to an ongoing EU consultation on merger guidelines, suggesting that faster action is essential. She believes that well-invested digital infrastructure is vital not only for economic prosperity but also for enhancing security and resilience in the current geopolitical climate.

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I think speed is always the challenge, and the faster the better.

"If we want this, we need more investment, which needs scale," Della Valle stated. She contends that without the ability to grow and consolidate, European telecom companies will struggle to attract the substantial investment required to keep pace with competitors in the United States and Asia.

The call for scale is directly linked to the capital-intensive nature of building and maintaining advanced mobile networks. European operators have historically faced fragmented markets and stringent regulations, hindering their ability to achieve the economies of scale seen elsewhere. Della Valle's remarks underscore a growing sentiment within the industry that a more consolidated European market is necessary for future innovation and competitiveness.

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Well-invested digital infrastructure is the right thing, not just for our economies, but also, frankly, for security and resilience in the current geopolitics. And if we want this, we need more investment, which needs scale.