The report highlights a growing contradiction at the core of Europe’s digital economy. Digital communications now account for 5% of EU GDP and form the backbone of Europe’s competitiveness, security and technological sovereignty. Yet total telecom investment—still high at €64.6bn in 2024—fell by 2% for the second consecutive year, and mobile revenues per user are lower than they were a decade ago. This is not a cyclical dip but a structural problem: high regulatory burdens and persistent market fragmentation continue to erode investment capacity.
This is happening at a pivotal political moment. With negotiations on the Digital Networks Act (DNA) underway and the review of the EU Merger Guidelines nearing completion, the data sends a clear signal: Europe can no longer postpone policy reform
Author: Rupert Wood & Simon Sherrington Analysys Mason
Publisher: Connect Europe
Publication date: February 2026