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Alcatel-Lucent CEO Michel Combes says Europe Must Stop its Cellular Race to the Bottom

Mae Kowalke, TMCnet Contributor

As leaders in Europe debate whether the EU is “back” during the World Economic Forum, the region is increasingly falling behind when it comes to telecommunications, according to Alcatel-Lucent CEO Michel Combes.

“There is a real danger,” noted Combes in a recent blog post on Europe’s digital divide (published in the Wall Street Journal, “that Europe is losing ground in the information era.”

That’s because there is an increasing gap between what the latest smartphones can deliver and what Europe’s telecommunications companies can support due to a price war that inhibits infrastructure upgrades.

“Europe is locked in a vicious circle of competition focused exclusively on price, one that forces operators to reduce their investments and destroys their innovation capacity,” noted Combes. “This type of competition is bad news for a digital Europe and its consumers.”

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