5G rollout in Europe lags behind the US and Asia warnings from Vodafone boss

Europe is facing a critical challenge as it falls behind the United States and Asia in the rollout of 5G infrastructure, according to Vodafone’s Chief Executive, Margherita Della Valle. Speaking earlier this week, Della Valle described the continent as a “laggard” in digital connectivity, citing risks to economic growth and increasing dependence on other regions for technological advancements.

Della Valle’s comments come amid Vodafone’s £16.5 billion merger with Three, a move designed to create the UK’s leading provider through increased scale and investment in 5G technologies. The merger is expected to unlock £11 billion for network development, an important milestone for a region struggling to keep pace with global competitors. She emphasised that a stronger push at the European level is required to foster the scale necessary for meaningful industry progress.

Historically, Europe led the world in the rollout of 2G networks during the early 1990s, but this leadership has eroded over successive decades. Today, Britain ranks 22nd out of 25 European countries for 5G availability and download speeds, according to data from Opensignal. Concerns over the continent’s ability to close this widening gap have raised pressing questions about regulatory approaches and priorities.

The European telecoms market remains highly fragmented, which has hindered investment and innovation, especially when compared to the consolidated markets of the US and Asia. Della Valle noted that European operators are increasingly “technology takers” rather than “technology makers” as companies in the US dominate advancements in satellite technologies and subsea cable infrastructure.

Telefonica’s new Chief Executive, Marc Murtra, also expressed optimism about the region’s capabilities, urging for regulatory environments that encourage consolidation and industry expansion. Murtra likened the current fragmented market to playing football with one hand tied behind the back, asserting that with the right strategies, Europe could regain competitive footing.

Vodafone itself has adjusted its business strategy under Della Valle’s leadership, including divestments in struggling Italian and Spanish markets. These efforts have raised €12 billion and allowed the company to sharpen its focus on Germany and the UK. For Europe, the message is clear: without decisive action to embrace scale and innovation, the region risks being left further behind in the modern digital economy.