The CEOs of Orange  (Christel Heydemann) and Deutsche Telekom  (Timotheus Höttges) have issued a rare joint call for sweeping policy reform, warning that Europe risks losing ground in connectivity, cloud, and AI without decisive action.

Europe’s largest telecom operators have united behind an urgent message to EU policymakers: without a substantial shift in regulatory and investment policy, Europe’s ambitions for digital sovereignty and global competitiveness will fall short.

In a joint statement released this week, the CEOs of Orange and Deutsche Telekom outlined what they describe as the four essential pillars of a “Sovereign Digital Union.” Their intervention comes as the European Union rushes to strengthen its technological independence in the face of growing global competition.

Four pillars of European Digital Sovereignty

According to the operators, Europe’s digital future hinges on four core building blocks: control, choice, competency, and critical size.

Control reflects the need for secure, resilient digital infrastructure capable of withstanding both physical and cyber threats. With data consumption, cloud reliance, and AI workloads surging, operators argue that Europe must be able to safeguard communications networks as strategic assets.

Choice focuses  on developing interoperable digital ecosystems and nurturing European alternatives in sectors where the region is currently dependent on non-EU suppliers. The CEOs warn that Europe cannot achieve true resilience without reducing technological dependencies in critical domains.

Competency points to Europe’s ability to cultivate the skills, talent, and technical expertise required to sustain its own innovation cycle. With the global race for AI talent intensifying, the statement says Europe must invest heavily in digital education and research to remain competitive.

Finally, critical size refers to achieving the scale necessary for sustained investment, innovation, and competitive growth. Europe’s fragmented digital market, long criticised for inhibiting consolidation and discouraging investment is, they argue, incompatible with global competition.

Demand to overhaul regulation

The telecom leaders are calling for an overhaul of the EU’s regulatory framework, which they say is no longer fit for purpose. Central to their proposals is a “bold Digital Networks Act” that they believe will harmonise telecom rules across member states.

The proposed act would echo the recommendations of the recently published Draghi Competitiveness Report, which urges the EU to stimulate investment in digital infrastructure. Europe’s telecoms sector invests over €50 billion annually in networks, yet operators warn that regulatory constraints limit their ability to scale deployments, including 5G, fibre, and next-generation resilient networks.

“European citizens, businesses, and administrations cannot benefit from a competitive and sovereign EU without robust, widespread, secure, and resilient connectivity,” the CEOs commented in their joint statement.

Cloud Sovereignty and the Rise of ESTIA

Orange and Deutsche Telekom argue that the EU must urgently adopt common sovereignty criteria and embed them into legislation – especially in public procurement, where European cloud solutions have long struggled against dominant US hyperscalers.

To reinforce the region’s capacity in this area, both operators have joined 10 other European technology firms to establish the European Sovereign Tech Industry Alliance (ESTIA). The alliance aims to promote European digital solutions and advocate for a resilient, competitive regional cloud ecosystem.

The operators say that giving European cloud providers scale through procurement and coordinated industrial policy is essential for reducing reliance on non-EU providers and ensuring that sensitive public-sector data remains under European jurisdiction.

Positioning Europe as an AI continent

The CEOs also argue that Europe must evolve from a passive consumer of AI solutions to a global leader in developing, deploying, and operating artificial intelligence. The industry has a dual role: deploying AI to build smarter, more efficient networks, and providing the specialised computing infrastructure required for European enterprises, public bodies, and academia to apply AI at scale.

“As with connectivity, we have a role to play in enabling access to AI tools and the specialised computing resources that European industry needs,” they said.

An appeal to policymakers

With a new European Commission and Parliament set to define the next five years of digital policy, the operators argue that sovereignty will only be achieved if Europe backs its strategic vision with massive investment, bold political decisions, and active collaboration between public and private sectors. They warn that Europe risks falling behind global competitors (particularly the US and China)if it does not act more decisively.

“As leading European telecom operators, we are committed to strengthening Europe’s digital sovereignty and enhancing its global competitiveness,” they conclude. “We are building the infrastructure and technology that Europe needs – from connectivity to cloud, AI, and cybersecurity. We call on European policymakers to support the telecoms sector with ambitious and effective reforms.”

RELATED STORIES

Capacity Europe 2025: Europe’s data centres confront the AI era

Europe telco CEOs call for market consolidation and regulatory reform