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IBM and peers urge EU to boost digital competitiveness

Published 17/04/2024, 13:52
© Reuters.

BRUSSELS - Ahead of a key meeting of D9+ digital ministers in Dublin on April 19, 2024, tech giants Ericsson (BS:ERICAs), IBM (NYSE: NYSE:IBM), Intel (NASDAQ:INTC), Nokia (HE:NOKIA), and Vodafone (NASDAQ:VOD) have issued a joint statement calling for European policymakers to take decisive action to enhance the region's digital competitiveness.

The companies emphasized the need for a comprehensive Digital Single Market, addressing the investment shortfall in digital connectivity, and reducing regulatory burdens that could hinder the operations of digital businesses.

The statement from the technology leaders asserts that Europe has the potential to lead the industrial internet globally by harnessing emerging technologies such as artificial intelligence (AI), quantum computing, and 5G Standalone connectivity.

The group outlined a series of policy actions they believe are necessary to drive EU competitiveness through technology:

1. The development of a Digital Single Market should be accelerated, with a focus on the consistent implementation of existing digital regulations and avoiding new ones that could slow down telecom network deployment or digital tool adoption.

2. Investment in advanced connectivity like 5G, fiber, and future 6G networks should be incentivized. The group suggests modernizing the regulatory framework for telecoms, including revisiting merger control and spectrum allocation policies and integrating advanced connectivity solutions into the EU’s taxonomy to attract green financing.

3. Policymakers should differentiate between business-to-business (B2B) service providers, which usually operate under contractual agreements with limited access to client data, and consumer-facing companies when considering new regulations.

4. A policy environment that fosters the growth of trusted companies in Europe should be encouraged, along with international cooperation to maintain a positive business climate.

5. Europe should prepare for the quantum era, which is expected to bring transformative breakthroughs in various strategic industries. Policymakers should promote experimentation in industrial applications of quantum technology, encourage resilient supply chains, and incentivize private sector investment in quantum and AI technologies within Europe.

The companies' representatives, including senior figures from each firm, stressed the importance of Member States and the EU working alongside the industry to deploy world-class digital infrastructure and adopt productivity-boosting tools, while ensuring that the regulatory environment is future-proof.

This call to action is grounded in the belief that such measures are crucial for Europe to maintain its competitive edge in the rapidly evolving global digital landscape.

The information for this article is based on a press release statement.

InvestingPro Insights

As the tech giants rally for a more robust digital framework in Europe, IBM stands out as a company with a strong track record and promising indicators for the future. According to real-time data from InvestingPro, IBM boasts a market capitalization of $168.45 billion, a testament to its substantial presence in the industry. The company's commitment to shareholder returns is evident with a dividend yield of 3.5%, which is particularly notable given that IBM has raised its dividend for an impressive 28 consecutive years, highlighting its financial stability and investor-friendly approach.

InvestingPro Tips indicate that IBM is not only a prominent player in the IT Services industry but also exhibits low price volatility, suggesting a level of resilience in its stock performance. Analysts have taken a positive stance on the company, with five analysts revising their earnings upwards for the upcoming period, reflecting confidence in IBM's business strategy and growth potential.

Moreover, IBM's stock has experienced a significant price uptick over the last six months, with a 38.06% total return, and analysts predict the company will remain profitable this year, having been profitable over the last twelve months. This could be a signal of the company's ability to capitalize on the digital transformation trends highlighted in the joint statement by the tech giants.

For readers looking to delve deeper into IBM's financial health and future prospects, there are additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/IBM. For those interested in an InvestingPro subscription, remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 11 more InvestingPro Tips listed for IBM, offering a comprehensive analysis for informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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