The year 2022 has been overshadowed by the war and continues to be overshadowed by the post-pandemic. In 2023, with a challenging geopolitical, economic, and technological context, public policies take on a new dimension and that’s How Government Policy Affects Tech Startup Growth: understanding our world and acting to overcome challenges, perfecting economic and business growth strategies, and digitalization and green sustainability are essential issues. Digital infrastructures are a lever for global competitiveness.
In order to achieve the digital transformation of economies and societies and enhance the quality of citizens’ lives, it is necessary to have resilient, high-capacity networks with extensive coverage. The European Commission presented the targets of the European Digital Decade 2030 to achieve gigabit fiber connectivity for everyone and 5G everywhere. Accelerating the deployment of 5G in Europe is necessary, but it requires the right conditions to execute the investment.
Regulatory Clarity

In order to facilitate the rapid deployment of high-bandwidth networks, it is essential to prioritize the simplification of bureaucratic procedures related to civil engineering, ensure access to spectrum under fair conditions, establish favorable investment frameworks, guarantee legal certainty, and provide targeted support for deployments in rural or underserved regions. In Latin America, digitalization is a possible dream. To connect and engage the unconnected, TelefĂłnica’s Rural Manifesto proposes engaging public and private efforts in a holistic scientific vision.
This approach centers on a new model structured around three fundamental pillars: innovation, cooperation, and the sustainability of the investment framework. Moreover, drawing from the allegory of the ‘golden goose,’ it underscores the importance of ensuring spectrum allocation under appropriate conditions—an essential step toward fostering long-term benefits for both businesses and consumers. A resilient and sustainable telecom industry is the framework within which digital and ecological transformation can be encouraged and benefit from enjoying the advantages it will bring to everyone.
Tax Policies

In contrast to other geographies, the industry is highly fragmented in Europe. In light of the evolving landscape, the current market structure is increasingly undermining investment and innovation potential, thereby posing a risk to the timely realization of Europe’s digital leadership objectives. This shifting environment is expected to drive a wave of mergers among telecommunications and technology companies, highlighting the need to adapt competition policy to contemporary market conditions. Recognizing these developments, European authorities have responded by enacting the Digital Markets Act (DMA), set to come into force in May 2023.
Andreas Schwab, Member of the European Parliament, emphasized that the regulation sets out essential rules for the operation of the future digital economy, aiming to ensure fair and open digital markets as well as a level playing field. This, he noted, marks a significant step toward curbing the growing dominance of major technology companies. There has been a global debate over the past year regarding fair cost recovery for broadband and the sustainability of network investment. The telecommunications sector shares with governments the commitment to unlock the full potential of connectivity.
Infrastructure and Digital Access

To this end, the industry needs policies to provide the right environment for the sustainability of investment in networks, rather than shifting upgrade costs to all end-users; policies to promote a more balanced digital ecosystem, to enable the growth of double-sided markets. Indeed, the Internet has changed dramatically in the last 10 years, and the asymmetries in the bargaining power of large content providers are widening, preventing the telecommunications sector from negotiating on a level playing field. Digital technology is changing people’s lives and the competitiveness of businesses.
The EU’s digital strategy, with its Digital Decade goals, aims for a beneficial digital transformation for people and businesses while contributing to achieving a climate-neutral Europe by 2050. The European Commission’s recent Digital Economy and Society Index (DESI) demonstrates a gradual development of digital indicators in the field. The telecommunications industry is a key ally in addressing global challenges and accelerating the digital transition in all regions. All this while digitalization is a fundamental pillar to accelerate the green transition in diverse sectors.
Conclusion

The world finds itself in a society experiencing the digital transition at full speed, where digital gaps are increasing. In this sense, what is digital inclusion? Sharing any type of knowledge, facilitating entrepreneurship and small businesses, improving productivity, promoting access to essential services, and consolidating the Technology cycles are becoming shorter: with 5G and 5G Standalone connectivity in full swing, there is already talk of the arrival of 6G. And to take full advantage of the benefits of current technologies, the industry is promoting network innovations such as Edge Computing.
Promoting innovation to make regions more competitive is one of the highest priorities for industrial policy, making operators one of the main interlocutors for businesses and governments. Finally, as Artificial Intelligence (AI) and new technologies advance, concerns arise about their potential impact on employment, privacy, and other areas.With the increasing amount of personal data collected and stored by companies, concerns about privacy and digital rights are growing. Data protection regulatory frameworks are proliferating.