Further slowdown in investments in the telecommunications sector and excessive regulations burdening operators may hold back productivity and Poland’s economic growth, according to a report by Prof. Konrad Raczkowski of the Cardinal Stefan Wyszyński University (UKSW), “The Telecommunications Market in Poland. Trends and Development Prospects.” Without strategic decisions in this area, Poland risks falling behind digital leaders.
“The telecommunications market in Poland must be treated as a key element of the national economy. Without it, we won’t achieve the productivity and economic growth rates we aspire to. Telecom is the backbone of modern development,” emphasizes Prof. Konrad Raczkowski, economist and Director of the Center for Global Economy and the Institute of Economics and Finance at UKSW, in an interview with Newseria.
Telecom as the Foundation of the Digital Economy
The report highlights that telecommunications is the backbone of the digital economy and a critical infrastructure for public services, the private sector, and the information society. Without stable financing, the development of artificial intelligence (AI), the Internet of Things (IoT), or convergent services will not be possible.
“If we don’t allow the telecom market to grow, AI won’t develop the way we want. Entire areas around AI will either stagnate or lag behind other countries,” says Prof. Raczkowski.
Telecom is not only an infrastructure sector but also a condition for developing data-driven business models, automation, and digital services. Without sufficient investment, Poland risks missing out on the potential of IoT, edge computing, and critical connectivity for industry and administration.
Falling Investment Levels
Poland may remain on the sidelines unless investment increases. According to the report, Poland’s investment-to-GDP ratio is among the lowest in the EU, at 16.9%, compared with over 22% in the EU average.
“The Polish telecom market is heavily regulated and burdened, focusing on fiscal needs rather than economic growth. If our investment-to-GDP ratio is at 16.9%—the lowest in nearly three decades—we must start raising it by changing the regulatory approach,” Raczkowski stresses.
In Poland, 99.4% of telecom operators are SMEs, a structure that makes consolidation difficult and limits capacity to fund large infrastructure projects. Moderate consolidation could boost investment, improve service quality, and accelerate the development of critical infrastructure. According to the Office of Electronic Communications (UKE), investment spending fell to PLN 9.5 billion in 2024, down 14.3% year-on-year.
Regulatory Burdens and Frequency Fees
The report also points out that the lack of a unified EU telecom market weakens Europe compared with the U.S. and China, which operate on scalable markets. A shift is needed from maximizing local competition toward encouraging investment efficiency and innovation.
“If operators pay huge sums just to access frequencies, they won’t spend those funds on infrastructure. The state should require operators to direct part of these amounts toward specific investments within a defined period,” Raczkowski notes.
In 2024, the four main operators—Orange, Play, Plus, and T-Mobile—each received one 100 MHz block in the 3400–3800 MHz band, with an obligation to launch or upgrade 3,800 base stations within 48 months. While necessary for 5G development, high license fees may slow progress. Countries like the U.S., Australia, and the UK earmark part of license revenues for infrastructure investment, a mechanism also recommended for Poland.
AI, Cybersecurity, and Critical Infrastructure
AI cannot replace telecom infrastructure—it can only complement it. Cybersecurity must therefore become a priority.
“Just as we buy health or life insurance, we must also invest in cybersecurity—for both public institutions and private companies,” stresses Raczkowski.
Telecommunications, alongside energy, is part of critical infrastructure. Interruptions in network access could paralyze public administration, emergency services, supply chains, and the financial system. Without proper security investments, even the most innovative solutions may be exposed to cyberattacks.
Geopolitical Context
In today’s geopolitical environment—including the war in Ukraine—the resilience of telecom systems has strategic importance. Loss of access to networks or energy could cripple both government and private institutions. Some regional countries, such as the Czech Republic and Lithuania, already apply more flexible regulatory approaches, treating telecom development and cybersecurity as elements of national defense.
“Our neighbors show that regulatory bodies can take a more liberal approach, focusing on development. Competing today is not just about rivaling other EU states—it’s about competing globally. That’s the perspective Poland must adopt,” Raczkowski concludes.
Source: CEO.com.pl
