5G Infrastructure in Europe: Navigating Policy-Driven Opportunities in High-Growth Markets

In 2025, Europe's 5G landscape is a tale of two speeds: countries like Denmark, Sweden, and Greece lead with 5G availability rates above 75%, while the UK, Belgium, and Hungary trail with coverage under 50%. This disparity isn't due to geography or population density but to policy execution. For investors, the lesson is clear: where regulatory frameworks align with market demand and infrastructure investment, telecom companies thrive. Let's unpack the opportunities in markets where 5G rollout is accelerating—and where it's lagging.

The Policy-Driven 5G Gold Rush

Northern and Southern Europe have leveraged early spectrum allocation, subsidies, and network-sharing agreements to surge ahead. Sweden, for instance, mandated that Telia and Tele2 invest in rural 5G as part of their 700 MHz spectrum licenses. These operators, supported by EU funding and the Net4Mobility joint venture, achieved a 21.3% year-over-year increase in 5G availability. Italy followed a similar playbook, using EU recovery funds and 3G sunset policies to repurpose spectrum for 5G, boosting coverage by 20.5%.

In contrast, the UK faces a perfect storm of regulatory hurdles: costly Huawei equipment removal, lack of binding 5G coverage obligations in 2021 spectrum auctions, and post-Brexit funding gaps. Its 5G availability of 45.2% pales against Denmark's 83.9%, despite similar geographic challenges. This underscores a critical truth: policy shapes profitability in the 5G race.

High-Growth Markets: Sweden, Greece, and Spain

Sweden: The Power of Partnership

Telia (Telia Company AB, ticker: TELA.ST) and Tele2 (Tele2 AB, TEL2.ST) dominate Sweden's 5G rollout. Their success stems from aggressive 700 MHz deployments, government subsidies, and the Net4Mobility network-sharing agreement. Telia's Q1 2025 EBITDA grew 1.3% YoY to €2.1 billion, driven by 5G expansion and cost discipline. Investors should monitor TELA.ST and TEL2.ST for capital gains, as Sweden's 5G SA adoption is expected to surge with EU-backed infrastructure grants.

Greece: Cosmote's 5G Dominance

Cosmote (OTE S.A., OTE.AX) leads Greece's 5G push, achieving 50% population coverage and planning to decommission 3G by 2025. With a 55% mobile market share and 16.9% net income margin in Q1 2025, Cosmote's disciplined cost management and EU-funded fiber expansion (targeting 2.1 million FTTH connections by 2025) make it a standout. Greece's Ultra-Fast Broadband project, backed by €223 million in EU funds, further amplifies its potential.

Spain: 5G SA Leadership

Spain's Telefónica (Telefonica, TEF) and MasOrange (Orange Spain) are racing to deploy 5G SA, with a sample share of 8% in Q2 2025—far above the EU average of 1.3%. The government's €4.3 billion investment, including €883 million allocated for 2025, funds 7,000 new 5G sites in rural areas. Telefónica's 6G infrastructure spend underscores its long-term bet on connectivity. For investors, TEF offers exposure to a market where policy and demand are perfectly aligned.

The Laggards: Risks and Red Flags

The UK and Belgium exemplify how policy missteps stifle growth. The UK's 5G rollout is hampered by the costly Huawei removal mandate and a lack of rural coverage obligations. Meanwhile, Belgium's federal disputes delayed 700 MHz auctions until 2022, leaving operators like Proximus (Proximus SA, PROX.BR) scrambling to catch up. Investors should avoid these markets unless regulatory reforms materialize.

Investment Strategy: Where to Position

1. Prioritize Policy Alignment: Target countries with proactive spectrum strategies and EU funding (Sweden, Greece, Spain).
2. Focus on Network-Sharing Agreements: Companies like Telia and Tele2 benefit from cost synergies.
3. Monitor 5G SA Adoption: Spain's 5G SA rollout is a bellwether for Europe's competitiveness.
4. Diversify Across High-Growth Operators: A portfolio of Telia, Cosmote, and Telefónica captures geographic and technological diversification.

The 5G race in Europe isn't just about technology—it's a policy-driven gold rush. For investors, the winners are clear: companies in markets where regulators, operators, and EU funds are pulling in the same direction. As the EU's Digital Decade 2030 goals take shape, these firms will define the next decade of connectivity—and profitability.