DRESDEN, Germany, June 15 (Reuters) - Hamid Akhavan, chief executive of Deutsche Telekom's mobile business, called on national and European regulators to use their powers wisely, warning that poor regulation would damage Europe's technological development.
"Government policy if done properly does a lot to unleash potential; if done poorly it will hinder evolution," Akhavan said on Monday at the International Conference on Communication in Dresden.
"We need freedom to move and to act before it is too late and (before we) have damaged this industry," Akhavan said, and appealed to regulators to devise rules in such a way that Deutsche Telekom and its competitors could recoup investments.
The European Union has drawn up a major reform of EU telecoms rules to increase consumer protection, competition and investment in new networks, but operators such as Deutsche Telekom and Spain's Telefonica have said some decisions go too far and may threaten investment plans.
Akhavan said that now was the time to invest in infrastructure and innovation, as technology was changing rapidly and European telecom companies faced competition not just from traditional players but also from the likes of Google , Apple and cable companies.
"It's already obvious that today's broadband is already tomorrow's narrowband ... we need an infrastructure which can handle exploding demand," Akhavan said.
Telecom operators had so far weathered the economic crisis well but were slowly beginning to feel some pain too, he continued, as "users move away from wants to needs".
Akhavan also said he did not see any signs of significant change in the economic climate.
Telecom Italia's Chief Executive Franco Bernabe said last week he saw signs of an economic recovery that would benefit the industry.
Deutsche Telekom cut its forecasts in April as weak conditions and tough competition in major markets -- especially Britain and United States -- hit earnings.
Ever since, speculation has swirled that Deutsche Telekom may sell its UK wireless business.
Akhavan declined to comment on any mergers and acquisition activity in Britain, saying only that "the UK is an important market and that (the company) had boosted its management" there. (Reporting by Nicola Leske; Editing by Rupert Winchester)