European Commission
European Commission’s Digital Networks Act to restructure European telecom regulations with indefinite duration spectrum licenses
The European Commission’s forthcoming Digital Networks Act (DNA) aims to restructure the regulatory framework for the telecommunications sector in Europe to stimulate investment. The act indicates the European Commission is avoiding a mandatory levy system or new enforceable duties specifically targeting major tech firms. Instead, the proposal advocates for a voluntary cooperation framework where the largest online providers would engage in discussions moderated by the Body of European Regulators for Electronic Communications (BEREC), which comprises national telecom regulators.
A key component of this revamp, outlined in a draft document reviewed by Reuters, includes the potential allocation of lucrative radio spectrum licenses to telecom providers for an indefinite duration. The proposed legislation, scheduled for presentation by EU tech chief Henna Virkkunen on January 20th, suggests that licenses without time limits could foster a more functional secondary market for spectrum trading and leasing.
To prevent spectrum hoarding, EU regulators have suggested implementing “use-it-or-share-it or lose-it” conditions and specific roll-out obligations, ensuring the resource remains actively utilized and accessible to efficient competitors. The document said: “Spectrum usage rights shall be in principle granted for an unlimited duration….Sufficiently long duration of rights of use of radio spectrum should increase investment predictability to contribute to faster network roll-out and better services, as well as stability to support radio spectrum trading and leasing.”
The draft Digital Networks Act also addresses market dominance by suggesting that companies identified as having significant market power in one specific market could also be designated as such in closely related markets. This designation would subject them to stringent obligations, including enhanced transparency, non-discrimination requirements, and potentially price controls, cost accounting, or accounting separation.
This cooperative approach aligns with the Commission’s prior stance on “network fees.” A July 2025 policy analysis concluded that mandating large online platforms to pay network fees was not a viable mechanism for financing 5G and broadband infrastructure deployment. Nonetheless, the reported DNA draft introduces measures that could significantly impact telecom operators and national regulators. These include addressing spectrum license durations, sales conditions, and a proposed pricing methodology intended to guide national regulators during spectrum auctions—a sensitive area for member states given the substantial revenues generated by these auctions. Furthermore, the text is expected to provide EU-level guidance on fiber infrastructure rollout. A noted element is flexibility regarding the 2030 objective for replacing legacy copper networks; governments may be granted deadline extensions if they can demonstrate a lack of readiness.
Advocates for stronger EU harmonization argue that a unified market is essential for creating viable pan-European investment models, particularly for high-capacity fixed networks and future mobile technologies. Industry groups have consistently called for longer, more predictable spectrum licensing and consistent award conditions across the EU, arguing that national divergences impede deployment and escalate costs.
Critics of increased centralization caution that the DNA could facilitate a transfer of powers away from national regulators and governments.
The Reuters reporting suggests some national regulators may perceive the Commission’s planned interventions in spectrum policy and rollout guidance as a “power grab,” as spectrum management has traditionally remained a core national competence within the existing EU framework. Civil society organizations have raised concerns that attempts to restructure telecom market rules might compromise net neutrality principles or encourage commercial agreements that influence traffic management practices.
The DNA proposal is set against the backdrop of recent major EU digital legislation, including the Digital Services Act (DSA) and Digital Markets Act (DMA). To avoid repeating US criticism that EU rules disproportionately target US-based tech companies, the DNA appears designed to place the largest platforms within a cooperative, rather than compulsory, regime, while focusing binding measures on the connectivity sector’s regulatory architecture.
For large online services, the voluntary framework presents questions regarding incentives and enforcement. While a “best practices” code moderated by regulators can facilitate technical dialogue on issues like network resilience and traffic management, it inherently lacks hard obligations or penalties for non-compliance. Upon official publication, the Commission’s proposal will enter the EU’s ordinary legislative procedure. Core points of contention—including the balance between EU coordination and national discretion on spectrum, and the scope of any obligations placed on large digital firms—will be negotiated by member states in the Council and the European Parliament in the coming months.
If the reported draft details are confirmed, the Digital Networks Act signifies a strategic pivot: moving away from compelling Big Tech to directly finance networks and towards reshaping the existing telecom rulebook, spectrum practices, and infrastructure targets to unlock investment. The legislative negotiations will determine whether this combination is sufficient to accelerate infrastructure deployment without reigniting net neutrality disputes or national sovereignty arguments.
A July 2025 joint statement by consumer and civil society groups urged the Commission to preserve robust net neutrality within the DNA and voiced concerns regarding proposals linked to the “fair share” debate, including ideas for dispute-resolution systems between telecom operators and online services. Hence, Europe’s commitment to the principle of net neutrality is reaffirmed, mandating equal treatment for all Internet traffic by operators, a stance maintained despite industry calls for a less restrictive regulatory environment.
References:
https://eutoday.net/digital-networks-act-draft/
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EU Recommendations on very high capacity broadband network infrastructure and a joint approach to 5G rollouts
Summary:
On September 18th, the European Commission (EC) released a recommendation on how all 27 European Union (EU) member states could ensure a timely and more cost-effective way of deploying very high-capacity broadband connectivity infrastructure and develop a “joint approach” to 5G rollouts. The EC says that 5G is the most fundamental block of the digital transformation and an essential pillar of the recovery.
The EC says “the timely deployment of 5G networks will offer significant economic opportunities for the years to come, as a crucial asset for European competitiveness, sustainability and a major enabler for future digital services.”
The EC’s joint approach to 5G is by means of a “toolbox” that defines best practices, including “realistic measures” to assign radio spectrum for 5G networks under investment-friendly conditions. The Commission aims to facilitate the deployment of very high capacity fixed and wireless networks “by, for example, removing unnecessary administrative hurdles and streamlining permit granting procedure.”
The objective is to agree on a toolbox by March 30, 2021. The commission has requested each member state provide it with a roadmap for implementation by April 30, 2021, reporting back by the same date the following year. Please refer to detail timeline in Next steps below.
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In parallel, and closely linked to this Recommendation, the Commission proposed a new Regulation for the European High Performance Computing Joint Undertaking to maintain and advance Europe’s leading role in supercomputing technology to underpin the entire digital strategy and to ensure the Union’s competitiveness in the global setting.
The commission said the proposal “would enable an investment of €8 billion in the next generation of supercomputers – a substantially larger budget compared to the current one.” The EC noted that the COVID-19 crisis “has shown that connectivity is essential for people and businesses,” and that “very high capacity networks” have been enabling remote working and schooling, healthcare, and personal communication and entertainment. The EC said the pandemic “has changed the economic outlook for the years to come. Investment and reforms are needed more than ever to ensure convergence and a balanced, forward-looking and sustainable economic recovery.”
Executive Vice-President for a Europe fit for the Digital Age, Margrethe Vestager, said:
“Broadband and 5G connectivity lay the foundation for the green and digital transformation of the economy, regardless if we talk about transport and energy, healthcare and education, or manufacturing and agriculture. And we have seen the current crisis highlight the importance of access to very high-speed internet for businesses, public services and citizens, but also to accelerate the pace towards 5G. We must therefore work together towards fast network rollout without any further delays.”
Commissioner for the Internal Market, Thierry Breton, added:
“Digital infrastructures have proven to be crucial during the pandemic to help citizens, public services and businesses get through the crisis and yet recent investments have slowed down. At a time when access to broadband Internet represents both a fundamental commodity for Europeans and a geostrategic stake for companies, we must – together with Member States – enable and accelerate the rollout of secure fibre and 5G networks. Greater connectivity will not only contribute to creating jobs, boosting sustainable growth and modernising the European economy, it will help Europe building its resilience and achieve its technological autonomy.”
The Commission invites Member States to come together to develop, by 30 March 2021, a common approach, in the form of a toolbox of best practices, for the timely rollout of fixed and mobile very high-capacity networks, including 5G networks. Such measures should aim to:
- Reduce the cost and increase the speed of deployment of very high capacity networks, notably by removing unnecessary administrative hurdles;
- Provide timely access to 5G radio spectrum and encourage operators’ investments in expanding network infrastructure;
- Establish more cross-border coordination for radio spectrum assignments, to support innovative 5G services, particularly in the industry and transport fields.
The Recommendation also sets out guidance for best practices to provide timely access to radio spectrum for 5G as well as ensure stronger coordination of spectrum assignment for 5G cross-border applications. This is particularly important to enable connected and automated mobility, as well as the digitisation of industry and smart factories. Enhanced cross-border coordination will help to provide Europe’s main transport paths, particularly road, rail and in-land waterways, with uninterrupted 5G coverage by 2025. However, until mid-September 2020, Member States (and the UK) had assigned on average only 27.5% of the 5G pioneer bands. It is therefore essential that Member States avoid or minimise any delays in granting access to radio spectrum to ensure timely deployment of 5G.
The Recommendation also highlights the need to ensure that 5G networks are secure and resilient. Member States have worked together with the Commission and the EU Cybersecurity Agency (ENISA) on a respective toolbox of mitigating measures and plans, designed to address effectively major risks to 5G networks. In July, a progress report was published.
Sustainable network deployment for improved connectivity:
The Recommendation also builds upon the Broadband Cost Reduction Directive. It promotes the rollout of high-speed networks by reducing deployment costs through harmonised measures to ensure network providers and operators can share infrastructure, coordinate civil works and obtain the necessary permits for deployment. The Recommendation is calling on Member States to share and agree on best practices under this Directive, to:
- Support simpler and more transparent permit-granting procedures for civil works;
- Improve transparency on existing physical infrastructure, so that operators can access more easily all relevant information on the infrastructure available in a certain area, and facilitate permit-granting procedures, through a single information point in the administration of public authorities;
- Expand network operators’ rights to access existing infrastructure controlled by public sector bodies (i.e. buildings, street lamps and those belonging to energy and other utilities) to install elements for network deployment;
- Improve the effectiveness of the dispute resolution mechanism related to infrastructure access.
Improved connectivity can also minimise the climate impact of data transmission and thus contribute to achieving the Union’s climate targets. Member States are encouraged to develop criteria for assessing the environmental impact of future networks and provide incentives to operators to deploy environmentally sustainable networks.
Next steps:
The Recommendation calls for Member States to identify and share best practices for the Toolbox by 20 December 2020. The Member States should agree on the list of best practices by 30 March 2021.
As announced in its strategy “Shaping Europe’s digital future” in February, the Commission plans two further actions in this area:
- The update of its action plan on 5G and 6G in 2021. The updated plan will rely and expand on the spectrum-related actions in this Recommendation. It will look at the progress made so far, and set new, ambitious goals for 5G network roll-out.
- The revision of the Broadband Cost Reduction Directive. The next steps in this process are the launch of an open consultation in autumn 2020 and of a dedicated study to evaluate the current Directive and assess the impact of several policy options.
The Recommendation will contribute to the achievement of the objectives set out in the Broadband Cost Reduction Directive as well as the European Electronic Communications Code. The Code, which needs to be implemented into national law in Member States by 21 December 2020, aims to promote connectivity and access to very high-capacity networks by all citizens and businesses.
The Commission’s strategy on Connectivity for a European Gigabit Society sets the EU’s connectivity objectives. By 2025, all main socio-economic drivers (i.e. schools, hospitals, transport hubs) should have gigabit connectivity, all urban areas and major terrestrial transport paths should be connected with uninterrupted 5G coverage, and all European households should have access to connectivity offering at least 100 Mbps upgradable to Gigabit speeds.
Other EU Projects and Country Plans:
As announced in June 2020, the EU is funding 11 new technology and trial projects to enable 5G connectivity and pave the way for autonomous driving on main road, train and maritime routes in Europe.
Individual EU member states are also grappling with their own post-pandemic recovery plans. For example, France is earmarking €240 million ($284 million) for fiber networks as part of its €100 billion ($118 billion) stimulus package.
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References:
https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1603
https://www.lightreading.com/5g/ec-pins-recovery-hopes-on-5g-and-supercomputing/d/d-id/764064?
