Gigabit Infrastructure Act: new European rules to spur telecoms networks roll-out

On 6 February, the Council presidency and the European Parliament reached a provisional agreement on a proposal to replace the 2014 Broadband cost-reduction directive (BCRD) by the Gigabit Infrastructure Act (GIA) to accelerate the deployment of gigabit network infrastructure across Europe.

The primary objective of the GIA, proposed in February last year, is to contribute to the cost-efficient and timely rollout of very high-capacity networks to meet increasing connectivity needs. New rules are being set to enable providers of very high-speed public communications networks to enhance access to physical infrastructure of network operators and public organisations, better coordination of civil works and uniform and digitally accessible permit procedures. In addition, the rules aim to make newly constructed and renovated buildings accessible for the deployment of these networks.

The GIA not only concerns the rollout of fast fixed networks such as fibre optic but is also a means to accelerate the rollout of fast mobile networks such as 5G and facilitating the shared use of physical infrastructure. The GIA addresses deployment and access to in-building physical infrastructure. It is expected to facilitate cross-border applications and to allow stakeholders, telecoms operators, equipment manufacturers or civil engineering companies, to achieve better economies of scale.

According to the Council press release and the final trilogue document, the provisional deal resulted in a provisional agreement on the issues below:

• Accelerating the maximum duration of procedures for granting permits for the deployment of very high-capacity networks to four months. EU countries will be able to derogate from the tacit approval principle by either choosing for a compensation mechanism for any damage suffered as a result of non-compliance with the deadlines in accordance with national law, or facilitating that the applying operator may refer the case to a court or to a supervising authority in the case the permit has not been granted within the 4-month deadline.
• A mandatory conciliation mechanism between public sector bodies and telecom operators was introduced as an intermediate step to facilitate the permit-granting procedure.
• The negotiators also added an exception for a transitional period for smaller municipalities, as well as specific provisions to promote connectivity in rural and remote areas.
• The factors when calculating fair and reasonable conditions for access were clarified.
• A specific provision to address the presence of intermediaries between landowners and infrastructure operators was introduced.
• Specific provisions were agreed on a voluntary ‘fibre-ready’ label for buildings.
• Several carve-outs for critical national infrastructure were included in the text.
• The Parliament added a proposal for the abolishment of retail surcharges for intra EU Communications. The new provisions ensure that calls and SMS within the EU will be at the same price as the domestic calls from 2029.

Telecoms operators’ industry associations ECTA, ETNO, GIGAEUROPE & GSMA released a joint statement on the GIA expressing their concerns. According to the industry, the GIA is a "measure that penalises telecoms operators, without producing any real benefit in terms of administrative simplification". In particular, the industry criticises the lack of an unconditional tacit approval procedure and the abolishment of intra-EU charges. It is rather striking that a law which aims to provide incentives to spur the roll-out of new gigabit networks is not being supported by the telecoms operators who should be benefitting from the new rules.

Next steps

The proposal needs to be approved by the Parliament and the Council on the basis of the lawyer linguistic corrected text version. This could take one or two months to be completed. Upon formal adoption, the Gigabit Infrastructure Act will be published in the Official Journal of the European Union and will enter into force on the twentieth day of publication. The GIA will enter into force 18 months after it is published in the Official Journal. The provisions with regard to the digitalisation of the single digital entry points will enter into force after 24 months.

Member States will need to change or withdraw provisions that are in conflict with the regulation. Based on the minimum harmonisation approach, Member States may introduce additional provisions that are stricter or more detailed than the minimum requirements pursuant to the regulation.

For more information, please contact Feyo Sickinghe.

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