EU Telecoms Reform: what to expect from the Digital Networks Act

The European Commission recently launched a call for evidence which is open until 11 July 2025 in the run up to proposed Digital Networks Act (“DNA”). This presents an opportunity to simplify and further harmonise the current EU telecoms regulatory framework under the European Electronic Communications Code (EECC), with a view to increasing the competitiveness of the EU telecoms sector as well as fostering a more integrated single market. Accordingly, this could process could lead to substantial reform of EU telecommunications regulation. An eventual DNA proposal is scheduled for adoption in Q4 2025.

In parallel, the European Commission has also launched a consultation on the review of its Recommendation on relevant markets in the electronic communications sector.

Background and political context

The need for a DNA proposal has emerged from recommendations from the influential report on EU competitiveness from former Italian Prime Minister Mario Draghi, as well as reports from Enrico Letta, Sauli Niinistö. These studies are in addition to the Commission's own 2024 White Paper on Europe's digital infrastructure needs (as covered in our earlier B&B article). Work on the DNA proposal has been motivated by the knowledge that digital networks are undergoing technological transformation, with cloud and edge computing capabilities becoming integral parts of connectivity infrastructure. 

From its perspective, the Commission has reached the conclusion that the current regulatory framework lacks the necessary tools for the EU to remain competitive. It has identified barriers to cross-border operations and scaling up, which the Commission believes hampers deployment of very high-capacity networks and technological transformation towards cloud-based networks and services. 

Key problems identified

According to the Commission, there are three key areas for improvement:

1. Market fragmentation - the Commission has identified several root causes of persistent market fragmentation: 

• Varying telecoms requirements in each Member State: Under the EU’s harmonised telecoms general authorisation regime pursuant to the EECC (whereby providers can generally provide services in all Member States), the relevant regulatory obligations are implemented at national level with a degree of variance, creating barriers to cross-border operations;
• Spectrum assignment inconsistencies: assignment procedures and conditions are loosely coordinated through voluntary, non-documented peer review processes, whilst investments are not always sufficiently incentivised; and
• Satellite market fragmentation: the growing demand for EU satellite market access is coupled with fragmented, non-harmonised authorisation procedures, risking discrimination between operators and barriers to cross-border satellite services. 

2. Regulatory complexity - the current framework also faces several structural challenges:

• Differing ex ante access remedies (Significant Market Power remedies) imposed by national regulators to promote competition and address market failure; 
• Lack of proactive measures to foster copper switch-off/retirement with moves to all IP/fibre networks; 
• Unclear Open Internet (or ‘Net neutrality’) Rules constraining innovative services; and
• Level playing field – balancing regulation and the challenges with cooperation between the various players in the digital infrastructure ecosystem.

3. Governance limitations - the existing governance system, with the Body of European Regulators for Electronic Communications (“BEREC”) and Radio Spectrum Policy Group (“RSPG”) having only advisory roles vis-à-vis the Commission, has shown limitations regarding its contributing to the single market over the past 15 years. 

The Commission's proposed solutions

The call for evidence outlines the Commission’s plans for a DNA proposal to address the problems identified above including:

1. Simplification measures - the DNA will aim to streamline regulatory obligations through several mechanisms:

• Reduced reporting obligations: the Commission proposes reducing existing reporting obligations by up to 50% and removing unnecessary regulatory burdens, particularly for business-to-business services and IoT services;
• Legislative consolidation: the DNA could merge various directly related legislative instruments, including the EECC, BEREC Regulation, Open Internet Regulation, and Radio Spectrum Policy Programme; and
• Streamlined authorisation: a simplified authorisation regime with reduced and more harmonised common conditions could enable operators to operate cross-border more easily (noting that it is unlikely that there will be moves to adopt a one-stop-shop registration mechanism across the EU). 

2. Spectrum management reform - the Commission proposes comprehensive spectrum management reforms:

• Strengthened peer review: enhanced peer review procedures with timely spectrum authorisation based on an evolving roadmap and common procedures for national spectrum authorisation. 
• Extended licence duration: longer licence durations with easier renewals, and spectrum auction designs focused on efficiency and network deployment to facilitate early 6G roll-out. 
• Flexible authorisation: including spectrum sharing arrangements aligned with competition law principles and facilitated harmonisation requests. 
• Spectrum harmonisation: to increase EU sovereignty and address cross-border interference from third countries. 
• Satellite level playing field: establishing equal treatment for satellite constellations accessing the EU market. 

3. Level playing field initiatives - the DNA is expected to address competitive balance through:

• Enhanced cooperation: creating effective cooperation among connectivity ecosystem actors by empowering National Regulatory Authorities (NRAs) and BEREC to facilitate cooperation under specific conditions; and
• Open Internet clarification: clarifying Open Internet rules concerning innovative services through interpretative guidance whilst preserving core Open Internet principles. 

4. Access regulation modernisation - the Commission proposes significant changes to access regulation:

• Ex-ante regulation safeguards: applying ex-ante regulation only as a safeguard after assessing symmetric measures, following market review based on the existing three-criteria tests and geographic market definition, subject to Commission, BEREC, and other NRA review with Commission veto powers. 
• Harmonised access products: introducing pan-EU harmonised access products with pre-defined technical characteristics as default remedies for operators with significant market power where competition problems are identified; and
• Copper switch-off acceleration: providing a toolbox for fibre coverage and national copper switch-off plans, setting an EU-wide copper switch-off date as default with derogation mechanisms to protect end-users without adequate alternatives. 

5. Enhanced governance - To reinforce the Single Market dimension, the DNA considers enhanced EU governance with sufficient administrative and regulatory capacity through strengthened roles for BEREC, BEREC Office, and RSPG to address pan-European tasks. 

What about ‘Network Fees/Fair share’?

Among the topics reportedly under consideration in the DNA proposal concerns the controversial "network fees” or “fair share" debate between telecommunications operators and content application providers. A questionnaire reportedly distributed by consultants WIK Consult and EY on behalf of the European Commission includes questions about potentially amending Article 26 of the European Electronic Communications Code (EECC) to explicitly include IP interconnection under dispute settlement mechanisms contained in the Code. 

This development is significant as IP interconnection disputes are central to the debate regarding funding high-speed internet networks, cloud computing and virtual networks. Telecoms providers have argued that technology companies should contribute to network infrastructure costs given their substantial data traffic usage. The issue remains alive and will be something to keep an eye on as the proposals develop.

Next steps

The Commission is accepting responses to its DNA call for evidence until 11 July 2025 and in parallel is preparing three studies expected by the end of the year, covering:

1. Regulatory enablers for cross-border networks and single market completion 
2. Access Policy, including Relevant Markets Recommendation review and EECC access provisions review. In this respect, the Commission has already launched a separate consultation on the revision of the Recommendation until 17 September 2025.
3. Financing issues, including the future of Universal Service obligations

The DNA legislative proposal is then expected in Q4 2025.