EC Starts Consultation on Network Cost and Gigabit Connectivity

The European Commission has opened consultation that could lead to third parties contributing to the cost of network infrastructure. The EC also detailed two other initiatives designed to boost access to the latest generation of fixed and mobile technology.

All moves come under the wider policy of making gigabit connectivity available to businesses and citizens across the European Union by 2030. As part of this, the EC is conducting an exploratory consultation on a range of issues including the potential need for all players benefitting from the digital transformation to fairly contribute to the investments in connectivity infrastructure. The EC noted it was a complex issue that requires a comprehensive analysis of the underlying facts and figures, before deciding on the need for further action. It added it is strongly committed to protecting a neutral and open internet.

The issue of getting large technology companies to contribute to the cost of network rollouts is one set to be fiercely contested between the mobile industry and those potentially on the hook to contribute. Responding to the opening of the consultation, GSMA chief regulatory officer John Giusti said it commended the EC’s leadership in initiating an honest discussion about the role that companies benefitting the most from the use of European networks should play in contributing to infrastructure investment in the region. “We believe it is only fair that the companies generating the largest amounts of traffic on Europe’s networks should contribute to the required infrastructure investment,“ he added. “That burden should not fall entirely on the backs of European consumers and businesses.“ Interested parties have a deadline of 19 May to submit comments.

The Gigabit Infrastructure Act is the latest proposed legislation designed to cut red tape and costs for installing physical infrastructure for communication networks. Included in the EC’s recommendations are rules designed to improve the co-ordination of civil works between operators. The proposed act has to go through the European Parliament and Council of member states before being applied. The third EC move, a draft Gigabit Recommendation document, target national regulators and, if approved, guides conditions of access to networks owned by operators with significant market power. It aims to incentivize faster switch-off of legacy technology and accelerate deployment of the latest generations. The proposal is the subject of a two-month consultation from the Body of European Regulators for Electronic Communications.