EC to Reform Network Rules with the Digital Networks Act

The European Commission has announced the Digital Networks Act (DNA), a new proposal aimed at modernizing and simplifying rules governing connectivity networks. It should also create the right conditions for operators to invest in fibre and mobile connectivity.

EC stated the DNA aims to create an effective EU single market by harmonizing rules and facilitating cross-border business, with several steps outlined to achieve its aims. Measures include: allowing companies to provide services across the EU after registering in only one member state; incentivising the creation of pan-European satellite communications services by establishing an EU-level spectrum authorisation framework rather than a national one; easing spectrum rules around licence length and sharing; and boosting cooperation between operators, content applications, and cloud providers.

Another major facet of the DNA proposes a mandatory national transition plan to ensure the phase out of copper networks and move to advanced networks between 2030 and 2035, with countries required to present plans in 2029. It also outlined measures to simplify regulatory frameworks and enhance network security by tackling rising risks of natural disasters and foreign intervention in networks. Henna Virkkunen, EC EVP for Tech Sovereignty, Security, and Democracy, said that high-performance, resilient digital infrastructure is essential in strengthening Europe’s leadership in innovation, competitiveness, and digital sovereignty. EC’s DNA will now be presented to the European Parliament and Council for approval.

In response to the DNA, Laszlo Toth, head of Europe at industry association the GSMA, argued Europe’s ability to compete in the digital age “will unfortunately not be turbocharged” by the proposal. “While the ambition of the approach to spectrum licensing is welcome, ultimately, this is not matched across the rest of the proposals. This would leave the connectivity industry continuing to struggle to secure the investment needed to underpin the continent’s growth, innovation, and security.”