New generation networks require €500 billion investments

Reaching EU connectivity objectives is estimated to require €500 billion investment over the coming decade. This money will largely have to come from private sources. However, under current investment trends, there is likely to be a €155 billion investment shortfall.

To address this investment challenge, the Commission proposes a modernisation of the current EU telecoms rules, which were last updated in 2009. The Code will stimulate competition which drives investments and strengthens the internal market and consumer rights.

New European Communications Code proposes increased competition and predictability for investments: In whichever sector they operate, investors need long-term certainty. This means a stable regulatory environment which reduces divergences between regulatory practices across the EU.

The Code will apply market regulation only where end-user interest requires it and where commercial arrangements between operators do not deliver competitive outcomes. The new Code substantially reduces regulation where rival operators co-invest in very high-capacity networks and make it easier for smaller players to be part of investment projects, thanks to the pooling of costs, the overcoming of scale barriers, etc. New rules make the investment case more predictable for "first movers" who take the risk to invest in those networks in less profitable areas, such as rural areas.

With the new Code, it is not only about competition for access to networks anymore, but also competition for investments in these networks Better use of radio frequencies which means reducing divergences between regulatory practices across the EU is particularly relevant in the area of radio spectrum, which is the key raw material for wireless communications. The Code proposes long licence durations, coupled with more stringent requirements to use spectrum effectively and efficiently.

It also proposes to coordinate basic parameters such as the timing of assignments to ensure timely release of spectrum to the EU market and more converged spectrum policies across the EU with the aim to provide full wireless coverage across the EU.

Stronger consumer protection, in areas where general consumer protection rules do not address the sector-specific needs. Updated rules make it easier to switch suppliers when consumers are signed up to bundles (packages combining internet, phone, TV, mobile, etc.) and ensuring that vulnerable groups (like the elderly, disabled and those receiving social assistance) have the right to affordable internet contracts.

A safer online environment for users and fairer rules for all players. Selected rules are extended to new online players which offer equivalent services to traditional operators, to ensure that security requirements (making sure networks and servers are secure) apply. The rules also foresee the possibility for users to reach the EU emergency number 112 via such online services in the future. This will not imply any additional costs for the users.