The European Commission has proposed a Digital Networks Act (DNA) to modernise, simplify and harmonise EU rules on connectivity networks. The DNA proposal will replace the 2018 EU Electronic Communications Code. The Commission says that the current rules must be updated to help operators to invest into rolling out advanced fibre and mobile networks. High-capacity networks enable innovative tech, like AI and the cloud. The widespread availability of advanced connectivity for people and businesses across the EU is the foundation of Europe’s competitiveness.
The proposal aims to create an effective EU single market by harmonising rules and facilitating cross-border business to give operators incentives to scale up, grow and innovate. To enable this, the Digital Networks Act proposal aims to:
- facilitate companies to provide services across the EU while having to register in only one Member State;
- provide incentives to create pan-European satellite communication services by establishing an EU-level, rather than national level, spectrum authorisation framework;
- increase regulatory consistency in national spectrum authorisation, by giving operators longer spectrum licences and by making licences renewable by default to increase predictability;
- make sure that all available spectrum is being used by making spectrum sharing among operators more common (‘use it or share it’); and
- introduce a voluntary cooperation mechanism between connectivity providers and other players, such as content application and cloud providers.
Legacy copper networks do not fit the ambition of making innovative technologies widely available across the EU. The DNA introduces mandatory national transition plans to phase out copper networks and to transition to advanced networks between 2030 and 2035. Member states must present their national plans in 2029. The DNA includes consumer safeguards, such as providing clear and timely information about switch-offs and ensuring service continuity.
The Digital Networks Act modernises the regulatory framework, aiming to reduce administrative burden and reporting obligations, so that companies can focus their resources on investment and innovation. The DNA also allows more flexibility for business-to-business relations, while maintaining a high level of consumer protection.
The DNA enhances network security and resilience by limiting dependencies in the connectivity ecosystem and promoting EU-level cooperation. The proposal introduces an EU-level Preparedness plan to tackle the rising risks of crises including natural disasters and foreign interference in networks. In addition, the common mechanism for selecting pan-EU satellite communications will incorporate criteria focused on security and resilience.
The DNA maintains the principles of net neutrality. It introduces a mechanism to clarify Open Internet rules for innovative services to increase legal certainty and a voluntary ecosystem cooperation mechanism on IP interconnection, traffic efficiency, and other emerging areas.
The proposal will be presented to the European Parliament and the Council for approval.
