The Commission is expected to present, on 20 January, a proposal for a regulation on digital networks. The proposal is to be accompanied by a revision of the European Electronic Communications Code and related legal acts and, in the Commission’s view, represents an opportunity to simplify and harmonise the legal framework in order to strengthen competitiveness and promote a more integrated single market.

EU digital networks remain fragmented along national borders, preventing end users and EU operators from fully benefiting from their potential.

In particular, obstacles to cross-border operation and expansion persist, hindering the deployment of very high-capacity networks and the technological transition to cloud-based networks and services.

Two underlying causes of fragmentation into national markets are:

i) the fact that the conditions attached to the general authorisation differ between Member States; and
ii) the fact that spectrum award procedures and conditions are coordinated only through a voluntary and undocumented peer-review process, and that investments are not always sufficiently encouraged through award conditions.

In addition, growing demand for access to the EU satellite market, combined with a fragmented and non-harmonised authorisation procedure, may lead to discrimination between operators, forum shopping and obstacles to the development of cross-border satellite services, resulting in the loss of benefits in terms of increased network resilience, coverage and the provision of life-saving services.

The Commission expects this initiative to have an economic impact, as innovation and investment in advanced digital networks and services should enhance the competitiveness of the sector and of the economy as a whole, as well as economic security and resilience. Specifically, the impact of measures incentivising cross-border operations and service provision will be assessed in line with single market objectives. Simplified rules should, in particular, enable SMEs to contribute to this ecosystem.

In the field of radio spectrum, the initiative aims to improve harmonisation and efficiency through common authorisation procedures, longer licences and greater flexibility, including spectrum sharing. It also seeks to ensure a level playing field for satellite operators and to prepare for the early introduction of technologies such as 6G.

Finally, according to the Commission, the regulation will seek to ensure fair competition, clarify open internet rules and make network access regulation more predictable. It will include measures to accelerate the transition from copper to fibre and to strengthen European governance by reinforcing the role of EU bodies in consolidating the digital single market.

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