European Commission Publishes Draft Digital Networks Act, Reigniting Telecom Debates

Web Reporter
4 Min Read

The European Commission has released a draft of the Digital Networks Act (DNA), a key legislative initiative that will replace the 2018 European Electronic Communications Code (EECC). The EECC, adopted in 2018, was only fully transposed into national laws by 2024, six years later than planned.

The DNA sets out to modernise Europe’s telecom rules, but it also reopens old debates over spectrum control, network fees, and the costly transition from copper to fibre. “The Commission’s draft Digital Networks Act would replace the 2018 EECC and reopen old fights: less national control over spectrum, a costly copper switch-off by 2035, and a ‘voluntary’ conciliation backdoor that could revive de facto network fees,” the proposal states.

Under the DNA, Member States will have less autonomy over radio spectrum, a scarce public resource traditionally managed at the national level. While current rules allow countries to set licence conditions, award auctions, and control spectrum allocation, the DNA promotes coordination at the EU level and encourages shared spectrum use through a “use it or share it” approach. The Commission argues that “national borders are increasingly irrelevant in determining optimal radio spectrum use,” but national authorities may resist ceding such control.

The draft also proposes an EU-wide satellite spectrum authorisation, making it easier for European satellite operators to operate across borders while tightening rules for non-EU companies. Companies such as SpaceX could face more hurdles securing approval at the EU level than through individual Member States.

The DNA signals a shift toward treating telecom under general competition law rather than sector-specific ex ante regulation. Telecom mergers could become easier, and the overall regulatory burden may decrease as the sector moves toward standard competition oversight.

A contentious element of the proposal involves network fees, often referred to as “fair share” charges on content providers. Telecom operators have long pushed for fees on companies generating high traffic, arguing that this compensates for network use. Critics, including civil society and consumer groups, warn that such fees could be passed on to consumers and undermine an open internet.

The DNA frames these fees as a “new IP interconnection dispute resolution mechanism,” managed by BEREC (the Body of European Regulators for Electronic Communications). Articles 191–193 outline a process where national regulators oversee disputes and offer options for “effective cooperation” if parties cannot agree. The language is vague, leaving open the possibility that de facto network fees could be imposed without full political approval.

The act also includes a deadline for switching from copper to fibre networks by 2035, a move that will require significant investment from operators and national authorities.

Industry and consumer groups are already preparing for extensive negotiations as the DNA moves through the EU legislative process. Analysts predict that achieving consensus will be challenging, given the potential impact on national sovereignty, network economics, and the future of internet regulation in Europe.

TAGGED:
Share This Article