Europe Unveils Major Telecom Overhaul That Could Reshape Digital Infrastructure Funding

2026-02-05 data

Brussels, Thursday, 5 February 2026.
The European Commission’s Digital Networks Act marks the biggest telecom reform since 2018, introducing a controversial voluntary dispute mechanism that critics call a ‘backdoor’ to network fees on tech giants like Google and Netflix. The legislation mandates copper network shutdown by 2035, creates EU-wide satellite licensing, and establishes a single passport system for operators across member states. While aimed at reducing foreign tech dependence and accelerating fiber deployment, the reform has sparked industry division over implementation costs and regulatory complexity, potentially transforming how European digital infrastructure is funded and developed.

A Comprehensive Regulatory Overhaul

The Digital Networks Act represents a fundamental restructuring of European telecommunications regulation, replacing the fragmented framework established by the 2018 European Electronic Communications Code (EECC) [1][2]. The DNA proposal, formally unveiled on January 21, 2026, consolidates existing EU laws including the BEREC Regulation and parts of the Open Internet Regulation and e-Privacy Directive into a single, harmonized regulatory framework [2]. This comprehensive approach aims to establish what the Commission describes as a “modern and simplified legal framework that incentivises the transition from legacy networks to fibre, high quality 5G and 6G networks, and cloud-based infrastructures” [2]. The legislation seeks to address Europe’s struggle with regulatory fragmentation that has hindered the creation of cutting-edge networks comparable to those in the United States or Asia [3].

Single Passport System and Cross-Border Operations

Central to the DNA’s modernization efforts is the introduction of a “Single Passport” procedure that fundamentally changes how telecommunications operators can expand across the European Union [2][4]. Under Article 10 of the DNA, international providers can submit a single notification to operate in multiple EU Member States, eliminating the current requirement for separate national authorizations [4]. This system establishes a single list of conditions for authorizations, including requirements to ensure service security and resilience, preparing for disruptions, and complying with cybersecurity rules like the NIS2 Directive [2]. A new Office for Digital Networks (ODN) will maintain a central database of all notifications, creating unprecedented coordination in European telecommunications governance [4]. The harmonized authorization framework extends to satellite networks, where operators will benefit from a single EU-level license, eliminating the need for separate national authorizations [5].

Mandatory Copper Network Retirement and Fiber Transition

One of the DNA’s most significant technical requirements mandates the complete retirement of copper wire networks by December 31, 2035 [2][4]. This deadline comes with specific conditions: areas must achieve at least 95% fiber network coverage and offer affordable retail alternatives before copper networks can be switched off [4]. Network operators must create and submit detailed transition plans to national competent authorities for switching off copper networks [2]. The FTTH Council Europe has welcomed this copper switch-off provision, stating it “strikes the right balance between the need to incentivise the take-up of future-proof networks, the necessity to consider national specificities, and avoiding unintended consequences for consumers” [6]. The organization views the copper switch-off as “an important driver for investments” that will contribute positively to EU competitiveness and support the digital transition [6]. Implementation will follow a phased approach, with ‘Copper Switch-Off Areas’ to be identified by mid-2028 and fiber transition plans delivered by mid-2029 [5].

The Network Fees Controversy and Industry Division

The most contentious aspect of the DNA involves the handling of network infrastructure costs, particularly whether major content providers should contribute to network maintenance and development [1]. After intense transatlantic pressure, the Commission stepped back from imposing direct “network fees” on tech giants like Google and Netflix [1]. Instead, the DNA proposes a voluntary conciliation mechanism under Articles 191-193 to settle disputes between telecommunications operators and major traffic generators [1][2]. This approach has satisfied neither side: telecom operators dismiss it as a “continuation of the status quo,” while the tech industry criticizes it as a “backdoor” to future fee imposition [1]. The Computer & Communications Industry Association specifically warned that the mechanism “introduces backdoor to resurrect network fees” [1]. Under Article 192, when a telecommunications company requests intervention, a meeting will be held under national regulatory authorities’ oversight, who must inform BEREC within one week, followed by a two-month period for BEREC to issue an opinion and a three-month timeline for parties to reconvene with national authority recommendations [2].

Centralized Governance and Strategic Autonomy

The DNA fundamentally transforms European telecommunications governance by centralizing crisis preparedness and strategic planning under BEREC’s expanded authority [3][4]. BEREC will adopt a “Union Preparedness Plan for Digital Infrastructures” within twelve months of the Act’s entry into force, tasked with assessing network architecture, capacities, functionalities, and identifying potential failures [3]. This plan represents a shift toward treating networks as “a condition for the existence of the economy, the State, and collective security” rather than merely a services market [3]. The legislation also addresses strategic dependencies on foreign technology providers through enhanced security requirements and preference for European-origin technology, potentially creating tougher conditions for non-EU satellite operators like SpaceX [2]. Tech Commissioner Henna Virkkunen emphasized this strategic dimension, stating that “European innovation starts with a truly connected Europe” and that “high-performance resilient digital infrastructure is essential in strengthening Europe’s leadership in innovation, competitiveness and digital sovereignty” [7]. The DNA also strengthens EU-level involvement through the newly-established Office for Digital Networks (ODN) and the Radio Spectrum Policy Body (RSPB) [2], creating a more centralized approach to telecommunications governance across the 27-member bloc.

Bronnen

digital infrastructure telecommunications reform