Europe Abandons Controversial Network Fees in New Digital Networks Act

2026-01-21 data

Brussels, Wednesday, 21 January 2026.
The European Commission’s Digital Networks Act eliminates the widely debated ‘fair share’ requirement that would have forced tech giants like Netflix and Google to pay European telecom operators for network infrastructure costs. Instead, the legislation focuses on harmonizing spectrum allocation across EU member states and streamlining cross-border digital services. The act transforms from directive to regulation, giving Brussels more control over national telecom policies while extending copper network phase-out deadlines to 2035. This represents a significant victory for content providers and a setback for telecom operators seeking additional revenue streams from high-traffic platforms.

Major Shift in EU Telecom Policy

The European Commission unveiled the Digital Networks Act on Wednesday, January 8, 2026, marking a decisive end to years of contentious debate over network usage fees [2]. The 297-page DNA draft contains little mention of the fair share concept that would have required large traffic-generating platforms like Netflix and Google to contribute to network infrastructure costs [6]. This outcome represents a stark contrast to telecom operators’ longstanding position, with Telefónica stating in 2023 that “telecom operators are stuck in [a] one-sided market model, getting payments for the use of the networks only from end customers and not from content providers” [6]. The omission aligns with commitments made in a White House fact sheet from summer 2025, where “the U.S and the European Union intend to address unjustified digital trade barriers. In that respect, the EU confirms that it will not adopt or maintain network usage fees” [6].

Industry Reactions and Concerns

Industry analyst Dean Bubley welcomed the development, noting that “the ridiculous and ironically misnamed ‘fair share’ internet traffic tax seems to have been sidelined, although I’m sure there’s some wiggle room in the detail for another decade of the same nonsense wearing a different hat” [6]. However, the Computer & Communications Industry Association (CCIA Europe) expressed concerns about alternative mechanisms embedded within the legislation. The organization’s Senior Policy Manager for Connectivity and Competition, Maria Teresa Stecher, warned that “this is not a ‘voluntary conciliation’ procedure, but one that will create new disputes” [4]. Internet policy analyst Konstantinos Komaitis cautioned that “although the DNA avoids explicit references to ‘fair share’ or mandatory network contributions from content and application providers (CAPs), it embeds the underlying logic by treating traffic asymmetry as an economic imbalance” [6].

Spectrum Harmonization and EU Control

The DNA introduces significant changes to spectrum management across the 27 EU member states, aiming to reduce the current fragmentation where opposition has blocked unified approaches to managing 4G, 5G, and Wi-Fi networks [2]. The legislation establishes a single EU spectrum authorization framework for satellite communications and proposes spectrum harmonization measures intended to reduce costs for operators acquiring bandwidth, as spectrum is currently assigned through national auctions [2]. Under the new framework, the European Commission assumes veto power over national spectrum management decisions through Article 31 of the DNA [8]. Spectrum licenses would become indefinite but revocable, with Member States conducting reviews and possible revocations every five years [8]. The Commission also proposes EU-wide numbering schemes to support pan-European business-to-business telecoms services [2].

Extended Copper Network Phase-Out Timeline

The DNA extends the deadline for mandatory copper network switch-off from 2030 to 2035, contingent on achieving 95% fiber coverage and maintaining affordable retail connectivity [6][8]. The legislation specifies that the mandatory copper switch-off will apply from January 1, 2036, with the final sunset by December 31, 2035, subject to exceptions in areas lacking adequate fiber infrastructure or competitive pricing [8]. Current fiber deployment across EU member states shows significant disparities, with Portugal achieving 97% coverage and Sweden reaching 95%, while Greece, Czechia, and Germany lag significantly at just 5% each [6]. After 2035, “the conditions will not play a role anymore, and member states will be required to mandate the switch-off in all the remaining copper switch-off areas with some exceptions” [6]. This extension provides additional time for lagging member states to develop fiber infrastructure, though S&P Global warns of a copper supply deficit of 10 million metric tons by 2040 [6].

Bronnen

Digital Networks Act EU connectivity regulation