Europe Launches Digital Networks Act to Create Single Market for Telecommunications

2026-01-28 data

Brussels, Wednesday, 28 January 2026.
The European Commission’s Digital Networks Act could add €400 billion to EU GDP by consolidating four separate regulations into one framework. This legislative overhaul introduces a revolutionary ‘Single Passport’ system, allowing telecom companies to register once and operate across all 27 member states. The Act mandates a complete transition from copper to fiber networks by 2035 while establishing EU-level satellite spectrum authorization that may challenge non-European operators like SpaceX.

Commission Leadership Drives Regulatory Consolidation

The Digital Networks Act proposal was formally adopted by the European Commission on January 21, 2026 [2], marking a significant milestone in Europe’s digital infrastructure strategy. Executive Vice-President Henna Virkkunen, responsible for Tech Sovereignty, Security and Democracy, positioned the legislation as foundational to Europe’s economic future, stating that “high-performance resilient digital infrastructure is essential in strengthening Europe’s leadership in innovation, competitiveness and digital sovereignty” [1]. The DNA represents an ambitious consolidation effort, merging four separate legal acts into a single regulation: the European Electronic Communications Code, the BEREC Regulation, the Radio Spectrum Policy Programme, and core components of the Open Internet Regulation [2]. This consolidation approach aims to address the fragmentation that has historically characterized Europe’s telecommunications sector, creating conditions for operators to scale up and operate seamlessly across borders [3].

Single Passport System Transforms Cross-Border Operations

The centerpiece of the DNA framework is the introduction of a revolutionary “Single Passport” authorization system that fundamentally alters how telecommunications providers operate across the European Union [1][2][6]. Under this mechanism, companies need only register and receive authorization in one member state to conduct business throughout the entire 27-nation bloc [2]. This represents a dramatic departure from current practices, where operators must navigate separate regulatory frameworks in each country they wish to serve. The system extends beyond terrestrial networks to include EU-level satellite spectrum authorization [2][6], a provision that could create more stringent conditions for non-European satellite service operators, potentially affecting companies like SpaceX’s Starlink service [7]. The harmonized approach is designed to reduce compliance costs and administrative burden for companies operating in multiple EU markets while promoting greater investment in digital infrastructure.

Mandatory Fiber Transition Sets 2035 Deadline

The DNA establishes a definitive timeline for Europe’s telecommunications infrastructure modernization, mandating that the transition from copper networks to full fiber connectivity must be completed by 2035 [2][7]. This requirement introduces mandatory national transition plans for member states to ensure a sustainable phase-out of legacy copper infrastructure [2]. The fiber transition mandate aligns with the Commission’s broader strategy to create the foundation for advanced technologies, including artificial intelligence and cloud computing services [3]. Virkkunen emphasized the practical implications of enhanced connectivity, noting that “advanced and accessible connectivity will allow start-ups to harness the potential of AI, enable doctors to care for patients remotely, quickly and safely” [1]. The copper-to-fiber migration represents one of the most concrete and time-bound commitments within the DNA framework, requiring substantial coordination between national governments and private sector operators.

Economic Impact and Implementation Challenges

The European Commission projects that full deployment of the Digital Networks Act could contribute up to €400 billion to the EU’s gross domestic product while simultaneously reducing emissions through more energy-efficient infrastructure [4]. However, the proposal faces significant implementation challenges and has already generated controversy around network neutrality provisions. Digital rights organization epicenter.works criticized the DNA for “a drastic abandonment of core protections and a gutting of the net neutrality framework” [4], specifically noting that the Act repeals key articles from the Open Internet Regulation while only partially reintegrating net neutrality protections [4]. The DNA proposal will now proceed to the European Parliament and the Council for approval [8], where these concerns are likely to receive extensive scrutiny. Despite the ambitious economic projections, some analysts question whether the framework will meaningfully reduce Europe’s dependence on non-EU digital infrastructure, with Atlantic Council senior fellow Konstantinos Komaitis arguing that the DNA “does not reduce Europe’s reliance on US digital infrastructure, nor does it meaningfully change it” [4].

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Digital Networks EU Regulation