In January, the European Commission (EC) published its long-awaited draft Digital Networks Act (DNA), which is set to overhaul the EU’s telecoms regulatory framework.
The DNA aims to create an “effective EU single market” and, in turn, support growth and the competitiveness of the EU economy. The proposals cover a wide range of areas, including at the ‘edge’ of telecoms networks. We took some time to consider both the proposals and the reactions of the key stakeholders, including BEREC.
One key area where the proposals could mark a meaningful shift towards a more integrated single market is spectrum, a critical input for mobile services. The DNA places a stronger emphasis on investment relative to revenue generation from spectrum auctions, alongside enhanced EU-level oversight.
By contrast, the core elements of fixed access regulation – the longstanding cornerstone of EU telecoms liberalisation – appear largely preserved. That said, the extent of continuity will ultimately depend on the outcome of the forthcoming review of the list of relevant markets currently subject to ex ante regulation, and whether this leads to the removal of some or all of those markets.
Beyond these areas, the DNA signals a broader push towards harmonisation (e.g. via passporting and EU-level authorisation of satellite spectrum), though the practical impact of these remains uncertain.
Whether the proposals will succeed will depend on striking the right balance between ambition and implementation. In its recently published initial assessment, BEREC, the body representing Europe’s national telecoms regulators, questioned whether the proposals have the pragmatism required for effective implementation, warning that they risk adding “…greater operational complexity, administrative burden and legal uncertainty, without offering clear benefits…” over the existing regime.
In this article we present our initial assessment of the most significant changes that the EC is proposing and consider the implications for the industry.
Click below to read the article in full.
Authors
Based in Dublin, Franz uses a combination of his modelling skills and experience in sectoral regulation to break down complex economic issues in network industries.
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