EU countries split over revamping telecom markets

EU countries remain divided over European Commission plans to overhaul telecom rules to improve connectivity, according to minutes of a telecom working party seen by Euronews, which suggest levels of investment in the sector remain a source of contention.

The Commission launched a series of discussions in February designed to address problems with connectivity, spectrum and investment, with a view to the adoption of new or updated legislation in the next mandate.

Representatives of national governments aim to land on a common position on a Commission white paper on connectivity by December. Hungary, which is chairing the talks until the end of this year, presented a second draft text earlier this week. 

Member states have been sceptical of the proposals and questioned their necessity.

Despite work by the Hungarians on a compromise text, some issues remain unresolved, including the question whether consolidation of national markets will lead to more investment, and countries including Romania and Portugal have suggested removing this passage from the proposal. 

The Dutch delegation suggested keeping a legal framework that will allow national supervisors to intervene in domestic telecom markets on the basis of their local regulation, and this was supported by Belgium, Germany, Ireland, Malta and Sweden. 

France, Greece and Luxembourg have also questioned the implications of the proposed introduction of investments in sustainable communication networks.

Fair share watered down

The Commission white paper suggested that the future of digital infrastructure needs to be reassessed. This paves the way for a new telecom law for the next mandate: the Digital Networks Act (DNA), set to be published early 2025.

The executive wants to address problems with connectivity, spectrum and investment, as new technological applications require more and more data processing and storage.

The initial idea of a so-called “fair-share” option – which would see large tech companies pay for telecom infrastructure – was already watered down in a public consultation which spelled out several policy options. 

Options could include broadening the scope of today’s EU telecoms rules, which safeguard network access and competition, to “ensure a regulatory playing field” with equal rights for all companies active in the sector.

Hungary asked the countries to submit potential red lines and major roadblocks by 22 October, the third compromise text will then be discussed on 12 November.

Henna Virkkunen, the incoming commissioner for technology, has been tasked with “working on a new Digital Networks Act, to help boost secure high-speed broadband, both fixed and wireless”, according to her mission letter. With the new Commission expected to start work by 1 December, publication of a plan at the beginning of 2025 seems doubtful.

The timing of the DNA coming next year is also complicated by the fact that the European Electronic Communications Code (EECC),  which regulates telecom networks and services, is also up for review next year.