The electronic communications sector in the European Union remains largely fragmented into national markets, which—according to EU institutions—limits the scale of telecom operators’ activities and slows investment in modern infrastructure. The proposed regulation on digital networks, known as the Digital Networks Act (DNA) and adopted by the European Commission, aims to improve the legal framework governing the telecommunications market and adapt it to technological changes and the growing importance of connectivity in the economy.
“Everyone depends on telecommunications and connectivity, no matter what we do. Even companies that are not digital rely on the ability to connect their systems. We all depend on our phones. In short, it is the absolute backbone of how the economy functions,” said Michał Kobosko, Member of the European Parliament from the Renew Europe group and rapporteur of the Digital Networks Act in the European Parliament, in an interview with the Newseria news agency. He noted that European telecom operators increasingly compare their operating conditions with those of American and Chinese companies and often express concerns about the regulatory environment in Europe.
For years, the fragmentation of the telecommunications market has been identified as one of the key barriers to the development of the electronic communications sector in the European Union. Reports prepared by Enrico Letta and Mario Draghi highlight that differences in national regulations and the limited scale of operations make it difficult for telecom operators to expand across borders. This creates challenging conditions for building strong pan-European companies and reduces the ability to finance large-scale investments in modern infrastructure, including 5G networks and gigabit connectivity solutions.
The authors of these analyses emphasize that European companies compete with firms operating in much larger and more unified markets. As a result, disparities emerge in operational scale and investment capacity. According to these reports, deeper market integration and greater regulatory consistency are essential to strengthen the competitiveness of the EU telecommunications sector.
Meanwhile, a report by Sauli Niinistö on civil and military preparedness highlights the growing importance of the resilience of digital networks and the need to reduce technological dependencies, particularly in satellite communications. The document points to the necessity of strengthening crisis response capabilities and ensuring the continuity of critical digital services.
“Telecommunications law in Europe has already become somewhat outdated,” Kobosko explains. “The European Electronic Communications Code does not reflect today’s realities, such as the development of artificial intelligence, the internet and social media. All of this needs to be modernized and new aspects of telecommunications must be taken into account, especially as connectivity is increasingly linked with satellite communication. We also need to decide what to do about telecommunications spectrum auctions in Europe. Today every country handles them differently. These are enormous sums of money paid by operators—second only to the cost of telecommunications infrastructure itself.”
He added that many issues require reform, which is why the European Commission proposed the Digital Networks Act, a comprehensive legislative initiative that the European Parliament has now begun to examine.
The DNA is intended to consolidate the existing EU regulations governing the electronic communications market into a single legal framework. This includes, among others, the European Electronic Communications Code, rules concerning BEREC (the Body of European Regulators for Electronic Communications), policies on radio spectrum management, selected open internet regulations, and the ePrivacy Directive.
According to the European Commission, the new regulation is designed to create conditions for further transformation of the electronic communications market, particularly at the level of infrastructure development and the operational rules governing telecom operators. One of the key elements of the proposal is the introduction of a “single passport”, which would make it easier for companies to provide services across multiple EU countries. The regulation also proposes more consistent rules for radio spectrum management and a gradual transition away from copper networks toward modern fiber-optic infrastructure.
These changes are intended to encourage investment and accelerate the deployment of new technologies, including 5G networks and gigabit connectivity.
“In general, the European telecommunications market is well developed, but there is a need for another step—a major transformation,” Kobosko said. “That is why this new regulation has been proposed. The document itself is around 350 pages long and may even grow further, because there are so many aspects of how the telecommunications market—and indeed the entire digital ecosystem of Europe—functions.”
The European Commission argues that the regulatory changes are not only important for telecom operators but also for users of digital services. The development of modern networks and greater market integration are expected to improve service quality, expand access to new technologies, and strengthen competitive conditions across the EU.
“Most importantly, the new regulation should not lead to higher prices for telecommunications services,” Kobosko emphasized. European operators point out that they earn significantly less than companies in the United States or Asia. However, Europe takes pride in the development of its telecommunications market and in the fact that telecom services function well across the region. Roaming charges, for example, have largely been abolished—whereas just a few years ago people paid extremely high phone bills when crossing borders.
The elimination of roaming fees is often cited as a clear example of the tangible benefits that European integration has delivered to users of telecommunications services across the European Union.
