The European Commission has proposed a new Digital Networks Act to modernize and harmonize EU rules for fixed and mobile connectivity. Part of the EU’s digital competitiveness agenda, the initiative aims to encourage investment in high-capacity networks that underpin economic growth, innovation, and Europe’s strategic digital autonomy.
The initiative, announced in Brussels and now moving into the legislative process, responds to growing concerns that fragmented national regulations and legacy infrastructure are slowing Europe’s ability to compete globally in areas such as cloud computing, artificial intelligence, and advanced digital services.
At the heart of the Digital Networks Act is the recognition that Europe’s future competitiveness depends on widespread access to enhanced connectivity for both citizens and businesses. High-performance fiber and mobile networks are increasingly seen not as optional infrastructure, but as critical enablers of data-driven industries and cross-border digital markets. The Commission argues that existing regulatory frameworks, many of which were designed for an earlier phase of telecommunications development, no longer provide the incentives or predictability needed for large-scale investment in next-generation networks.
The proposal aims to create a more efficient EU single market for connectivity by harmonizing rules and reducing barriers to cross-border operations. Under the Digital Networks Act, companies would be able to offer services across the EU without having to register separately in multiple Member States, a change intended to reduce administrative overhead and accelerate market expansion. The Commission also proposes to support the emergence of pan-European satellite communication services by shifting spectrum authorization for these services to the EU level, rather than leaving it entirely to national authorities.
Spectrum policy is another major focus of the reform. The Digital Networks Act seeks to improve regulatory consistency by encouraging longer spectrum license durations and making renewals the default option, providing operators with greater predictability for long-term investment planning. At the same time, the proposal introduces a stronger emphasis on efficient spectrum use, including measures that promote spectrum sharing under a “use it or share it” principle. According to the Commission, this approach would help ensure that scarce spectrum resources are fully utilized while maintaining competition.
A significant structural change outlined in the proposal concerns the gradual phase-out of legacy copper networks. The Commission argues that maintaining outdated copper infrastructure is incompatible with the goal of making cutting-edge digital services widely accessible. To address this, the Digital Networks Act would require Member States to develop national transition plans for moving from copper to advanced networks between 2030 and 2035. These plans must be submitted by 2029 and would be accompanied by safeguards designed to protect consumers, including guarantees of service continuity and clear, timely communication about network switch-offs.
Beyond infrastructure and market structure, the Digital Networks Act also addresses security and resilience. The proposal introduces an EU-level preparedness strategy aimed at mitigating risks from natural disasters, cyber threats, and foreign interference in connectivity networks. Security and resilience considerations would also be integrated into the criteria used for selecting pan-European satellite communication solutions, reflecting growing concerns about the strategic importance of digital infrastructure.
Importantly, the Commission stresses that the Digital Networks Act fully upholds the EU’s net neutrality principles. Rather than weakening open internet rules, the proposal introduces a voluntary cooperation mechanism that would allow connectivity providers to work with content, application, and cloud service providers on issues such as IP traffic efficiency. The intention is to foster innovation and legal clarity without undermining established protections for open internet access.
If adopted, the Digital Networks Act would replace the EU Electronic Communications Code of 2018, marking a significant shift in how Europe regulates its digital connectivity landscape. The proposal will now be examined by the European Parliament and the Council, where it is expected to spark debate over investment incentives, national sovereignty in spectrum management, and the balance between harmonization and flexibility.
Executive Insights FAQ
Why is the EU proposing the Digital Networks Act now?
The proposal responds to rising demand for high-capacity networks and concerns that fragmented regulation is limiting investment and competitiveness.
How would the Digital Networks Act affect cross-border connectivity services?
It would allow operators to provide services EU-wide without registering separately in each Member State, reducing administrative complexity.
What changes does the proposal introduce for spectrum management?
It promotes longer, renewable licenses, greater consistency across countries, and increased spectrum sharing to maximize efficient use.
What is the timeline for phasing out copper networks?
Member States would plan transitions between 2030 and 2035, with national plans due by 2029 and consumer protections in place.
Does the Digital Networks Act change EU net neutrality rules?
No, it maintains full net neutrality while offering voluntary collaboration mechanisms to support innovation and legal clarity.
