EU: Digital Networks Act 

 

The EU is calling for evidence for a proposed Digital Networks Act. 

The initiative aims at improving access to secure, fast, and reliable connectivity for the transition towards cloud-based infrastructure and Artificial Intelligence. To this end, it aims to help boost secure high-speed broadband, both fixed and wireless, and incentivise and encourage investments in digital infrastructure. It builds on the Commission’s White Paper: ‘How to master Europe’s digital infrastructure needs’ adopted on 21 February 2024. 

As stated in the European Digital Decade Policy Programme, connectivity is a key enabler of the digital transformation. The programme aims to ensure universal gigabit broadband coverage and 5G connectivity in populated areas by 2030. Robust, fast and secure networks support the development of digital skills, enable business innovation in areas such as artificial intelligence (AI) and cloud computing, and facilitate essential e-government and e-health services. They also help close the digital divide, ensuring inclusive participation and strengthening competitiveness across the Union. Connectivity therefore goes beyond mere access: it enables real-time data exchange and underpins the achievement of the EU’s broader digital objectives, contributing to a truly connected and prosperous society. 

A modern and simplified legal framework that incentivises the transition from legacy networks to fibre, high-quality 5G and future 6G networks, and cloud-based infrastructures is essential. Such a framework should also enable operators to achieve greater scale through service provision and cross-border operations. These needs were highlighted in the results of the exploratory consultation on the future of the electronic communications sector and its infrastructure (2023), in the Commission White Paper How to master Europe’s digital infrastructure needs?, and in responses to the Call for Evidence on the Digital Networks Act (2025). 

Subsequent strategic analyses, including the Letta Report, the Draghi Report and the Niinistö Report, as well as the Commission Communication Competitiveness Compass for the EU, emphasise that cutting-edge digital network infrastructure is crucial for the future competitiveness, security and social welfare of the Union. The availability of high-quality, reliable and secure connectivity for end users and key economic sectors is therefore essential. 

At the same time, the Letta and Draghi reports underline that the single market for electronic communications remains fragmented. European operators continue to face barriers to cross-border operations and scaling up, limiting their capacity to invest, innovate and compete globally. Because the current legal framework is based on a directive, it has led to significant national divergence and has not fully delivered a genuine single market. Operators face differing general authorisation conditions across Member States and a patchwork of national requirements that discourage cross-border activity, increase compliance costs and slow the deployment of new technologies. In parallel, the growing importance of performance and security requirements is driving a technological transformation in digital networks, with cloud and edge computing capabilities increasingly becoming integral components of connectivity infrastructure. The adoption of the Digital Networks Act, together with the review and evaluation of the European Electronic Communications Code and related legal acts, provides an opportunity to simplify and further harmonise the legal framework, thereby strengthening competitiveness, resilience and the integration of the single market. 

Satellite connectivity is also emerging as a key enabler of the EU’s strategic autonomy. It plays an important role in providing affordable broadband access in remote areas and in supporting services related to security, crisis management, defence and other critical applications. In a rapidly evolving technological landscape, the EU must strengthen its strategic autonomy in satellite communications, including networks and services, in order to enhance resilience and support the functioning of the single market. Harmonised EU authorisation conditions for satellite services could contribute to achieving this objective. 

At the same time, satellite connectivity must become more resilient to harmful interference affecting global navigation satellite systems (GNSS), including Galileo. The Union should also be able to respond in a concrete and operational manner to emerging security threats, including those posed by drones. 

In support of the EU’s objectives relating to consumer welfare, industrial competitiveness, security, resilience and sustainability, the Digital Networks Act aims to incentivise all market actors to innovate and invest in advanced connectivity. It also seeks to promote an integrated ecosystem of connectivity and computing infrastructures capable of supporting Europe’s ambition to become an “AI continent” and strengthening the single market.