EU launches new initiatives to transform the EU’s connectivity sector 

This week was a big week for the telecommunications sector in Europe as the Commission presented a package of plans to boost EU connectivity and speed up 5G deployment across the block. The package is in line with EU plans under the Digital Decade, which sets the target to have all European households covered by a Gigabit network and all populated areas covered by networks of at least 5G performance by 2030. Announcing the measures on 23 February, Commissioner Breton, who is the lead Commissioner on the package, argued that given the “profound transformation” our digital space is undergoing, Europe’s connectivity sector is set to undergo a “radical transformation” and thus, the Commission is working to ensure “that Europe remains a leader in the connectivity sector”. 

Over recent years, the EU has taken significant action across various areas to improve connectivity, bringing many benefits to its citizens and economy. For instance, the EU has put an end to roaming charges, worked to improve network coverage, introduced 5G networks and has launched a WiFi4EU Initiative which funded the set-up of free Wi-Fi hotspots in local communities. 

In line with ongoing efforts to transform the EU’s connectivity sector, on 23 February, the Commission presented various new initiatives. These included a proposal for a Gigabit Infrastructure Act, a draft Gigabit Recommendation, which provides guidance to National Regulatory Authorities on the conditions of access to telecom networks of operators with great market power, and lastly, an exploratory consultation on the future of the connectivity sector and its infrastructure. 

The Gigabit Infrastructure Act includes new rules to enable faster, cheaper and a more effective rollout of Gigabit networks across the bloc. The need for more bandwidth at faster speeds has been significantly heightened in recent years given the increased uptake of advanced digital technologies. This regulation will thus, replace the Broadband Cost Reduction Directive, introduced in 2014 and address the growing demand for faster, more reliable, data-intensive connectivity. With its main objective to overcome the challenge of slow and costly deployment of the physical infrastructure sustaining Gigabit networks, the Act will reduce red tape and the costs associated with the deployment of Gigabit networks. Furthermore, all new or majorly renovated buildings will be equipped with fibre to enable the fastest connectivity services. 

Secondly, and perhaps the most controversial idea tabled by the Commission this week, which has become known as the “fair share” plan, sets out the possibility for Big Tech to pay for part of network costs of the big European telecom players, like Telefonica and Orange. Through the launch of a “broad exploratory consultation” on the future of Europe’s connectivity sector, the Commission is seeking to gather views on the changing technological and market landscape. More specifically, it seeks to identify types of infrastructure needed for Europe to keep ahead of transformative technological developments and lead its transformation. The consultation aims to better understand stakeholders’ views on how to ensure investments required to roll out the necessary infrastructure are mobilised in a timely manner, and in this context, is part of a discussion on the possible need for players benefitting from the digital transformation to contribute to investments in the sector. Announcing the consultation, Commissioner Breton noted how “high speed internet requires high investments. That is why… we are exploring the important question of who should pay for the next generation of connectivity infrastructure, including whether platforms should share the cost of investment in next generation connectivity with telco operators.” Stakeholders now have three months to contribute to the consultation.