As well as proposing updates to current legislation, the EC is consulting on the sector’s long-term outlook and how it should be funded, including whether there should be a dedicated EU-wide fund to support access to affordable broadband
Gigabit Infrastructure Act to overhaul the Broadband Cost Reduction Directive: On 23 February 2023, the EC unveiled three initiatives to make gigabit connectivity available to all citizens and businesses across the EU by 2030 (a goal outlined in the Digital Decade policy programme). The first proposed action is the Gigabit Infrastructure Act (GIA), a regulation that aims to respond to growing demands for advanced connectivity with new rules to enable faster and more cost-efficient rollouts of very-high capacity networks, or VHCNs. By simplifying the granting of permits and improving the coordination of civil works, among other things, the Act would reduce the bureaucratic burden that hampers deployments currently. It would also represent a necessary update to the 2014 Broadband Cost Reduction Directive, which, in Commissioner Thierry Breton’s view, has not been fully effective.
Gigabit Recommendation to replace the existing Access Recommendations: The second action of the EC’s connectivity push is the draft Gigabit Recommendation, which focuses on providing guidance on regulating access to the networks of operators with significant market power (SMP). It would replace the two current Access Recommendations and aims to ensure that operators can access existing infrastructure while incentivising the switch-off of legacy technologies, fostering the deployment of VHCNs and supporting the telecoms single market. Key proposals include shortening the notification period for copper decommissioning to two to three years (from five) and suggesting that NRAs consider pricing flexibility for SMP operators’ wholesale products. The draft Recommendation will not be subject to a consultation, but has been sent to the Body of European Regulators (BEREC) for an opinion ahead of its adoption. ECTA, the European Competitive Telecommunications Association, has argued that this is “undemocratic” and that the text would negatively impact competition, investment and consumer prices.
A consultation on the future of the telecoms industry: Finally, the third measure from the EC is an ‘exploratory consultation’ on how increasing demands for connectivity and technological advances may affect the future development of the telecoms sector. The 12-week consultation aims to identify the infrastructure required to lead Europe’s digital transformation, and also seeks views on how to ensure that the necessary investments are mobilised in a timely way. The consultation is therefore part of an open dialogue about the potential need for all players benefitting from the region’s digitisation to contribute to telecoms network costs – i.e. the so-called ‘fair share’ debate. The EC sees this as a complex issue that warrants a “comprehensive analysis of the underlying facts and figures” before deciding on the next steps. Within this consultation, the EC also asks about the financing of the universal service obligation (USO). Currently, the USO is financed from the public budget or by electronic communications providers through an industry fund. The EC asks for feedback on several additional options for its future financing, including a dedicated EU-wide fund to support access to affordable broadband – whether for consumers in general or in specific circumstances, such as a crisis, or to address "acute but temporary difficulties". This is particularly relevant given the ongoing cost of living crisis and provision of social tariffs and future sustainability of offering them.
