Legislation to boost high-speed broadband rollout has been criticised by industry for being watered down and lacking ambition
Gigabit Infrastructure Act seeks to reduce rollout costs and red tape
On 6 February 2024, EU institutions reached political agreement on the proposed Gigabit Infrastructure Act (GIA). The provisional accord between MEPs and the Belgian Presidency of the Council – which still needs formal approval by both co-legislators in order to become law – aims to lower the costs of, and stimulate investment in, deploying gigabit-capable networks, which it is hoped will foster economic growth and innovation across Europe. The draft legislation will also simplify and expedite administrative procedures for granting permits, and reduce bureaucratic hurdles for operators and national administrations, thereby making the deployment process smoother and faster.
EU institutions reach agreement on network deployment rules and retail price caps
During the trilogue phase, MEPs and the Council agreed to a "tacit approval" principle, where permission to install infrastructure would be given if the administrative authority does not respond to a request within a four-month period. Negotiations will also establish a path towards the abolition of fees for end users for intra-EU calls and SMS. By 2029, there should be no differentiation of retail prices solely based on the fact that calls are originated or terminated in different Member States – though this is subject to rules to be adopted by the EC. The agreed text also extends the existing price caps on intra-EU calls, which were to expire in May 2024, until 2032.
Too little, too late for industry?
According to Alin Mituța (MEP and GIA rapporteur), the “landmark deal” establishes a common EU approach to delivering high-speed internet access to every EU citizen, bridging the connectivity gap between urban and rural areas. The Council was similarly complimentary about the potential of the GIA, which will replace the 2014 Broadband Cost Reduction Directive, or BCRD. However, industry appears underwhelmed. Operator associations ECTA and ETNO both acknowledged the efforts of the EC, Parliament and Council in getting to this point, but felt the agreed text lacked ambition. ECTA stated that political agreement on the act has come too late, while ETNO lamented the dilution of crucial measures to reduce timing and cost of network rollouts.
Adoption of the Gigabit Recommendation flies somewhat under the radar
To less fanfare, the EC has also adopted a new Gigabit Recommendation, which focuses on providing guidance on regulating access to the networks of operators with significant market power (SMP). It had appeared that this instrument could prove particularly controversial, with ECTA raising concerns that the text would negatively impact competition, investment and consumer prices. A draft was sent to the Body of European Regulators for Electronic Communications (BEREC) for its opinion, which also warned that the initial draft risked premature deregulation and a higher administrative burden for national regulators. Yet with no public consultation necessary and absent any further regulatory hurdles to clear, the EC has been able to adopt a final version, replacing the two previous Access Recommendations from 2010 and 2014, respectively.
