The European Commission today approved the long-awaited Digital Networks Act (DNA), a major overhaul of EU telecom rules aimed at modernising connectivity and fostering investment in fibre and 5G networks.
The legislation, which replaces the old European Electronic Communications Code, is intended to create a single market for digital infrastructure and strengthen Europe’s competitiveness in the digital economy.
A central feature of the DNA is the extension of radio spectrum licences. Giving operators longer licences and making them renewable by default, the EU executive said, will increase predictability and consistency across the bloc.
Currently, spectrum licences are granted for a minimum of 20 years. The Commission said the change will support full fibre coverage across the EU between 2030 and 2035, although governments may extend the transition if necessary.
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said: “High-performance, resilient digital infrastructure is essential in strengthening Europe’s leadership in innovation, competitiveness and digital sovereignty. Our goal is a digital environment where new technologies are readily available, affordable, and grounded in fair, trustworthy rules that benefit people.”
However, the new legislation has not been universally welcomed.
Telecom operators, including Deutsche Telekom, Orange, Telefonica and Telecom Italia, have long argued that Big Tech should pay a network fee because they account for a large share of internet traffic. However, the DNA does not introduce a mandatory charge. Instead, it establishes a voluntary cooperation mechanism between operators and major tech platforms, such as Google, Netflix, and Meta, to help cover the cost of rolling out digital infrastructure.
Industry groups also warned the legislation does not go far enough.
Laszlo Toth, Head of Europe at the GSMA, the industry body which lobbies on behalf of the mobile communications industry, welcomed moves by the EC to create more investment certainty for mobile operators by addressing the problem of spectrum licensing. However, he added that the DNA did not do enough to create a more investment-friendly regulatory environment.
“What was promised as a bold piece of legislation will in its current form not do enough to alter the status quo and will mean Europe continues to fall behind global leaders,” he says. “Aside from far-reaching proposals on radio spectrum policy, it is now clear that many of the reforms originally promised have unfortunately been left on the table, and that the DNA proposal represents regulatory evolution where revolution is required.
“A key priority for the Commission over the past 12 months has been ‘simplification’ but we now face the prospect of even more sector-specific rules, additional administrative bodies and reporting obligations, and the retention of unnecessary, redundant or duplicative elements including Consumer Protection and rules stemming from a largely outdated ePrivacy Directive. This is not simplification, it is complexification.”
He added that the DNA’s new voluntary conciliation and facilitation mechanism for network operators and large traffic generators was “unclear” while the lack of a more binding conflict resolution mechanism and the missing shift from sector-specific to horizontal regulation “perpetuates an unlevel playing field which is detrimental to the telecoms industry and the overall competitiveness of the EU.”
Matt Cooke, EMEA Cybersecurity Strategist at Proofpoint pointed to the fact that for the first time the Commission is calling for coordinated EU action against the “human risk” of digital networks—specifically phishing, smishing, and CLI spoofing.
“The Digital Networks Act’s commitment to protecting end-users highlights a critical shift: digital resilience is now defined by the human layer. Adversaries are weaponising AI to craft social engineering attacks so persuasive they bypass traditional vigilance, directly targeting the individuals who power our essential services,” he said. “Achieving the ‘trusted digital ecosystem’ the EU now demands is a board-level imperative, not just an IT task. As seen in recent outages, the gap between a successful phishing attempt and total operational paralysis is dangerously small. To meet the DNA’s mandates and safeguard both commercial viability and brand reputation, organisations must prioritise the human element – deploying integrated defences that empower people to resist the relentless wave of AI-driven deception.”
Legal experts also highlighted the challenges ahead.
Fritz-Ulli Pieper, Salaried Partner at Taylor Wessing, highlighted the complexity telco companies will face in 2026: “This year will be pivotal for telecommunications law in the EU and Germany. Multiple regulatory initiatives, including the DNA, the Gigabit Infrastructure Act, and the TKG Amendment Act, are reaching the stage of practical application or political decision-making,” he said.
“For operators, authorities, and investors, this is not just a matter of compliance: they will need to review existing obligations, implement new requirements, and make strategic decisions that could affect investment and rollout plans for years to come. The DNA in particular introduces both opportunities and uncertainties. While spectrum reforms and harmonised rules could provide predictability, voluntary mechanisms for Big Tech cooperation and other unresolved provisions mean that operators will need to carefully navigate regulatory, technical, and commercial risks. The year ahead will show whether the legislation delivers its promise or adds further complexity to Europe’s telecom landscape.”
The legislation will now be debated by the European Parliament and EU Member States, with its success dependent on balancing regulatory certainty, investment incentives, and industry competitiveness. The Commission’s proposal, part of a broader revamp of telecom rules, must still be agreed to by EU Member States and the European Parliament before it can be implemented.
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