The European Commission unveiled proposals on Wednesday granting telecommunications operators unlimited radio spectrum licences whilst declining industry demands that technology giants contribute financially to broadband infrastructure costs.

The Digital Networks Act represents a partial overhaul of EU telecoms regulation, harmonising spectrum allocation rules across the bloc's 27 member states. According to Reuters, operators currently receive spectrum licences for a minimum of 20 years, but the new framework makes licences renewable by default to increase investment predictability. The Commission aims to achieve full fibre coverage across the European Union between 2030 and 2035.

"High-performance, resilient digital infrastructure is essential in strengthening Europe's leadership in innovation, competitiveness and digital sovereignty," Henna Virkkunen, the EU's technology chief, said in a statement.

Major European operators including Deutsche Telekom, Orange, Telefónica and Telecom Italia have lobbied Brussels to require technology companies to pay network fees, arguing that firms such as Google, Netflix and Meta generate substantial internet traffic. The Commission rejected mandatory contributions, instead proposing a voluntary cooperation mechanism between telecoms providers and technology giants regarding infrastructure costs.

Euractiv reported that the legislation stops short of creating a unified pan-European telecoms market despite years of political momentum. The draft avoids changes to wholesale roaming caps that would reduce barriers between national mobile markets, meaning the sector remains fragmented along country lines. However, the Act does introduce an EU-wide numbering scheme for business-to-business services and a single spectrum authorisation framework for satellite communications.

The Commission will establish spectrum licensing duration, frequency sale conditions and pricing methodology to guide national regulators during auctions. Member states may extend the 2030 copper network replacement deadline if additional transition time proves necessary.

The proposals also shift the legal basis of the 2018 European Electronic Communications Code from a directive to a regulation, eliminating countries' ability to modify rules domestically. Industry observers expect opposition from national capitals during legislative negotiations between EU countries and the European Parliament in coming months, particularly regarding spectrum harmonisation measures.

A senior Commission official told Reuters that unlimited spectrum licensing signals the telecoms sector warrants investment. The framework establishes graduated remedies that national regulators must apply to fixed-line network owners, with the Commission gaining veto powers over non-compliant regulators.

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