The European Commission is working on a radical overhaul of telecoms rules that could give telecom providers indefinite access to radio spectrum. With this measure, Brussels aims to stimulate investment in digital infrastructure and accelerate the rollout of networks within the European Union.
The proposal, seen by Reuters, is part of the upcoming Digital Networks Act, which will be presented on January 20 by EU Commissioner for Technology Henna Virkkunen. Negotiations with member states and the European Parliament will follow in the coming months, after which the bill can be finalized.
In the draft document, the Commission states that long-term, in principle unlimited rights of use for radio spectrum provide greater certainty for investment decisions. This would make telecom companies more willing to invest heavily in new networks and services. In addition, this approach should contribute to more stable market conditions for the trading and leasing of spectrum.
According to the Commission, an unlimited term could also promote the development of a mature secondary market, in which radio spectrum can be resold or leased more easily. This should increase the efficiency of spectrum use and stimulate innovation.
Mandatory network rollout
At the same time, the EU wants to prevent valuable spectrum from remaining unused. To this end, conditions are being considered that would require companies to actively use or share the spectrum, with clear obligations regarding network rollout. This is to prevent spectrum from being bought up and then blocked from competitors.
The proposal also includes stricter supervisory measures for large telecom players. Companies that have a dominant position in one market may also be granted that status in closely related markets. In that case, additional obligations may apply, such as transparency requirements, equal treatment of competitors, and possibly also price regulation or separate accounting.
With the Digital Networks Act, the European Commission is seeking to strengthen Europe’s fragmented telecommunications market and enable it to compete more effectively with players from the United States and Asia. Whether unlimited spectrum rights are the right tool for this will be the subject of intense political debate in the coming months.