Telecom Infrastructure Partners, as a well-established company with many years of experience in the telecommunications market, would like to share our analysis and interpretation of the comprehensive study “How to master Europe’s digital infrastructure needs?”. The document examines in detail the numerous challenges that Europe currently faces in terms of developing future communications networks.
The report not only identifies these challenges, but also presents possible scenarios to effectively address them. It identifies courses of action that can attract investment, foster innovation, enhance security, and move toward a true Digital Single Market. In our analysis, as digital infrastructure experts, we would like to highlight the key findings and recommendations of this study, which are essential to ensuring Europe’s leadership in the global digital landscape.
A key element in achieving these goals is the education of entities and property owners with telecommunications infrastructure. Informed decision-making on long-term investments is essential to maximize the benefits of modern technology. A proper understanding of technological trends, potential gains and risks associated with investments in digital infrastructure can significantly influence the development and modernization of communications networks.
Therefore, as a company, we place a strong emphasis on informing and supporting property owners and other stakeholders in making informed investment decisions. We believe that by educating and providing reliable information, we can contribute to a more integrated, secure and innovative digital infrastructure in Europe. We invite you to read and reflect on the future of Europe’s digital infrastructure.
Advanced Digital Network Infrastructure: The Foundation for a Thriving Digital Economy and Society
In a rapidly evolving digital landscape, advanced digital network infrastructures are key to supporting a robust digital economy and society. Secure and sustainable digital infrastructures are one of the four focal points of the EU’s Digital Decade 2030 Policy Agenda, a priority for the current Commission. This initiative reflects the aspirations of citizens, who expressed a number of digitization-related proposals through the Conference on the Future of Europe.
Without advanced digital network infrastructures, the transformative potential of modern applications remains untapped, leaving consumers without the many benefits offered by modern technology. These infrastructures enable key services such as telemedicine, precision agriculture and smart logistics. For example, only with high-performance digital networks can doctors provide fast and safe remote medical treatment, drones can optimize agricultural practices, and connected sensors can provide real-time monitoring of food freshness during storage and transportation.
Across sectors, companies rely on advanced connectivity and computing infrastructures for real-time data processing, which is crucial for applications such as the Internet of Things (IoT), autonomous vehicles and smart grids. These technologies require minimal latency for efficient and cost-effective operation, which is crucial for real-time monitoring, predictive maintenance and automation.
Advanced digital network infrastructures are the backbone of transformative technologies such as Artificial Intelligence (AI), Virtual Worlds and Web 4.0. They are solving societal challenges in energy, transportation and healthcare, while stimulating innovation in creative industries. The future competitiveness of Europe’s economy depends on these infrastructures to support €1 to €2 trillion in global GDP growth. Broadband development, both fixed and mobile, is closely linked to economic development, with higher speeds and advanced mobile networks positively impacting GDP.
The digital landscape is seeing a convergence of communications infrastructure with cloud and edge computing capabilities. This trend requires the electronic communications sector to expand beyond traditional consumer online marketplaces to digital services critical to the Industrial Internet of Things- IIoT. The sector is also undergoing a technological transformation toward software- and cloud-based networks and open architectures.
However, this convergence brings risks, such as potential bottlenecks and dependencies in cloud infrastructure and chip platforms. To minimize these risks and ensure economic security, innovation within the Union must be driven by industry, leveraging Europe’s current strengths in the network equipment supply market.
Despite progress, Europe’s communications infrastructure faces significant challenges. The 2023 State of the Digital Decade report points to limited fiber coverage (56% of households, 41% in rural areas) and delays in deploying standalone 5G networks. Achieving the 2030 goal of 100% fiber coverage seems uncertain, with projections not exceeding 80% by 2028. By comparison, South Korea and Japan have achieved near-universal fiber coverage through clear, strategic initiatives.
Deployment of autonomous 5G networks, essential for industrial applications requiring high reliability and low latency, is also lagging behind. Current deployments are limited, with only a handful of member states having deployed the architecture in selected urban areas. Deployment of the critical 3.6 GHz band, needed to achieve higher speeds and greater capacity, is only 41% of the population.
While satellite broadband can bridge the digital divide in rural areas, its performance is not yet able to replace terrestrial networks. Network edge computing, essential for time-critical and IoT applications, is still in its early stages in Europe. The Digital Decade Policy Agenda calls for the deployment of 10,000 climate-neutral and highly secure edge nodes by 2030. However, without significant investment and incentives, achieving these goals remains unlikely.
The EU’s future competitiveness and economic growth depend on advanced, secure digital infrastructures. A modern regulatory framework must encourage the transition from legacy networks to fiber, the rollout of 5G and other wireless networks, and the scaling of operators within the single market. Emerging technologies such as quantum communications must also be taken into account to ensure that Europe achieves its 2030 digital goals and remains internationally competitive.
Recent geopolitical events underscore the importance of secure, resilient infrastructures. An EU-wide strategic approach to digital infrastructure security and resilience is essential, building on existing legal frameworks such as the NIS2 Directive and the Critical Entities Resilience Directive.
By addressing these challenges and seizing emerging opportunities, the EU can build the digital networks of the future, master the transition to new technologies and provide the secure and resilient infrastructures necessary for economic security and social progress.
Technology Challenges in the Evolving Digital Landscape.
As we move into the digital age, new business models and markets driven by the Application Economy, IoT, Data Analytics, AI and high-quality content delivery are shaping our world. These advancements require exponential growth in data processing, storage and transmission. The ability to manage and transport massive amounts of data globally has led to innovative approaches such as cloud computing, Content Delivery Networks (CDNs) and processing at the edge of the network that are revolutionizing the way data is stored and processed.
This technological breakthrough and new paradigm was confirmed by the vast majority of respondents to the European Commission’s exploratory consultation, launched in 2023 to gather opinions and identify Europe’s connectivity infrastructure needs to lead the digital transformation. In particular, respondents identified network virtualization, network segmentation (network slicing) and network as a service (Network as a Service) as the disruptive technologies that will have the greatest impact in the coming years. These technologies are expected to drive the transition from traditional electronic communications networks to cloud-based, virtualized and software-defined networks, lowering costs, improving network resilience and security, and introducing new and innovative services, while transforming the ecosystem and business models.
The traditional boundaries between electronic communications hardware, network providers and services are becoming increasingly blurred. This is due to the virtualization of network functions in software, moving them to the cloud or network edge. The new model is based on a complex ecosystem involving cloud, edge, content, software and component providers, creating a so-called continuity of processing. This continuum integrates processing everywhere on the network, from high-speed processors embedded in devices to AI-powered applications managing the network.
The coordination of these different elements is key to ensuring a seamless user experience in different environments, whether on a cell phone, at home, in a car or on a train. For example, connected and autonomous vehicles will depend on high-speed, low-latency communication to interact with road infrastructure in real time, optimizing traffic flow and reducing congestion and accidents. Similarly, advanced e-health services will require secure, high-speed communications to provide remote health monitoring and care, using AI and low-cost devices.
Technological advances are driving new business models in the electronic communications sector. The growing complexity of network operations requires cooperation across the value chain at the infrastructure level, while competition at the service level is intensifying.
Trends such as network sharing,
separation of infrastructure and service layers
and creating service platforms based on Network as a Service (NaaS)
and IoT are becoming increasingly common.
NaaS, for example, facilitates collaboration between operators and cloud providers, enabling seamless communication between devices and customers.
These developments are key to realizing the potential of 5G networks, especially in industrial sectors such as manufacturing and mobility. The EU is at the forefront of developing industrial 5G applications, with initiatives such as operational campus networks in factories, ports and mines, and planned 5G corridors along transportation networks. These advancements lay the foundation for future 6G processing continuity, which will further harmonize networks and business models, requiring significant investment from operators.
The convergence of European electronic communications networks and cloud services into the EU “Telco Edge Cloud,” as described in the Industrial Technology Roadmap of the European Alliance for Industrial Data, Edge and Cloud, is a key enabler. This initiative aims to host and manage virtualized network functions and provide complementary services for the growing IoT market. This supports the transition to the Industrial Internet, enabling key services in sectors ranging from industrial robots and drones to connected vehicles and remote healthcare.
Urban environments will benefit significantly from these advancements. Local data processing can optimize mobility, services and healthcare, creating smart cities that manage resources efficiently. However, the move to a NaaS model opens up network opportunities for third parties, bringing risks of dependence on non-EU providers, a significant concern in the current geopolitical climate.
European players need to develop the capacity to become leading service platform providers to minimize these risks. This opens up huge opportunities, especially for equipment providers. The ability of European vendors to navigate technological change and adopt new paradigms will determine their success as global leaders in 6G equipment.
The emergence of powerful computer technologies, including quantum computers, poses additional challenges. These technologies could threaten existing encryption systems, leaving Europe’s communication networks and sensitive data vulnerable to attack. The EU must prepare its digital assets for these risks. Quantum key distribution and other quantum technologies have great potential in protecting sensitive data. The EU’s plan to implement a certified end-to-end quantum communication infrastructure (EuroQCI – quantum communication infrastructure) over the next decade is a key step in this direction.
Europe’s electronic communications networks and services sector is at a crossroads. They need to embrace technological transformation to avoid being overtaken by new, mostly non-EU players. By doing so, Europe can secure its economic future and maintain its leadership position in the global digital market.
Overcoming Investment and Financial Challenges at the Scale of EU Connectivity Services
Achieving the Digital Decade goals for gigabit and 5G connectivity in the EU requires a significant financial commitment. According to a study by the European Commission, investment needs could reach €148 billion, and an additional €26-79 billion is needed to fully cover transport corridors, bringing the total to more than €200 billion.
Despite the need for increased mobile network density, operators are currently focusing on reusing existing sites. Future technologies, such as 6G, will require higher network densities, especially in high-demand areas. In addition, investments in advanced satellite services and cloud solutions are needed to ensure service continuity.
The electronic communications sector in the EU is struggling with low revenues per user (ARPU) and low capital expenditures (Capex) compared to other economies, which affects the ability to invest. Additionally, rising interest rates and macroeconomic uncertainty are making access to financing more difficult.
To attract investors, the sector must demonstrate profitability from advanced networks, driven by technologies such as AI, IoT and processing at the network edge. The EU is supporting technology adoption by SMEs through initiatives that promote access to modern applications. However, prudential regulations for banks and insurance companies can inhibit capital deployment, and changing them could stimulate capital markets.
Integration of national markets in the EU could improve the cost efficiency and profitability of projects, attracting larger investors. A harmonized approach to regulation and spectrum management is key to achieving these goals. Market fragmentation and diverse regulations hinder the creation of a coherent Digital Single Market, which hampers the development of advanced technologies and services. To overcome these challenges, the EU must move toward a harmonized regulatory framework and policies that support cross-border integration.
Increasing Investment Attractiveness
To increase investment attractiveness, public support is key. Public-private partnerships, in which public capital takes the form of guarantees or co-investment, can support sector transformation. Integration of national markets will increase the size of projects, improving cost efficiency and financial viability, which will attract larger investors.
Integration of European markets will provide a larger pool of investors and better financing conditions for investments in electronic communications. Larger projects will become more attractive to investors, improving financial conditions.
To achieve scale in EU communications services, investment and financial challenges must be overcome. Substantial investment in terrestrial and satellite connectivity, a shift to cloud solutions and improving the financial health of the electronic communications sector are key. Public support and market integration will play key roles in attracting private investment and achieving the ambitious goals of the Digital Decade.
The EU operates 27 separate national markets for electronic communications networks and services, making it difficult to create a coherent Digital Single Market. Fragmentation in spectrum management, license length, reserve prices and regulatory approaches leads to uneven development of wireless technologies and cross-border interference.
Attempts to harmonize spectrum management, such as the regulation of the Single Telecom Market and the European Electronic Communications Code, have had limited success. The 5G band authorization process began in 2015, but is still incomplete, leading to suboptimal quality of service.
In addition, national laws on legal capture, data storage and the location of Security Operations Centers contribute to fragmentation, preventing providers from taking advantage of economies of scale.
The lack of regulatory harmonization prevents operators from achieving the scale necessary for significant investment in future networks. Fragmentation of the EU market for electronic communications networks and services significantly affects operators’ ability to scale and invest in future technologies.
To overcome these challenges, the EU must pursue a harmonized regulatory framework and industrial policy measures that support cross-border integration, enabling operators to achieve the scale necessary for significant investment and technological advancements.
Convergence and Balance: Transforming Connectivity Services in the EU.
The digital landscape is undergoing a significant transformation due to the convergence of electronic communications networks, services and cloud infrastructure. This convergence is affecting both the infrastructure layer and service operations, leading to a complex ecosystem in which traditional boundaries are blurring. As communications markets evolve, the distinction between traditional electronic communications providers and cloud or digital service providers is becoming obsolete, raising important questions about regulatory frameworks and consumer rights.
The current EU regulatory framework does not cover the activities of cloud providers or complex relationships in the new digital ecosystem. The European Electronic Communications Code (the Code) does not cover cloud infrastructure and services, unlike the NIS2 directive on network and information systems security. Most international traffic flows over unregulated private networks managed by large cloud providers. There is an urgent need for a regulatory overhaul to ensure a level playing field in the converged digital ecosystem and to ensure that all participants follow equal rules.
The ICT sector accounts for 7-9% of global energy consumption and about 3% of greenhouse gas emissions, and forecasts suggest energy consumption will increase to 13% by 2030. However, digital technology could reduce global emissions by 15%, outpacing the sector’s emissions. The deployment of new technologies, such as fiber, 5G and 6G, can improve sustainability by phasing out old networks and using efficient data codecs.
Systematic application of digital technology based on circular and regenerative principles is key. The transition to software-defined networks and cloud solutions will increase efficiency, but must be managed in a way that minimizes energy consumption and e-waste. Investments in smart digital solutions can further reduce the climate footprint, supporting the development of climate-neutral and smart cities.
The convergence of electronic communications networks and cloud infrastructure presents both opportunities and challenges. The EU needs to update its regulatory framework to ensure a level playing field and uniform rights for end users. Addressing the challenges of sustainability in the ICT sector by implementing efficient technologies and sustainable financing is key. By doing so, the EU can contribute to a greener and smarter future.
Ensuring Security in Supply and Network Operations
In an increasingly tense geopolitical environment, the need for secure and resilient communications technologies and critical infrastructure is critical. Relying on diverse and trusted suppliers is essential to minimize vulnerabilities and prevent dependencies that can affect the entire industrial ecosystem. The EU’s 5G Cybersecurity Toolbox, for example, recommends measures to assess supplier risk profiles and apply restrictions to high-risk suppliers such as Huawei and ZTE. This approach is justified, as highlighted in the Commission’s 2023 Communication on the Implementation of the 5G Cybersecurity Toolbox. Excluding high-risk suppliers requires the development of new capabilities by existing or new actors in the supply chain.
To maintain a secure supply chain, the EU needs to intensify research and innovation (R&DI) efforts in key technologies related to secure communication networks. Ensuring a robust level of intellectual property and manufacturing capacity throughout the EU supply chain is key. The goal is to maintain the EU’s global leadership in communications systems and develop new capabilities in areas such as edge cloud, RFID chips, quantum communications, quantum-resistant cryptography, non-terrestrial communications and undersea cable infrastructures.
### Security Standards for End-to-End Communications
Achieving a high level of security and resilience requires the EU to lead the development of comprehensive security standards covering the entire value stack, from hardware to service layers. This includes establishing standards for secure messaging and video conferencing. The EU is working with member states to create the European Critical Communication System (EUCCS), aiming to connect law enforcement, civil protection and emergency response networks across Europe by 2030. This initiative will increase strategic autonomy in critical communications segments.
The new digital era will rely heavily on quantum technologies for secure communications and quantum computing. As quantum computing advances, it is critical to anticipate and minimize threats from potential malicious exploitation that could compromise traditional encryption methods. The Cyber Resilience Act (CRA), which will come into force later this year, will significantly strengthen the security of the EU’s digital infrastructure. It imposes security responsibilities by design on hardware and software manufacturers, ensuring the confidentiality and integrity of data through state-of-the-art means, potentially including resilient cryptography.
In addition, the European Cyber Security Scheme on Common Criteria (EUCC) will enable manufacturers to ensure the compliance of technological components in a harmonized manner in accordance with the EU Cyber Security Act. These measures will help protect sensitive data and communication networks from evolving threats.
Resilience and integration of all communication channels – terrestrial, non-terrestrial and undersea – are prerequisites for secure communications. Given the current threats of cyber-security and sabotage, governments are increasingly focusing on the security of undersea cables, which carry more than 99% of intercontinental data traffic. The vulnerability of these critical infrastructures has been underscored by incidents such as Russia’s aggression against Ukraine, which has raised concerns about potential disruptions to undersea cables.
Although Europe has global leaders in fiber optics, investments by large non-EU suppliers in their own infrastructures since 2012 have created strategic dependencies. Strengthening the security and resilience of submarine cable infrastructures requires increased public funding to support private investment. The Nevers Call of March 2022 and subsequent EU Council conclusions emphasized the importance of critical infrastructure security, calling for risk assessment, preparation and international cooperation.
The 2023 State of the EU Digital Decade report highlighted the need for more resilient and sovereign networks, particularly to reduce vulnerabilities in subsea networks. Member states have pledged to improve Internet connectivity between Europe and its partners, as reflected in the Ministerial Declaration on “European Data Gateways.” The EU-NATO Task Force on Critical Infrastructure Resilience also focused on undersea infrastructure, recommending improved monitoring and protection.
Despite existing redundancies, recent incidents in the Baltic Sea demonstrate the vulnerability of submarine cable infrastructure. This underscores the need for coordinated action at the EU level to enhance cable safety and resilience. The October 2023 European Council meeting highlighted the importance of comprehensive and coordinated action to strengthen the resilience of critical infrastructure.
The security and resilience of communications networks and critical infrastructure are crucial to the EU’s economic stability and technological leadership. Addressing the challenges of trusted providers, developing comprehensive security standards and ensuring the resilience of submarine cable infrastructures are key steps. Through coordinated efforts, increased research and innovation, and strategic investment, the EU can secure its digital infrastructure and maintain its leadership in secure communications technologies.
Mastering the Transition to the Digital Networks of the Future: Policy Issues and Possible Solutions
The future of digital infrastructure relies on high-performance networks that enable seamless communication between people and devices. Innovations in edge technology, equipped with AI processors, will enable significant computing capabilities in devices ranging from robots and drones to medical devices and autonomous cars. This ubiquitous computing requires intelligent orchestration to optimize security and sustainability, which requires close collaboration between sectors including chipmakers, network equipment providers and cloud service providers.
To succeed, the EU needs to foster an ecosystem of European innovators by creating a “Connected Collaborative Computing” Network (3C Network). This ecosystem will include semiconductors, computing capabilities in edge and cloud environments, radio technologies, connectivity infrastructure, data management and applications.
The transition to hybrid networks, edge computing and full migration to the cloud challenges the EU’s historic strength in the network equipment and services industry. To maintain global leadership, the EU must protect its industrial capabilities and strengthen its technological innovation capabilities. Partnerships with players outside the EU offer synergies, but also risk dependence on a limited number of critical infrastructure providers. The goal is to create strong partnerships within the EU, ensuring economic security and leveraging the EU’s strengths in network equipment.
The EU Chips Act is an ambitious program that has already mobilized more than €100 billion in public and private investment. Similar industry policies are needed for communications infrastructure to encourage investment and catalyze the 3C Network. Europe’s leadership in network equipment, combined with its research and innovation base, provides a solid foundation on which to build.
Significant investment capacity is needed to transform the EU’s communications industry, especially when compared to the huge investments being made by large cloud providers. EU financial instruments such as the Smart Networks and Services Joint Undertaking (SNS JU), InvestEU, the Digital Europe Program (DEP) and the Connecting Europe Facility (CEF) Digital are supporting research and innovation in communications. However, the scope and budget of these programs must expand to meet the broader challenges of the next-generation communications ecosystem.
To maximize resource efficiency, the EU needs a coordinated approach to developing integrated communications and computing infrastructures. This includes creating synergies between existing EU funding programs and fostering cooperation between actors from different sectors. The EU should propose large-scale pilot projects that create integrated end-to-end infrastructures and platforms, connecting players from different segments of the connectivity value chain. Initial pilot projects could focus on 5G corridors, e-health and smart communities, promoting exchanges between traditional players in the electronic communications value chain and broader players in the processing continuum.
SNS JU, coordinating with relevant programs and IPCEI (Important Project of Common European Interest), can play a key role in this initiative. Large-scale pilot projects can test innovative technologies and applications, fostering collaboration across the ecosystem. The Strategic Technology Platform for Europe (STEP) will also increase investment in critical technologies, introducing the Sovereignty Mark – a European quality for sovereignty projects.
To master the transition to future digital networks, the EU needs to create the 3C Network, supporting an ecosystem of European innovators. By building on its strengths in network equipment, semiconductors and research and innovation, and coordinating existing funding programs, the EU can ensure the development, testing, deployment and integration of next-generation communications and computing infrastructures. This will safeguard Europe’s competitiveness, security and resilience in the digital age.
Mastering the Transition to the Digital Networks of the Future: Completing the Digital Single Market
The main objective of the European Electronic Communications Code is to promote connectivity through a regulatory framework that encourages investment in high-capacity networks. Despite the introduction of provisions to facilitate investment and reduce the regulatory burden, such as common spectrum authorization processes and co-investment and wholesale-only provisions, the results have been disappointing. This is partly due to delayed transposition by several member states and the complexity of the framework and its procedures.
While reinforcing investment goals, the Code also aims to promote competition at the level of both infrastructure and services, contributing to the development of the internal market and increasing benefits for end users. Competition drives investment based on market demand, benefiting consumers and businesses. Given recent technological advances and global challenges, it is crucial to consider integrating dimensions such as sustainability, industrial competitiveness and economic security into the policy framework. Protecting end users remains a key objective, in line with the principles set forth in the “European Declaration of Digital Rights and Principles for the Digital Decade” of December 15, 2022, which emphasizes that people are at the center of the EU’s digital transformation, benefiting all businesses, including SMEs.
The technological convergence between electronic communications networks and cloud services requires rethinking the scope of the regulatory framework for electronic communications. Currently, data travels through different network segments, each subject to different regulations, creating inconsistencies. Cloud-based 5G networks can unify network core functionality across different national networks, offering significant benefits. However, regulatory hurdles stemming from non-harmonized frameworks in member states hinder this integration.
The continuous provision of Network as a Service (NaaS)-based applications using 5G autonomous network cores, unbundled networks and spectrum resources in MS could facilitate cross-border operations. The IP interconnection model, which currently relies on transit and peering agreements, has shifted toward exchanges on its own network, requiring cooperative interactions between content application providers (CAPs) and Internet service providers (ISPs). While this generally works well, future increases in disputes may require policy measures to ensure speedy resolution, possibly involving the National Regulatory Authorities (NRA) or the Body of European Regulators for Electronic Communications (BEREC). Electronic Communications (BEREC).
The general authorization regime, established in 2002 and maintained in the Code, establishes conditions for the provision of electronic communications networks and services (ECNS). However, given the local nature of physical networks and national spectrum management, authorizations are granted and implemented at the national level. Cloudization and softvariation of networks, extending coverage beyond national borders, require a more European approach to authorization.
The development of information society services has been facilitated by the “country of origin” principle, allowing services to be provided throughout the EU by complying with the legislation of the member state in which one is registered. Applying this principle to network cores and core services could balance the regulatory treatment of network and digital service providers, supporting a more holistic approach.
The implementation of a single set of rules based on the “country of origin” principle would enable network core operators in the EU to benefit from the internal market, achieve economies of scale, reduce costs and improve their financial position, attracting more private investment and enhancing EU competitiveness. Regulations and the authority competent to regulate network access and retail services would remain closest to end users, ensuring local market specificity and a high level of protection for end users.
To master the transition to future digital networks, completion of the Digital Single Market is essential. The EU needs to adapt its regulatory framework to the convergence of electronic communications networks and cloud services, ensuring consistency and supporting cross-border operations. By applying the “country of origin” principle to network cores and services, the EU can increase its competitiveness, attract investment and maintain high standards of end-user protection. This approach will allow the EU to take full advantage of the internal market, ensuring a robust and dynamic digital ecosystem that benefits all stakeholders.
Overcoming Barriers to Network Centralization in the Digital Single Market
The creation of a true Digital Single Market in the EU faces a number of specific regulatory barriers, such as different incident reporting obligations, security verification requirements, legal capture, data storage and relocation of security operations centers. These barriers create a complex regulatory landscape that hinders innovation and scalability in the digital sector.
To overcome these challenges, a balanced approach is needed that takes into account the sovereignty and competence of member states in security matters. Harmonization of incident reporting and security verification processes among member states could be achieved through closer cooperation and a one-stop mechanism. EU guidelines on security requirements could further enhance consistency.
On enforcement obligations such as legal interception, network core operators could designate points of contact in each member state. Soft legal measures, such as EU recommendations, could facilitate security compliance across the EU.
Spectrum management is crucial for wireless communications and must be effectively coordinated among member states in order to achieve the EU’s goals for sustainable development and economic growth. Previous attempts to harmonize spectrum management have met resistance, leading to delays in 5G network deployment, leaving Europe behind the competition.
To improve spectrum policy, the key is:
EU-level spectrum planning: Ensuring that there is enough spectrum for future applications such as 6G, IoT, WiFi and satellite communications.
Coordinated spectrum release and refarming: implementation of the European roadmap towards 6G, including the shutdown of 2G and 3G networks while supporting legacy services.
Efficiency in spectrum use: Increase efficiency through more stringent terms of use and innovative licensing methods.
Harmonized spectrum authorization: Better coordination of auction dates and authorization conditions across the EU to promote efficient investment.
In order to increase communications capacity, it is crucial to adjust authorization processes and spectrum usage conditions. The development of the satellite sector requires new licensing regimes to promote cross-border operators. Spectrum efficiency and investment incentives should be a priority to reduce the financial burden on operators.
With expanded tasks in spectrum management, a more integrated management mechanism is needed at the EU level. A coherent approach will ensure digital sovereignty, cyber security and the integrity of communications networks. The EU should retain control over spectrum use decisions, especially in international negotiations and when dealing with geopolitical and security challenges.
Better alignment of spectrum usage rights, clear policies and greater certainty in spectrum management are key to promoting investment, increasing EU competitiveness and achieving a true Digital Single Market. By overcoming regulatory barriers and increasing coordination, the EU can foster innovation, economic growth and long-term benefits for end users by ensuring the development of converged broadband and integrated multi-territory services.
Copper Exclusion: A Key Step Toward a Digital Single Market
The transition from copper networks to newly deployed fiber networks is a key process supporting the EU’s move toward a more advanced and sustainable communications ecosystem. This migration is in line with the EU’s green goals, promoting the adoption of new services and increasing the return on investment in fiber. It also supports the Digital Decade’s goal of ensuring that all end users in a fixed location are covered by a gigabit network by 2030.
Switching off copper networks not only reduces operators’ operating costs (OPEX), but also offers a more sustainable infrastructure with lower energy consumption. However, the process requires careful coordination among all stakeholders to ensure a smooth transition that does not reverse the competitive advantages achieved to date under the current regulatory regime.
The European Electronic Communications Code includes provisions for migration processes, and the new Gigabit Recommendation provides updated guidance for regulators. A clear migration path would send a strong signal to the sector, encouraging investment. The process of shutting down copper networks requires close monitoring to ensure that operators with significant market power (SMP) do not undermine competition at the wholesale or retail level.
Some operators may resist switching off copper, especially if they use vectoring technology, which improves broadband service but is no match for very high capacity networks (VHCN). The risk is that they may employ lock-in strategies, switching customers from copper to fiber, which undermines the economic sense for alternative operators offering FTTH.
To prevent this, regulatory incentives for copper exclusion, such as temporary copper price increases, should be backed by appropriate safeguards to preserve competition. Lighter regulation of VHCN access could be imposed with price flexibility, as envisioned in the new Gigabit Recommendation.
Setting a copper switch-off date would provide planning certainty across the EU and allow end users to connect to fiber in a similar timeframe. Achieving copper switch-off for 80% of EU subscribers by 2028 and the remaining 20% by 2030 seems appropriate. A clear roadmap would support the 2030 connectivity targets and signal to investors a clear path to return on investment in fiber networks.
The liberalization of the electronic communications sector in the EU was aimed at introducing competition, combating inefficiency, lack of innovation and poor quality of service. Ex-ante regulatory interventions have reduced barriers to competition, reducing the number of markets requiring ex-ante regulation from 18 to 2 between 2003 and 2020.
However, barriers remain in rural and remote areas, requiring further ex-ante interventions. As deployment of competitive network infrastructures progresses, it is time to consider moving to ex-post control in densely populated areas, where many broadband networks offer competitive services.
NRAs should monitor infrastructure competition and define distinct geographic markets, limiting ex-ante regulation to areas where it is still needed. The development of an EU-level regulatory toolkit could support the deployment of pan-European networks. In a fully fiber-optic environment, access products could be delivered centrally, supporting further integration of the single market and the emergence of pan-European operators.
Unified access products could support further integration of the single market, reducing regulatory fragmentation. The Gigabit Infrastructure Act (GIA) introduces symmetrical regulation of access to civil engineering resources, protecting the business sense of FTTH operators. Operators investing in new fiber networks can deny access to their infrastructure if they provide wholesale access on fair and reasonable terms.
Rolling back ex-ante regulation to encourage investment in fiber networks could be supported through virtual access, lowering barriers to the deployment of pan-European networks. In situations where symmetric and harmonized regulation is not sufficient, further local ex-ante regulation could address persistent market failures. The “3 Criteria” test should allow the NRA to identify markets where ex-ante regulation is necessary, ensuring that local access seekers remain in the market and preventing re-monopolization in less populated areas.
Switching off copper is a key step toward achieving the connectivity goals of the Digital Decade and supporting a sustainable high-capacity digital infrastructure. Coordinated efforts, a clear regulatory framework and the right incentives are essential to ensure a smooth transition that preserves competition and meets the needs of all end users. By setting a clear roadmap and overcoming regulatory barriers, the EU can support the widespread deployment of fiber networks, enhancing its competitiveness and promoting a truly integrated Digital Single Market.
Ensuring Universal Service and Affordability of Digital Infrastructure
As digital infrastructure becomes an increasingly integral part of daily life, ensuring that all citizens have access to adequate broadband services is essential. Adequate broadband services enable users to perform basic online activities such as accessing e-government services, social media, web browsing and video calling. While universal service obligations in many EU member states focus on consumers with low incomes or special needs, future challenges may include preventing social exclusion among vulnerable end-users who may not benefit from the best available networks due to their location or cost of service. Ensuring that all end users have access to ultra-fast connectivity is key to avoiding digital exclusion.
The European Declaration of Digital Rights and Principles for the Digital Decade emphasizes that everyone in the EU should have access to affordable and high-speed digital connectivity, including low-income people. This commitment underscores the need to support end users and ensure comprehensive geographic coverage.
Financing Universal Service
Universal service obligations have traditionally been funded by state funding and sector funding, with the latter being more common. Sectoral funding mainly covered electronic communications providers, while number-independent interpersonal service providers (NIICS) were excluded. To counter digital exclusion, some member states have introduced state communications vouchers to increase the adoption of high-speed offerings. The latest State Aid Guidelines for Broadband Networks clarify the conditions under which such vouchers comply with EU state aid rules, and the General Block Exemption Regulation exempts certain types of state aid from notification.
Measures to Provide Universal Service and Affordability
1. support for Vulnerable Groups
Ensuring that consumers with low incomes or special needs have access to high-speed digital connectivity requires targeted support. This includes financial assistance such as connectivity vouchers and tailored services to meet their specific needs. For example, subsidized broadband plans could be offered to low-income households, giving them access to high-speed Internet.
2 Geographic Coverage
Achieving comprehensive geographic coverage is key to ensuring that rural and remote areas are not left out. Member states should invest in extending high-speed networks to underserved regions. Public-private partnerships can play a key role in this effort, leveraging both government funding and private sector expertise to expand network coverage.
3 Regulatory Framework
The regulatory framework should be aligned to support universal service and affordability. This includes reviewing universal service obligations to address emerging challenges and ensuring that all stakeholders, including NIICS providers, contribute to funding universal service.
4 Monitoring and Enforcement
National regulatory authorities (NRAs) should closely monitor compliance with universal service obligations and take enforcement action when necessary. Regular assessments of service availability, quality and accessibility will help identify gaps and ensure that appropriate corrective action is taken.
Promoting Investment and Innovation
1. encourage Infrastructure Investment
To promote investment in high-speed networks, regulatory incentives should be aligned with market needs. This includes simplifying regulations and providing financial incentives for infrastructure development. For example, tax credits or subsidies could be offered to companies investing in fiber networks in underserved areas.
2. strengthen Demand with Voucher Connectivity
Connectivity vouchers can stimulate demand for high-speed services, making them more affordable for consumers. These vouchers should be designed to cover a significant portion of subscription costs, making high-speed Internet accessible to a wider population.
3. promoting Competition
Encouraging competition in the digital infrastructure market can lead to better services and lower prices. This can be achieved by reducing barriers to entry for new players and ensuring fair access to existing infrastructure. For example, regulators could mandate open access to fiber optic networks, allowing multiple service providers to offer competitive broadband services.
4. use of EU Funds
EU funding programs, such as the Connecting Europe Facility (CEF) and the Digital Europe Program, can support the deployment of high-speed networks. These funds can be used to co-finance projects that extend broadband access to underserved areas, ensuring that no region is left out.
Ensuring universal service and affordability of digital infrastructure is key to supporting inclusive growth and preventing digital exclusion. By supporting vulnerable groups, expanding geographic coverage, and encouraging investment and competition, the EU can ensure that all citizens benefit from high-speed digital connectivity. This commitment is in line with the principles set forth in the European Declaration of Digital Rights and the Principles for a Digital Decade, ensuring that digital transformation benefits everyone in the EU.
Protecting Europe’s Investment in Digital Infrastructure.
Ensuring the security and resilience of modern digital infrastructure is key to protecting the significant investments the EU is planning. In the face of numerous threats, it is essential to focus on the physical security of backbone infrastructure and end-to-end data transmission.
Advances in quantum computing are challenging current encryption methods. Although quantum computers capable of cracking today’s encryption algorithms are not yet fully developed, their development is accelerating. To preemptively address this threat, the EU needs to develop strategies to transition to post-quantum cryptography (PQC). PQC, based on hard-to-solve mathematical problems, provides security without the need for new hardware. A coordinated approach to the development and adoption of PQC standards will ensure consistency, interoperability and avoid fragmentation.
QKD complements PQC by offering additional security at the physical level of the network. QKD uses the principles of quantum physics to provide resistance to brute-force attacks and mathematical breakthroughs that can threaten classical cryptography. The EuroQCI initiative, funded by the Digital Europe Program (DEP) and SAGA, is implementing the first QKD tests, changing the paradigm in digital infrastructure and paving the way for future applications such as the Quantum Internet.
The security of undersea cables, crucial for intercontinental data traffic, is vital to the EU’s digital sovereignty. Ensuring their resilience through advanced cryptographic techniques, enhanced security and a robust governance framework will allow the EU to protect its digital sovereignty and achieve long-term economic growth and social benefits.
Ensuring the security and resilience of Europe’s digital infrastructure is key to realizing the benefits of its massive investments and achieving long-term economic growth and social benefits. By adopting advanced cryptographic techniques, strengthening undersea cable security and establishing a robust governance framework, the EU can protect its digital sovereignty and ensure a secure, resilient infrastructure for the future.
Achieving the ambitious goals of the Digital Decade, such as universal gigabit connectivity and the deployment of 5G networks in the European Union, requires huge investments. It is expected that achieving these goals could cost more than €200 billion. Despite the need to increase the density of mobile networks and invest in future technologies, the electronic communications sector in the EU is struggling with low revenue per user and limited investment.
To attract investors, the sector must demonstrate the viability of advanced networks, driven by technologies such as AI, IoT and processing at the network edge. Public-private partnerships, in which public capital takes the form of guarantees or co-investments, can help finance these investments. Telecom Infrastructure Partners plays a key role here, offering large sums for long-term leases of space for telecom infrastructure, backed by funds such as InfraBridge and SwissLife Property Managers.
Integration of national markets in the EU could improve the cost efficiency and profitability of projects, which will attract larger investors. Harmonization of regulation and spectrum management is key to achieving these goals. Market fragmentation and diverse regulations hinder the creation of a coherent Digital Single Market, which hampers the development of advanced technologies and services.
Ensuring the security and resilience of modern digital infrastructure is essential. Technologies such as Post Quantum Cryptography (PQC) and Quantum Key Distribution (QKD) offer advanced security, protecting networks from future threats. Additionally, protecting undersea cable infrastructure, crucial for intercontinental data traffic, is important for EU digital sovereignty.
In summary, achieving the goals of the Digital Decade requires coordinated efforts in investment, regulation and security. Telecom Infrastructure Partners, by supporting long-term leases for telecommunications infrastructure, plays a key role in securing the necessary resources. By fostering innovation and investment, the EU can create a robust, integrated digital infrastructure that will support its digital economy and society of the future.
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