Europe’s telecom operators could gain access to valuable radio spectrum without a fixed expiry date under proposed new rules from the European Commission, a move aimed at accelerating network investment and improving connectivity across the region.
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Reuters news report said the proposed overhaul of EU telecom regulations will be introduced as part of the Digital Networks Act, scheduled to be presented by EU technology chief Henna Virkkunen on January 20. The draft will undergo negotiations with EU member states and the European Parliament before it can be formally adopted.
Indefinite spectrum rights to support long-term investment
Under the proposal, spectrum usage rights would, in principle, be granted for an unlimited duration. The Commission argues that longer or indefinite spectrum licenses would provide greater investment predictability for telecom operators, helping to speed up network roll-outs, enhance service quality, and ensure market stability.
The document notes that permanent spectrum rights could also encourage the development of a more efficient secondary market for spectrum trading and leasing, allowing operators to better adapt spectrum usage to evolving technological and market needs.
Safeguards against spectrum hoarding
To prevent spectrum from being underused or blocked by dominant players, EU regulators are considering safeguards such as “use-it-or-share-it or lose-it” conditions, along with strict network roll-out obligations. These measures are intended to ensure that spectrum resources remain available to more efficient or innovative competitors if existing holders fail to deploy them effectively.
Stricter oversight for dominant operators
The Digital Networks Act also proposes broader regulatory powers over companies with significant market power. Operators deemed dominant in one market could be designated as having significant influence in closely related markets as well. This could subject them to additional obligations, including transparency and non-discrimination requirements, and potentially stricter measures such as accounting separation, price controls, and cost accounting.
Net neutrality remains unchanged
Despite pressure from parts of the telecom industry for more flexibility, the proposed legislation reaffirms the EU’s commitment to net neutrality. This principle requires telecom operators to treat all internet traffic equally, without discrimination or preferential treatment.
GSMA on 5G
The recent GSMA’s Mobile Economy Europe report shows 5G adoption will be reaching 30 percent of mobile connections in 2024. 5G will become the dominant technology by 2026. By 2030, 5G is expected to account for about 80 percent of connections and contribute an additional €164 billion to Europe’s economy.
European mobile networks already generated roughly €1.1 trillion in economic value in 2023, supporting over 3 million jobs, equivalent to about five percent of Europe’s GDP. GSMA report said Europe lags behind regions such as North America and East Asia in 5G rollout and adoption, partly due to regulatory and investment barriers.
If adopted, the Digital Networks Act would mark one of the most significant updates to Europe’s telecom framework in years, reshaping how spectrum is allocated, traded, and regulated while reinforcing competition and consumer protections across the digital economy.
BABURAJAN KIZHAKEDATH
