Brussels (Brussels Morning Newspaper) – A coalition of smaller European telecom firms has voiced opposition to European Union proposals for laxer regulation in the fixed network sector, as stated in an open letter released on Thursday, Reuters reported.
The signatories, including Vodafone, Iliad, and 1&1, cautioned that easing regulations for the dominant market players in their respective nations could result in a “re-monopolisation.”
Why are smaller telecom firms opposing the EU plan?
The European Commission‘s suggestions were a “step backwards,” opposed EU competition principles, and would suppress the expansion of fibre optic broadband, the letter stated. Signatories of the letter urged the authorities to adhere to the current model, which needs respective market leaders such as Deutsche Telecom in Germany to give competitors access to their infrastructure under fixed requirements.
The growth of fibre optic networks has historically been a debated topic, as smaller telecom providers often feel sidelined by dominant market players, many of which are former monopolists.
What are the goals of the EU Commission’s proposed laxer regulations?
As reported, the European Commission’s proposal for a loosening of regulations for fixed networks lies with the proposed Digital Networks Act (DNA), which could be proposed in the 4th quarter of 2025. The objective of the DNA is to simplify, harmonise, and modernise the current EU telecoms regulatory framework to boost investment, innovation, and competitiveness in the sector, including fixed broadband networks and next-generation networks, including fibre and 5G/6G.
The DNA aims to reduce reporting obligations for telecommunications operators by as much as 50% reducing compliance costs, particularly for fixed networks and for services such as B2B and IoT.
The DNA plan will eliminate the differentiated national regulations under the European Electronic Communications Code (EECC) and instead use a directly applicable regulation to enable a more seamless single market for connectivity. This means harmonised spectrum authorisation and cross-border regional operations to help create economies of scale and reduce the barriers related to expanding fixed networks.
