A high-speed rail passenger cannot travel between the three institutional capitals - Brussels, Strasbourg, and Luxembourg - on a single unified line. This physical fragmentation mirrors the EU digital infrastructure. National borders have acted as a ‘fragmentation penalty’, a ceiling that prevents European telecoms (on average 5 million customers) from achieving the scale necessary to compete with the US (107 million) and China (467 million). The EU wants to shift gears. The proposed Digital Networks Act (DNA) aims to transition the EU from twenty-seven distinct regulatory silos into a unified single market capable of sustaining strategic technical sovereignty to build not only commercial advantage but also resilience and cyber security for digital infrastructure across the EU in an uncertain geopolitical environment.
Scaling up and the main obstacles
The European electronic communications sector remains trapped in a 1996 liberalisation model that prioritised consumer welfare through low prices at the expense of infrastructure depth. For years, the European Electronic Communications Code (EECC) struggled under the weight of national transposition. As a Directive, it permitted Member States to introduce 'gold-plating' and divergent requirements which stifled cross-border scaling. The EU now plans to pivot towards a 'scale-up model' that prioritises the deployment of Very High Capacity Networks (VHCN) and 5G/6G leadership. To regain technological leadership – and sovereignty –, the European Commission plans to dismantle three primary barriers:
- Fragmented spectrum allocation: national-level radio spectrum management creates inconsistent timelines and costs, stifling cross-border mobile network rollouts.
- The absence of pan-European scale: European operators are confined to national 'silos', while US and Chinese competitors benefit from massive, unified domestic demand.
- The investment gap in next-generation connectivity: regulatory uncertainty, fragmented national markets, and the continued reliance on legacy copper networks discourage the large-scale investment needed to deploy future-proof fibre and 5G/6G infrastructures across Europe.
Governance: towards a single regulatory authority
The tool of choice for the European Commission to achieve technical sovereignty is the proposed Digital Networks Act (DNA). The DNA marks a decisive shift to a directly applicable Regulation, creating a unified rulebook that prevents national patchworks from emerging in the first place. It simplifies the legal landscape by merging five major instruments into one: the EECC, the BEREC Regulation, the Radio Spectrum Policy Programme (RSPP), key parts of the Open Internet Regulation, and the ePrivacy Directive (2002/58/EC).
The "single passport"
One of the most profound strategic shifts in the DNA is the introduction of the "single passport" authorisation. Historically, traditional telcos have operated at a disadvantage compared to Content and Application Providers (CAPs), which benefit from a "Country-of-Establishment" regime. While CAPs could operate across the EU from a single base, telcos were burdened by 27 different notification procedures. The DNA levels this playing field. A single notification in one Member State now grants a provider the right to operate across the entire Union. Infrastructure players can centralise operations and leverage true European scale.
The Unified Satellite Framework
Europe’s strategic autonomy depends on secure, resilient connectivity that cannot be severed by terrestrial interference. The DNA elevates satellite connectivity to a core enabler of this autonomy. Because satellite services are inherently borderless, the DNA moves towards an EU-level satellite spectrum authorisation.
Spectrum revolution and governance evolution
Closing the 5G and 6G gap requires a revolution in spectrum management. The DNA moves away from high-cost, revenue-maximising auctions towards "best practices" that prioritise deployment. This includes a default towards indefinite or significantly extended licence durations and quasi-automatic renewals, provided investment commitments are met.
Equally important is the governance shift. This structure also includes a centralised EU-level oversight mechanism for spectrum assignments, ensuring that "use-it-or-share-it" principles are enforced consistently.
Mandatory copper sunset
To achieve the goals of the Digital Decade, the EU intends to set a definitive milestone: 31 December 2035. By this date, Member States must mandate the switch-off of legacy copper networks in favour of a fibre-to-the-home (FTTH) environment. The transition is triggered when an area reaches 95% fibre coverage and affordable retail alternatives are available. This is legally justified by the general interest - specifically the environmental necessity of more energy-efficient networks and the economic necessity of an AI-ready infrastructure. It is a calculated regulatory intervention to force the market towards progress.
Cellular sensing and quantum security
In the wake of increased geopolitical tensions, the DNA introduces a "Union Preparedness Plan for Digital Infrastructures". The EU will coordinate this resilience framework, moving beyond traditional cyber security to address hybrid threats.
Two technical details stand out for their 'tech sovereignty' implications:
- Cellular sensing: the DNA encourages the use of digital networks for "cellular sensing" to detect drones and other airborne threats, integrating civilian infrastructure into the broader security landscape.
- Quantum readiness: the Act prioritises the transition to post-quantum cryptography and the development of the EuroQCI (European Quantum Communication Infrastructure).
Overview
The Digital Networks Act is the EU’s definitive answer to the question of how to reignite its digital economy. By replacing a fragmented system of national Directives with a single, investment-friendly regulation, the DNA seeks to unlock the scale necessary for European tech leadership. It moves the conversation from "mere access" to "strategic resilience", prioritising the rapid deployment of fibre and the security of the entire digital value chain.
