by Mónika Mercz
The Digital Decade initiative of the European Union involves a pledge to reach 100% of 5G and fiber coverage by 2030 for EU citizens, and to ensure that new players have sufficient access to innovative business-to-business and business-to-consumer applications, in addition to encouraging operators to speed up the deployment of stand-alone 5G core networks.[1] This level of coverage is indeed quite an ambitious goal, one which the EU must be taking significant steps towards by implementing legislative measures.
As the 2014 Broadband Cost Reduction Directive was found to not apply consistently in the EU,[2] a new piece of legislation was deemed necessary in order to face the connectivity challenges of digitalization. This led to the creation of the Gigabit Infrastructure Act (GIA), which entered into force on 11 May 2024, and will be fully applicable in November 2025.
Goals of the Digital Decade that made the existence of this Act a necessity include the need to fasten the deployment procedures of very high-capacity networks (VHCNs), with capacities of 1 Gbps and 5G coverage, resulting in less time for authorities to make decisions; the desire to reduce the burdens of red tape by simplifying authorizations for companies; and the aim to be more cost-effective. The main entities affected by these goals are going to be in the public sector, but it will have an impact on network operators too. For developers and investors, the new regulation could make it easier, cheaper, and less complicated to install very high-speed networks, resulting in a higher chance of sufficient competitiveness.[3]
The Commission estimates that the investment gap between the present level and what would be necessary to reach these connectivity targets, is around €65 billion annually.[4] However, certain academics believe that „the GIA is likely to have minimal direct effect [on infrastructure roll-out], as operators are already experiencing a phase of diminishing returns [on investments],”[5] leading to doubts about the effectiveness of implementing legislative measures in order to solve the problems that arise when we think of connectivity and 5G network issues across the EU.
Nevertheless, the GIA implements several useful measures in order to streamline network deployment, including shared use of infrastructure, as well as co-deployment and coordination of civil works. It is a sincere hope that the GIA will also result in the streamlining of administrative procedures, and ensure access to high-speed ready infrastructure. Additionally, the initiative aims to reduce the environmental footprint of electronic communications networks by promoting environmentally efficient technologies like fiber and 5G, and reusing existing infrastructure for better resource utilization.[6]
In addition to the hopes that hinge on the successful implementation of 5G networks, there is a connectivity target too, designed to ensure that by 2030 a fixed gigabit network of a very high capacity will be covering not just all EU households, but all populated areas as well. These 2030 connectivity targets build on the 2020-2025 targets laid out in the gigabit society and 5G action plan communications.[7] On 1 June 2017, the European Parliament also adopted the ’Internet connectivity for growth, competitiveness and cohesion: European gigabit society and 5G' resolution, which consisted of similar aims to those in GIA.[8]
Related developments steadily grew until 2024, which eventually saw the political consensus on the GIA, aimed at facilitating and encouraging „the provision of networks of a very high capacity by promoting the joint use of existing physical infrastructure and enabling a more efficient deployment of new physical infrastructure, so that such networks can be rolled out faster and at a lower cost.”[9]
The co-legislators have even amended the original proposal to include a mandatory conciliation mechanism between public sector bodies and telecom operators, as well as an exception for smaller municipalities, and provisions for rural connectivity. They also clarified fair access conditions, addressed intermediaries between landowners and infrastructure operators, agreed on a voluntary 'fibre-ready' label for buildings, and included carve-outs for critical national infrastructure.[10]
In February 2024, the Commission also adopted the Gigabit Recommendation, as another step of strengthening the connectivity goal of the EU’s Digital Decade. The Recommendation builds on the regulation providing guidelines to national regulatory authorities (NRAs) on how to design regulatory obligations for operators with significant market power. It specifically offers guidance where access to civil-engineering infrastructure is necessary to address competition issues.[11]
These are significant, as well as necessary steps to ensure a high effectiveness and intense engagement of private entities in digitalization, ultimately strengthening the global competitiveness of the EU. While the 2030 targets of digitalization might seem far-fetched as of now, and there are multiple concerns raised about whether full 5G network coverage is even feasible given the current state of the EU, the GIA is an important step in the direction of our common future, in which connectivity is intertwined with competitiveness, human interaction, the economy, and generally: our entire being.
[1] State of the Digital Decade 2024 report, European Commission, 2024. https://digital-strategy.ec.europa.eu/en/factpages/state-digital-decade-2024-report
[2] European Commission: Report on the implementation of the Broadband Cost Reduction Directive, 2018. https://digital-strategy.ec.europa.eu/en/library/report-implementation-broadband-cost-reduction-directive
[3] Romsics Viktor, Kálmán Kelemen: Gigabit Infrastructure Act – towards a faster and stronger network system, DLA Piper, 2023. https://blogs.dlapiper.com/advocatus/2023/10/gigabit-infrastructure-act-towards-a-faster-and-stronger-network-system/
[4] https://www.consilium.europa.eu/en/press/press-releases/2024/02/06/gigabit-infrastructure-act-council-and-parliament-strike-a-deal-for-faster-deployment-of-high-speed-networks-in-the-eu/
[5] Théophane Hartmann: EU broadband law final compromise: Useful legislation, with ‘minimal direct impact’, Euroactiv, 2024. https://www.euractiv.com/section/digital/news/eu-broadband-law-final-compromise-useful-legislation-with-minimal-direct-impact/
[6] European Commission: Gigabit Infrastructure Act, 2024. https://digital-strategy.ec.europa.eu/en/policies/gigabit-infrastructure-act
[7] 5G action plan, In “A Europe Fit for the Digital Age”, 2016. https://www.europarl.europa.eu/legislative-train/theme-a-europe-fit-for-the-digital-age/file-5g-action-plan
[8] Internet connectivity for growth, competitiveness and cohesion: European gigabit society and 5G, 2017. https://www.europarl.europa.eu/doceo/document/TA-8-2017-0234_EN.html
[9] Briefing EU Legislation in Progress: Gigabit Infrastructure Act, 2024. https://www.europarl.europa.eu/RegData/etudes/BRIE/2023/749783/EPRS_BRI(2023)749783_EN.pdf
[10] Gigabit infrastructure act: Council and Parliament strike a deal for faster deployment of high-speed networks in the EU, Pub Affairs Bruxelles, 2024. https://www.pubaffairsbruxelles.eu/eu-institution-news/gigabit-infrastructure-act-council-and-parliament-strike-a-deal-for-faster-deployment-of-high-speed-networks-in-the-eu/
[11] European Commission: Recommendation on the regulatory promotion of gigabit connectivity, 2024. https://digital-strategy.ec.europa.eu/en/library/recommendation-regulatory-promotion-gigabit-connectivity
