The Digital Networks Act, which is being unveiled in January 2026 by the European Commission, is the European Union’s attempt to pull together all the main standards that govern digital connectivity into one single, predictable framework. This will be the beginning of a lengthy process towards final approval, which we can expect in about a year from now. Several chapters are likely to face challenges, specifically the “EU Network Passport”, the spectrum licensing, the copper decommission deadline, and the “network fee”.

The Status Quo  

Nowadays, telecom rules come from a long list of separate laws, with the oldest dated 2007 and the latest update from 2014. As these laws were in the form of directives, each Member State implemented them in their own way, leading to an uneven system across the Union. Some countries updated their regulations rather quickly, while others took years, each adding their own layer of administrative burden. This resulted in a framework that is slow to move, hard to coordinate, and is often unpredictable for the companies that operate networks and services, as well as for the people who depend on them. The upcoming Digital Networks Act tries to change this by setting one single regulatory act that applies everywhere in the same way.

While the scope of the DNA is to create a single framework for helping European telecom companies, not all the provisions will be seen friendly to the businesses.

One “EU Network Passport”: A New General Authorisation Procedure 

One of the most significant changes introduced by the Act concerns the way a telco company can enter a Member State’s market.

Under the current system, a service provider wanting to operate in several Member States must file notifications and documents in each jurisdiction, informing each Member State’s regulatory authority with the right to request additional documentation. The Digital Networks Act replaces these fragmented procedures with a harmonised notification template called the “EU Network Passport”. Under the new procedure, a company will notify an authority once, using the harmonised template managed at EU level, and that notification will allow the company to provide services across the entire Union.

Given the historically consolidated nature of the telecom market, this provision is likely to be the subject of intense debate among Member States and incumbent operators. Legacy operators are expected to view increased market competition as a direct threat to their dominant positions. At the same time, Member States may be concerned that greater competition will focus primarily on lowering end-user prices rather than sustaining or increasing long-term investment within their national markets.

We can expect this provision will be heavily discussed among Member States and legacy telecom companies that will see their margins and more competition on the market.

Spectrum: Harmonisation and Lifelong Licensing 

Spectrum, the primary resource for wireless networks, also undergoes a significant redesign. The Act aims to foster a more stable and predictable investment environment by transitioning towards longer-term licences. These licences will no longer have a fixed end date, which currently vary from 20 years in Italy to the 80 years in Germany. While the authorities retain the right to adjust or revoke them if conditions are violated, the overarching objective of this provision is to instil confidence in operators to invest in long-term technologies like 5G and 6G.

The Act introduces a practical rule: if an operator fails to utilise the spectrum in their ownership, this spectrum should be shared with other players in the market. While this provision benefits telecom companies and their future investments, it may clash with the interest of Member States, which have historically viewed spectrum allocation bids as a lucrative source of budgetary revenue.

Single Satellite Framework & Switch to Fiber by 2036 

Where the Act is perhaps most forward-looking is in its treatment of satellite connectivity. To reduce the bureaucratic burden of filing for numerous authorisations in each Member State, the new Regulation introduces a single EU level authorisation for satellite networks and services. Once granted, it allows an operator to provide its services across the entire Union under the same conditions. In the Commission’s view, this will increase investment in a sector where the European Union is at least 10 years behind the United States and China.

The Act also sets out a structured path to move Europe from copper networks to fibre. Unlike copper networks that are reaching the end of their technical life, fibre is faster, more reliable and more energy efficient. The Regulation sets a long-term deadline of the end of 2035 for the transition, with room for exceptions in regions where fibre deployment is especially difficult. While a roadmap to switch to fibre has already been implemented in many Member States, giving a final deadline will oblige them and telecom operators to divert investment to finalise their roadmaps.

Network Fee: Facilitation of Voluntary Conciliation 

Probably the most controversial part is the so-called “network fee,” originally introduced in the 2023 consultation on the future of the telecom sector.

The Commission will allow providers to request national authorities to organise a joint meeting between telecom companies and Big Tech representatives to reach an agreement on the technical guidelines and, most importantly, introduce a “fee” that the Big Tech will have to pay the telecom operators for generating a large volume of data traffic. This idea of “ecosystem cooperation” has been first introduced by Commissioner Breton in the past term and will see a strong opposition by the Big Tech companies and some Member States who might see this as an anti-American move.

BEREC and RSPG Change of Names  

Lastly, the governance bodies will change name and have more power:

BEREC, the Body of European Regulators for Electronic Communications, will be renamed the Office for Digital Network, and the RSPG, Radio Spectrum Policy Group, which is advising EU institutions on spectrum strategy, will be upgraded to the Radio Spectrum Policy Body and supported by the newly formed Office for Digital Network.

What’s Next? 

The Act itself is presented in the form of a regulation, which will be directly binding upon entry into force. This has already created a “blocking minority” in the European Council when, in November 2025, some Member States, including Italy, Germany, and France, presented a non-paper requesting to switch the Act into a directive to allow Member States to address their national needs. And while the Act is a good beginning in terms of trying to implement a common telecom market, the process will be lengthy and with many obstacles along the way.

Photo: Official X account of Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy of the European Commission