Mobile network operators in the EU are being hindered by decades-old laws while still serving as one of the pillars of Europe’s social and economic cohesion.
Laszlo Toth, Head of Europe and CIS at GSMA, the mobile telecommunications industry organisation, says a reset of the EU’s rules and the streamlining of overlapping ones can give the sector a much-needed boost to get back in the race with competition in other continents.
Toth spoke with Euractiv’s Christoph Schwaiger about what the industry hopes to achieve through what he says is a “once-in-a-generation opportunity” to create a Digital Networks Act (DNA), along with what it will take to meet Europe’s connectivity and security needs.
CS: The European Commission concluded its feedback-gathering exercise for the upcoming DNA. How have Europe’s mobile operators evolved over the past years? Why is now the right time to focus on the DNA?
LT: The current telecom regulatory framework in Europe was established almost 30 years ago and has barely evolved since, certainly not in step with the rapid advances in both technology and how we use it. The DNA represents a once-in-a-generation opportunity to reestablish Europe’s telecoms sector as an engine for growth, security and innovation.
When we consider the prioritisation of competitiveness from the European Commission, our digital ecosystem underpins everything, from commerce and logistics to education, defence, and invention.
As we continue to watch other major markets make faster progress in bringing reliable and high-speed connectivity to their consumers and businesses, Europe urgently needs to reset a framework that currently hinders its mobile network operators from accessing the considerable extra investment needed to catch up and regain a competitive footing.
It is a hugely important opportunity, one that likely will not come again with this focus for many years, and therefore one that must not be missed.
CS: There have been various calls for regulations to be simplified. In simple terms, what is the EU overcomplicating?
LT: There are many areas where we encounter multiple sets of overlapping rules at the EU level that demand the same things from mobile network operators. New research has shown there are 34 sets of regulatory obligations on operators across the whole end-user journey. These cause complex and unnecessary information requirements, inconsistent rights across Member States, and constraints on innovative or tailored services.
Only very limited sector-specific rules should remain in the DNA, to avoid unnecessary duplication of regulatory and reporting obligations – such as is the case with the horizontal regulatory framework for consumer protection.
We also see Member States ‘gold-plating’ EU legislation by setting their own national rules on top of what is meant to be a Europe-wide framework. True harmonisation of rules across Member States is necessary to facilitate potential future cross-border operations and to ensure a European digital Single Market.
In addition, we consider that the provisions of the current telecoms code are not suitable for the B2B market.
We support the proposal from the European Commission to reduce existing reporting obligations, not necessarily limited to a 50% cap, but to the fullest extent possible and necessary to achieve simplification.
It is important that this reduction should not be limited to reporting obligations, but to all areas where sector-specific regulation is no longer justified, not proportionate, or overlaps with horizontal rules, such as consumer protection.
A clear example is the outdated ePrivacy Directive, which is over 20 years old and was last updated in 2009. Its sector-specific approach no longer fits the evolving technological and regulatory environment. It overlaps with the horizontal GDPR framework, creating unnecessary burdens and stricter data processing rules that limit innovation. This also results in regulatory imbalances, as today, not all digital service providers are subject to the same rules, despite offering the same or comparable services.
In addition, inconsistent implementation across Member States causes legal uncertainty, hinders the rollout of innovative services at scale (such as the GSMA Open Gateway initiative), and weakens efforts to combat fraud.
We therefore call for the ePrivacy Directive to be repealed, with the exception of the core principle of confidentiality of communications. This principle should be preserved and integrated into a harmonised legal framework (such as the DNA or a similarly comprehensive EU initiative) that applies equally to all communication providers, technologies, and users.
As for the rest, the GDPR would fully cover rules such as the processing of electronic communications data, offering robust safeguards and risk-mitigation measures.
CS: Some of GSMA’s member companies are also saying telecom companies must be allowed to consolidate, which should then drive growth. What pathways do you envision for such consolidation to occur?
LT: The DNA will not be the legislation that addresses Europe’s mergers framework – that review will come, we expect, in late 2027 with the adoption of the revised Merger guidelines and is hugely important. Europe’s telecoms market consists of 27 Member States and more than 100 operators, each serving on average 5 million subscribers – compared to 450 million and 110 million subscribers per operator in China and the USA respectively.
The inability of telecom operators to gain scale in European markets limits the long-term certainty required to source and make the significant investments needed to deliver reliable, super-fast, and future-ready connectivity to the continent.
European Commission President von der Leyen has recognised both the benefits that scale can bring to European businesses and the urgency of this situation, indicating in September 2025 that she is advancing the review of existing guidelines – a move we welcome.
To return Europe to a position where European markets are competitive and economically attractive with incentives to invest and innovate in the long run, the Merger framework – not only the Merger guidelines, but also the Remedies notice and the Merger Regulation – must be overhauled, with a view to adopting a more flexible, forward-looking, and future-proof approach to merger reviews.
CS: Assuming the rules get simplified, and market consolidation happens successfully, none of it will really matter if the EU doesn’t improve its digital network infrastructure. Are we lagging behind? Are we stimulating enough investment?
LT: Rolling out high-speed connectivity across the continent has required and continues to require significant investment from mobile network operators, and maintaining and improving this will only cost more as demand for connectivity increases.
In numerical and economic terms, we are being rapidly left behind not only by established major markets like China and the USA but by emerging ones too, where digital connectivity has been recognised as a key driver of growth and prioritised accordingly.
Recent GSMA research found that 85% of investment in the telecoms industry comes from mobile operators themselves, a heavy financial expectation that is not reflective of the benefit and value derived from the use of networks by other players, most notably Big Tech. This follows a decade where European operators have invested more than €500 billion, primarily in 5G deployment.
What the DNA needs to deliver above all else is a pro-investment approach to regulation, to foster an environment where mobile operators can demonstrate the long-term confidence required to unlock the level of funding needed to return Europe to a competitive position.
CS: We also need to protect infrastructure from physical and cyber threats. Is this something the DNA should also encompass?
LT: Europe’s security is directly and increasingly connected to its digital infrastructure, which is often the front line of defence. Physical and cyberattacks on Europe’s critical infrastructure have also increased, raising the cost of protecting telecoms networks. Put bluntly, an inability to close the investment gap and upgrade this critical infrastructure will leave Europe vulnerable, so it is vital the DNA delivers on its potential to simplify regulation and improve market conditions.
CS: How will consumers and businesses ultimately benefit from your vision for Europe’s connectivity?
We are already seeing how the true promise of 5G connectivity, based around 5G standalone service, is driving real economic impact and innovation in the markets – China, the USA, East Asia – that have already advanced this journey. Our vision is for a true digital society where everyone can benefit from high-speed and reliable connectivity to bring growth, security, and innovation to the whole continent.
In today’s fast-paced digital landscape, we cannot afford to slow down. Connectivity underpins every aspect of modern life, from enabling access to quality education and healthcare to powering remote work, digital services, and cutting-edge innovation.
It creates jobs and enables economies to move faster and more efficiently than ever before. Connectivity unlocks new opportunities, strengthens our economies, and empowers European consumers to stay competitive, secure, and more connected to the people, services, and opportunities that matter most in an increasingly dynamic world.
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