The continent faces a once-in-a-generation opportunity to redefine the framework governing EU telecoms regulation

Europe’s digital future is at a critical crossroads. As the European Commission designs a potentially industry-altering Digital Networks Act (DNA), the continent faces a once-in-a-generation opportunity to redefine the framework governing EU telecoms regulation. With the right approach, the DNA could transform Europe’s digital landscape, giving its telecoms sector the stability and scale needed to compete on the world stage.

Connectivity powers everything from economic growth and innovation to education, healthcare and public safety. Last year mobile internet access accounted for 84% of all broadband connections.

Yet Europe 4G is Europe’s most-used mobile service. In comparison, China, 77% of connections are already 5G Standalone, while a quarter of Americans are already using it. Europe is being left behind. The DNA must change this trajectory, creating the conditions for Europe to modernise its infrastructure, attract sustained investment and restore its digital competitiveness.

Regulation fit for the digital decade

The DNA can succeed only if it simplifies the regulatory environment. Europe’s telecoms sector has struggled with an uneven set of national rules that make cross-border investment difficult. Equivalent services should follow equivalent regulation. Simplification would allow operators to achieve scale, lower costs and deploy networks faster – all of which will, in turn, make it a more attractive sector for investment.

Harmonisation across markets is important and the DNA can deliver it. Fragmentation is one of the biggest barriers to building a single, connected digital market in Europe. A consistent regulatory framework would reduce duplication, encourage cooperation and support fair competition. It will also make it easier for smaller countries to attract private investment and innovation.

Certainty around investment must sit at the centre of the new framework, chiefly by introducing predictable conditions for long-term planning, including stable spectrum licensing regimes. Such stability will give Europe’s telecoms sector the confidence to commit the billions required for 5G SA and eventually6G.

Re-evaluating the principles

The DNA arrives at a moment of much-needed reform. Many rules that govern Europe’s telecoms markets were written for a different age, when phone calls across traditional telecom networks defined connectivity. Today, cloud services, IoT systems and AI-driven applications dominate our networks. The DNA must align regulation the modern technologies that shape today’s digital society.

This means rethinking how competition policy interacts with network investment, how digital platforms and telecoms operators coexist, and how public policy can promote inclusion while encouraging innovation. The new framework must also be flexible enough to evolve as technologies and business models change.

Spectrum policy is clearly an area in which Europe needs to evolve. Access to spectrum should be predictable, affordable and based on long-term public value rather than short-term fiscal goals. A spectrum strategy that encourages investment would make networks more efficient and give Europe the capacity to support the future services enabled by 5G-Advanced, 6G and edge computing.

Shared responsibility

Delivering better connectivity will take more than regulation. It needs coordination between policymakers, regulators, investors and the wider technology ecosystem. Governments must provide the certainty needed for investment. Industry must innovate and collaborate. Consumers and businesses must feel confident about adopting safe digital services.

Connectivity is critical to achieving Europe’s broader social and economic goals: enabling digital inclusion, supporting public services, and strengthening resilience in times of crisis. It’s also essential for reaching climate and sustainability targets, through smarter infrastructure and greener, more energy-efficient systems.

Innovation is also benefiting from and driving the rollout of high speed, reliable connectivity. Other major economies are already using network slicing to explore opportunities in smart manufacturing, or bring autonomous vehicles onto the roads.

Europe used to lead the way in invention, particularly in tech and telecoms; it gave the world everything from the telephone to the world wide web. We should aspire to recapture that reputation, but we can only do so with a best-in-class digital ecosystem. The DNA can be the catalyst that brings these priorities together, ensuring the benefits of digital transformation ripple across every community and Member State.

The cost of standing still

The flip side of all this opportunity is that a failure to act decisively now would carry economic and social consequences. Emerging technologies such as AI, IoT, and edge computing depend on high-capacity, low-latency networks. Without reform, Europe risks slower innovation, reduced competitiveness, and a widening gap with other regions.

The impact would be felt across sectors. Businesses would struggle to adopt advanced digital tools. Public institutions would face growing demand without the infrastructure needed to support it. And people in rural or underserved areas would fall further behind, deepening existing digital divides and usage/connectivity gaps.

A turning point for Europe

The DNA is a defining moment for Europe’s digital evolution. It has the potential to give operators and innovators the stability to build the networks Europe needs for the decade ahead. The impact would be felt far beyond telecoms. Stronger networks mean better access to essential services, more efficient industries and a more connected society. Every sector gain when the infrastructure that underpins it is fit for purpose.

Europe has the capability and vision to lead. After clear, evidence-based reports from Enrico Letta and Mario Draghi last year, EU lawmakers have to work together to deliver the bold reform the bloc needs to unlock its true potential. The DNA must now deliver on that opportunity.