Riccardo Amati is joined by Innocenzo Genna, Lawyer Specializing in EU Technology to discuss about how the Digital Networks Act may reshape EU telecom regulation, investment incentives, and cross-border growth.
The Digital Networks Act aims to unify telecom rules, encourage investment in fiber and 5G, and foster cooperation between telcos and OTTs. Yet operators’ domestic-first strategies and divergent member-state infrastructure could limit its impact.
Europe’s Digital Networks Act (DNA) is being positioned as a defining framework for telecom regulation in the EU. “The DNA proposal still indicates the achievement of single market as an important objective. However, it does not provide for concrete measures to push the operators towards that objective, considering that operators are quite reluctant to do it because their business model is normally relying on the domestic market,” Innocenzo Genna, lawyer specializing in EU tech regulation, explained on the Mobile Ecosystem Forum Podcast Perspectives. “This means that it’s not sufficient to make some harmonization or reduce some cross-border obstacles to convince operators to start cross-border businesses. There should be something there which really incentivizes the cross-border activity.”
The DNA covers spectrum licensing, fiber rollout, net neutrality, private networks, and voluntary cooperation frameworks. Unlimited-duration spectrum licenses are intended to provide long-term certainty for 5G and fiber investment, while authorization requirements extend to cloud providers and CDNs. However, experts warn that regulatory certainty alone may not overcome operators’ domestic-focused business models. Fiber rollout targets also vary widely across member states, from advanced Nordic markets to legacy copper networks in Italy and Germany.
MEF’s journalist Riccardo Amati spoke with Genna, a recognized authority on EU telecom and digital policy. They discussed how the DNA could reshape Europe’s mobile ecosystem, what operators should monitor closely, and the practical steps needed to navigate the evolving regulatory landscape.
You can listen to the full podcast by clicking the dedicated section on this page. What follows below is a condensed version of the conversation.
How will unlimited spectrum licenses affect telcos?
Indefinite, unlimited licenses give telcos more certainty in capital-intensive markets like fiber and 5G. But such unlimited duration is revocable, and the authorities can intervene if conditions are breached or priorities change. How five-year reviews and revocation work will still need further clarification.
Will the DNA achieve a truly European single telecom market?
The DNA emphasizes the single market as an objective, but there are no concrete measures to push operators toward that goal. Most operators focus on their domestic markets, and reducing cross-border obstacles alone won’t incentivize them to offer permanent pan-European services.
How are private networks and cloud infrastructure affected?
The DNA now extends interconnection and authorization requirements to private networks—those used for data centers and cloud services. This reflects the market reality, where many digital services rely on converged infrastructure. Authorities may now supervise telecom-relevant cloud and CDN infrastructure, not just traditional networks.
Is voluntary cooperation between telcos and OTTs effective?
“The framework encourages dialogue without mandating fees, unlike previous ‘fair share’ debates. Its effectiveness will depend on whether parties pragmatically negotiate traffic management and cost sharing, or treat it as a new battleground for litigation. The mechanism is intentionally vague, leaving room for future developments.”
What advice should operators and policymakers follow?
Operators should monitor the legislative process closely, understanding that the Council and Parliament function differently from national parliaments. Representation through trade associations is often more effective than acting individually. For messaging apps or OTTs, clarifying whether and how the new rules apply is key, followed by engagement in consultation processes with regulators to avoid creeping obligations.
While regulatory stability and longer-duration spectrum licenses may encourage investment, the DNA’s impact on European competitiveness is nuanced. What’s the bigger picture?
European telcos are competing domestically, not globally. The narrative of competitiveness is understandable for cross-border internet services, but for telecoms, local market dynamics dominate.
Will the DNA fully harmonize Europe’s telecom market?
Operators remain reluctant to pursue cross-border businesses. The DNA doesn’t incentivize them strongly enough, so domestic-first strategies are likely to continue.
How should operators navigate spectrum and fiber investment?
Long-duration licenses reduce uncertainty, supporting investment in 5G and fiber. But operators need to watch for revocation clauses and align investments with national rollout realities.
How does the DNA impact private networks and cloud services?
Authorization extends to infrastructure supporting cloud, CDN, and intermediate networks. Authorities can now regulate these converged networks, which underlie many digital services.
Will voluntary cooperation frameworks replace mandatory fees?
These mechanisms may facilitate negotiation but are non-binding. They could evolve into soft law guidance, but the risk of a de facto fee regime is low under the current proposal.
What is your advice for operators and mobile ecosystem leaders?
Be ready for increased regulation. Conduct timely analysis, engage with authorities professionally, and participate in consultations. Representation through trade associations is crucial for influencing legislation effectively.
More Podcasts >