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Europe at a Crossroads: Scaling Up Telecoms and the Promise of the Digital Networks Act 

Monday 31 March, 2025

Europe at a Crossroads: Scaling Up Telecoms and the Promise of the Digital Networks Act 

On 27 March, the GSMA and POLITICO co-hosted a high-level event in Brussels to mark 100 days since the start of the new European Commission mandate. The event placed the spotlight on one of the most pressing issues facing the region: how to scale up Europe’s telecoms industry and the crucial role the upcoming Digital Networks Act (DNA) will play in that transformation. 

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Opening the event, Laszlo Toth, Head of Europe & CIS at GSMA, highlighted the fundamental yet often overlooked role of telecom networks in Europe’s digital ambitions. Despite being the backbone of digital infrastructure, telecom networks continue to be undervalued and face significant pressure. Mobile network operators (MNOs) are responsible for 85% of investments in mobile internet infrastructure, yet regulatory frameworks have not kept pace with industry needs. These outdated rules are hindering the investments necessary to drive growth and innovation. He emphasised that simplifying regulations and ensuring a fair and sustainable financial environment for operators must be at the heart of Europe’s digital strategy. As Europe competes on the global stage, connectivity can no longer be treated as a national issue—it must become a shared European priority. Toth underlined that the DNA, alongside reforms in key policy areas such as mergers and acquisitions and spectrum policy, presents a unique opportunity to reposition Europe as a leader in digital technology. 

During the panel discussion that followed, policymakers, regulators, and industry leaders explored the current bottlenecks constraining Europe’s telecoms sector and the transformative potential of the DNA. 

Renate Nikolay, Deputy Director General, DG CNECT in the European Commission, provided a status update. The Commission is not yet drafting the DNA; instead, it is in the crucial phase of conceptualising the framework and gathering evidence to assess its likely impact. This involves ongoing consultation with stakeholders at both technical and political levels to inform the direction of the reform. Nikolay emphasised that now is a critical window for stakeholders to provide input. She framed the DNA as a much-needed new deal on connectivity—one that considers technological advancements, resilience, security, and Europe’s growing focus on technological sovereignty. Notably, the DNA is expected to fully replace the existing Telecom Code, with simplification as a central objective. The Commission plans to present the DNA in the fourth quarter of 2025. 

From the industry side, Jakob Greiner, Vice President of European Affairs at Deutsche Telekom, welcomed the positive tone around reform, including signals from the recent Draghi and Letta reports. However, he cautioned against repeating past mistakes. He pointed out that previous telecom updates, particularly those implemented through directives, often led to gold-plating and delays in national implementation. Greiner called for a more streamlined regulatory approach, flagging specific areas, such as consumer rules and the ePrivacy directive, as overly burdensome. He argued that many of these rules should be simplified or removed altogether. For Greiner, the success of the DNA will hinge on addressing key enablers, such as competition policy, scale, and spectrum—core pillars of a truly single European telecoms market. He expressed hope that this time, the reform will be bold enough to deliver real change. 

Robert Mourik, Chair and Commissioner at ComReg and Chair of BEREC, echoed these calls for ambition. He argued that a simple review of the telecom framework would not suffice. What is needed is a step change—an overhaul that adds real value and considers wider frameworks, including competition and merger law. Mourik also discussed the importance of understanding the broader value chain within telecom companies, pointing out that areas such as marketing and operations must be part of the conversation if Europe is to build truly pan-European networks. He highlighted the benefits of country-level consolidation, provided that appropriate regulatory oversight is maintained to ensure fair outcomes for consumers. 

Representing the Council’s view, Aleksander Sołtysik, Counsellor for Telecom, Radio Spectrum, and AI at the Permanent Representation of Poland to the EU, noted that the Council is waiting on further analysis and reports from the Commission based on the DNA consultation. He reinforced the importance of reliable and secure connectivity, particularly in light of escalating geopolitical tensions and the increasing frequency of natural disasters. These developments underline the urgency of strengthening Europe’s communications infrastructure as a matter of strategic importance. 

One consistent theme throughout the event was clear: Europe stands at a turning point. The Digital Networks Act presents a unique opportunity to reimagine the future of connectivity in the region. But to truly seize that opportunity, the EU must act decisively—and all stakeholders must engage now, while the direction of the DNA is still being shaped. The next chapter of Europe’s digital future is being written, and what we decide today will determine the strength, security, and competitiveness of the networks we rely on tomorrow.