44 years ago, Europe came together to develop the world’s first standardised digital cellular network, later known as GSM. Much has changed since, and the focus is now on extending 5G, meeting rising data demand, and supporting new digital services.
Today, Europe has another chance to demonstrate leadership in mobile spectrum management. The European Commission’s proposed Digital Networks Act (DNA), published in January 2026, is a major regulatory overhaul designed to modernise and harmonise EU telecommunications law. While much of the framework falls short of the objective to innovate the sector, its spectrum provisions are a step in the right direction.
The offer
Mobile connectivity underpins Europe’s digital ambitions, and investment will grow where regulation is supportive. The DNA proposal shows some understanding of this in its spectrum measures, which include:
- Indefinite spectrum licences and automatic renewals
- Long-term spectrum management strategies and roadmaps
- A common, investment-focused, spectrum pricing methodology
- Early European Commission review of assignments and renewals
- Greater emphasis on sharing spectrum
Today, the EU trails global leaders in high-quality 5G, limiting its digital competitiveness. There are many reasons for this, including fragmented spectrum assignment conditions, poorly designed and expensive auctions and short licence terms, pushing up spectrum costs and constraining deployment. Indefinite licences, automatic renewals, and long-term planning all support more predictable network deployment across Member States.
The proposed reforms in the DNA can improve certainty at a time when over 500 licences expire within the next decade, giving operators confidence to invest in Europe’s digital future. However, the proposed transition period would leave over 50% of expiring licences outside the scope of automatic renewal principles, prolonging uncertainty and undermining the reform’s effectiveness. Applying the rules from day one of implementation would ensure the benefits are felt without delay.
Automatic low-cost renewals could increase network speeds by up to 23% and generate up to €75 billion in Europe’s GDP by 2035. Greater certainty in the DNA also strengthens the secondary market, enabling spectrum trading on commercial terms and promoting efficient use, competition and innovation.
In the past ten years, spectrum prices have tripled, even as per‑MHz revenues have halved in Europe, often due to non‑market factors. Recognising the burden of high spectrum costs and the risk of chronic underinvestment, the DNA adopts an investment-first approach to licensing and assignment.
A more consistent pricing approach, alongside the Commission’s proposed recommendation on a common pricing methodology and prioritisation of network deployment and quality commitments over fees, could help align incentives with long-term investment. It could also ensure pricing frameworks remain sustainable without undermining national sovereignty.
The DNA’s proposal to standardise licence conditions and award objectives across the EU can support more consistent and timely deployment of advanced networks across EU member states.
The proposals call for a mandatory EU single market spectrum procedure to replace voluntary peer review. This shift should foster cooperation without centralising authority, allowing Member States to retain national management. Striking this balance will ensure that spectrum decisions reflect local needs across Member States. These changes may also enable EU-wide spectrum assignments and authorisation for terrestrial and satellite services.
The DNA also looks at spectrum sharing and mandates it if underutilised. It further considers spectrum sharing by an EU spectrum ‘dynamic database’. While sharing could promote greater spectrum efficiency, there is a risk associated where it could infringe on the rights of primary licence holders and careful management is needed to protect these users from interference.
The proposal for harmonised, centralised authorisation of satellite networks and spectrum can help reduce fragmentation and streamline satellite regulation. The provisions include safeguards to protect mobile networks from interference caused by D2D satellite connectivity, which is vital as Member States consider authorising D2D services.
The way forward
Europe has a new opportunity to show the leadership it demonstrated in the GSM era by improving the way it manages spectrum. As the DNA moves through the legislative process, policymakers should work to preserve, and where possible strengthen, its spectrum proposals, from indefinite licences to more predictable pricing frameworks. Doing so will help deliver the connectivity, innovation and competitiveness that Europe’s digital ambitions demand.