The European Commission's overhaul of broadband rules, known as the Gigabit Infrastructure Act (GIA), is expected to be completed during EU negotiations on February 5, according to the lawmaker in charge of the issue in the European Parliament.
The GIA, proposed in February 2023, is part of a commission initiative to accelerate the deployment of high-capacity networks such as 5G and fiber. The rules also include ways to standardize permit-granting procedures for deploying or upgrading networks across the bloc. Currently, telecom rules are relatively fragmented across the EU due to national competence. This means that each member state retains authority over its own telecommunications policies and regulations, resulting in a patchwork of rules and standards across the EU. Consequently, telecom operators and service providers often encounter significant variations in regulatory requirements, licensing procedures, spectrum allocation, and consumer protection measures when operating across different EU countries.
“We exchanged views on topics such as the intra-EU calls and the entry into application. I am confident that we can reach an agreement in the next trilogue," said Romanian liberal lawmaker, Alin Mituţa.
Regulatory Landscape Could Hinder 5G Development
Despite the increasing demand for high-speed internet, the adoption of these networks remains low in Europe, particularly in rural areas. ETNO, a telecom lobby group, is skeptical that the proposed law will effectively accelerate the 5G rollout.
ETNO's Deputy Director-General, Alessandro Gropelli, addressed the media, stating, “If cost-reduction measures are watered down and unwarranted intra-EU call regulation is introduced, then we expect that this law will directly result in less 5G and fiber investment.”
One potential reason for reduced investment in 5G and fiber infrastructure is the increased financial burden imposed on telecom operators. If cost-reduction measures are weakened or eliminated, operators may face higher operational costs, making it more challenging for them to allocate resources towards network expansion and upgrades. Additionally, the introduction of unwarranted regulations regarding intra-EU calls could further strain operators' financial resources and deter them from investing in new technologies and infrastructure.
Furthermore, uncertainty and regulatory burdens introduced by the proposed law may create a disincentive for telecom operators to invest in 5G and fiber infrastructure. Operators require a stable and predictable regulatory environment to make long-term investment decisions. If the regulatory landscape becomes more complex or unpredictable, operators may hesitate to commit to large-scale investments in 5G and fiber networks, potentially slowing down the rollout of these critical technologies.
