EU Proposes Unlimited Radio Spectrum Licenses for Telecom Operators

EU's Digital Networks Act Overview

BRUSSELS, Jan 21 (Reuters) - Europe's telecoms operators will get a major boost under a European Commission proposal announced on Wednesday, allowing them to use radio spectrum for an unlimited duration, but their demand that Big Tech be required to help fund the cost of rolling out broadband went unheeded.

The Commission's proposal, known as the Digital Networks Act, is part of a revamp of telecom rules, which will need to be agreed to by EU countries and the European Parliament in the coming months before it can be implemented.

Giving operators longer spectrum licences and making licences renewable by default will increase predictability and consistency across the bloc, the EU executive said. Presently, radio spectrum licensing is granted for a minimum of 20 years.

Impact on Telecom Operators

The goal is to create full fibre coverage between 2030 and 2035 across the 27-country European Union. A senior Commission official said unlimited licensing of spectrum is a clear signal that the telecoms sector is worth investing in.

"High-performance, resilient digital infrastructure is essential in strengthening Europe's leadership in innovation, competitiveness and digital sovereignty," EU tech chief Henna Virkkunen said in a statement on Wednesday.

"Our goal is a digital environment where new technologies are readily available, affordable, and grounded in fair, trustworthy rules that benefit people," she said.

Regulatory Changes and Goals

The Commission will set out the duration of spectrum licensing, the conditions for the sale of the frequencies and a pricing methodology to guide national regulators during spectrum auctions, confirming a Reuters story.

Cooperation with Big Tech

Deutsche Telekom, Orange, Telefonica and Telecom Italia have long argued that Big Tech should pay a network fee because they make up a huge part of internet traffic and lobbied the Commission to issue an order.

However, the Digital Networks Act, instead of a fee requirement, proposed a voluntary cooperation mechanism between telecoms providers and tech giants such as Google, Netflix and Meta Platforms regarding the cost of rolling out digital infrastructure, confirming a Reuters story.

The Digital Networks Act allows governments to extend the 2030 deadline for replacing copper networks with fibre infrastructure if governments need more time for the transition.

(Reporting by Foo Yun Chee; Editing by Aurora Ellis and Inti Landauro)