European Commission Launches Exploratory Consultation on the Future of the Electronic Communications Sector and its Infrastructure

On 23 February 2023, the European Commission (Commission) launched an exploratory consultation on the future of the Electronic Communications sector and its infrastructure. Electronic communications services are provided, in exchange for payment, through electronic communications networks. Such services include internet access services, interpersonal communications services, and services used for sending signals (e.g., transmission services). The Commission’s objective is to gather feedback on how the increased demand for connectivity and technological advances could affect the European Union’s future developments and needs. In addition to the consultation, the Commission announced two other initiatives, the draft Gigabit Recommendation and proposal for a Gigabit Infrastructure Act, which also aim to address the availability and accessibility of networks for EU citizens and businesses. 

Through the consultation, the Commission aims to identify the types of infrastructure needed for the European Union to stay ahead of technological progress. Additionally, stakeholders will be able to submit their assessment on how best to secure investments to support infrastructure developments. 

In that vein, the consultation serves as an important channel where stakeholders can provide their views on the issue of contributions to the investments in connectivity infrastructure. Currently, European providers of electronic communication networks and services claim that they have a low return on investment and are affected by a decreasing market valuation, and, as a result, their future network investments are threatened. This specific point is included in the consultation questionnaire, which is structured along four main sections:

Technological and Market Developments

Views on the impact on future networks and business models for electronic communications can be provided in the response to this first set of questions.

Fairness for Consumers

Here, the Commission addresses the affordability and availability of broadband offers.

Barriers to the Single Market

In this section, the Commission inquires on the viability of full integration of the single market for electronic communications.

Fair Contribution by All Digital Players

In the final set of questions, stakeholders have the opportunity to submit their opinion on a potential mandatory contribution from digital players that rely on networks to deliver content, thus increasing network traffic. 

The last section will be the most debated and controversial, and it has been on the radar of the industry (both telecom and digital companies) and politicians in Brussels for some time now. 

The consultation, which is open for 12 weeks—until 19 May 2023—is a much needed opportunity for industry players whose business is directly or indirectly linked to the Electronic Communications sector and its infrastructure, to provide their views on issues of relevance at an early stage in the policymaking process. Following the consultation, the Commission will report on the results and might take actions that are likely to affect the Electronic Communications sector and the relationship between network operators and users. 

K&L Gates’ Public Policy and Law practice in Brussels advises international clients on both current and upcoming EU legislation, including advocacy and interaction with the authorities. It regularly supports clients responding to consultations and drafting regulatory submissions.