The Digital Networks Act: A New Framework for EU Connectivity and Investment
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On 21 January 2026, the European Commission published its proposal for the Digital Networks Act (“DNA”)[1], a new regulation intended to modernise and streamline the EU legal framework for electronic communications and connectivity networks, while strengthening digital resilience and security across the European Union (“EU”). Its publication initially set for December 2025 was delayed due partly to internal opposition (including from several groups of Member States).
The proposed DNA would merge four existing acts (the 2018 Electronic Communications Code (“EECC”)[2], the BEREC Regulation, the Radio Spectrum Policy Programme[3] and core parts of the Open Internet Regulation[4]) into a single directly applicable framework. It also aims to consolidate rules currently under the ePrivacy Directive into the new framework.
The DNA seeks to reduce national divergence created by transposition and interpretation and may simplify compliance for providers operating in multiple Member States—while also making changes “hit” faster once in force. This clear ambition for harmonisation explains its adoption as a regulation, rather than a directive, to address issues relating to fragmentation which the Commission flagged in its report on the functioning of the EECC published on the same day. This is a decisive step towards a more centralised EU model – in the spirit of the Draghi report recommendations – which will require Member States to cede some national discretion to the EU. This aspect of the proposal prompted coordinated opposition from a group of Member States at the end of November 2025, which argued that “considerable differences” between national markets required the legal flexibility of a directive.
The DNA promises to attract further controversy as it works its way through the EU parliamentary process and approval by EU governments, which typically takes up to two years. The initial proposals around the “fair share” debate – requiring large tech companies to contribute to network infrastructure costs – have been dropped, as expected. However, the DNA introduces a “voluntary conciliation” mechanism for IP interconnection issues, supervised by national regulatory authorities, which certain tech companies are concerned could ultimately lead to mandatory network fees. The draft has also attracted criticism from consumer groups and telco companies for its lack of ambition.
Many aspects of the existing framework are expected to remain the same. That includes the framework for imposing ex ante regulation, competition law-based access regulation and many end-user rights – though the DNA aims to recalibrate regulation by tightening national discretion with closer EU oversight, and to simplify consumer protection rights. It otherwise introduces a number of key new measures which we summarise below:
Harmonisation: Single Passport model, single EU-level authorisation regime for satellites, unlimited spectrum licences by default
The DNA introduces a ‘Single Passport’ authorisation, allowing operators to provide networks and services in various Member States by making a notification in just one Member State. (Articles 9-11). This seeks to further harmonise and simplify the existing authorisation regime and facilitate the deployment of more virtualised, centrally managed and/or software- or cloud-based networks across the EU.
To reflect the growing importance of satellite communications, the DNA introduces a single EU-level authorisation regime for satellite networks, services, and related radio spectrum, enabling EU-wide access supported by EU-level monitoring and enforcement (Title II (Satellite), Articles 36 and 39–45). Satellite operators and telecom operators partnering with satellite providers will need to monitor how EU authorisation conditions interact with national regimes, spectrum coordination, and security/resilience requirements.
The DNA also sets out a coordinated EU radio spectrum strategy with investment-friendly rules on assignment duration and licence renewal, including rights of use that are, in principle, of unlimited duration (Articles 13, 18, 24-25, 31). The proposal’s preferred policy direction is unlimited licence duration by default. It states that rights of use for radio spectrum should “in principle [be] granted for an unlimited duration” with periodic reviews, not earlier than every 20 years for certain wireless broadband rights. Where a limited term is used, the proposal provides for at least 40 years for harmonised spectrum used for wireless broadband services, subject to defined exceptions. Public reporting also notes this as a key investment-predictability measure.
The practical impact of this is that mobile operators and infrastructure investors may see improved investment certainty and financeability for long-horizon 5G/6G roll-outs. M&A and spectrum trading strategies may shift as long-term (or indefinite) licences change asset valuation and competitive dynamics. The proposal also includes tools for authorities to address security/resilience concerns around spectrum transfers, including where third-country influence is relevant.
Simplification
The DNA aims to cut the administrative burden for providers and authorities - especially through the streamlined and digitised notification procedure to the Body of European Regulators for Electronic Communications (“BEREC”). (Article 10-12)
Common templates and guidelines from BEREC aim to align procedures and reporting across the Union. National regulators should not require additional documents beyond a BEREC template, and providers should be able to notify in any EU official language or at least English, supported by online notification (Articles 11, 172). It practically means that multi-country operators and new entrants could benefit from more standardised notification processes and potentially lower administrative friction.
The proposal also introduces a cross-border dimension: sanctions for serious breaches could, in exceptional cases, affect the right to provide networks/services across multiple Member States. In practice it means that a serious compliance failure in one place could have wider EU repercussions depending on how the “Single Passport” mechanism evolves in the legislative process.
Copper switch-off: structured transition to fibre with a long-stop date
The DNA seeks to enhance the EU’s competitiveness by incentivising long-term investment and innovation, including the deployment of next-generation technologies such as 6G. This objective is reinforced by the EU’s transition to a full-fibre infrastructure to ensure high-quality connectivity for citizens and businesses. The DNA provides for national transition-to-fibre plans and a structured, area-based copper switch-off, subject to defined conditions, user safeguards, proportionate exemptions, NRA oversight, and a 2035 backstop (Articles 53–61).
Based on this, to the extent they are not already doing so, fixed network operators should start mapping copper footprints, customer migration plans, wholesale product changes and “critical services” dependencies (e.g., alarms, lift lines, healthcare devices). Alternative operators / access seekers should anticipate changes in wholesale access remedies and migration obligations in copper areas as fibre coverage improves. Enterprises and public sector customers should plan for contract and technical migration (CPE replacements, resilience, SLAs, and business continuity) well ahead of 2035.
Strengthening resilience and preparedness
The DNA establishes a Union Preparedness Plan for Digital Infrastructures to enhance coordinated resilience and crisis response, setting out clear roles, data-collection timelines, and cooperation with the European Union Agency for Cybersecurity (“ENISA”) and European Cyber Crisis Liaison Organisation Network (“EU-CyCLONe”) (Articles 4–8).
The DNA also strengthens obligations around emergency communications and public warnings, and links the authorisation framework to cybersecurity and ICT supply‑chain requirements, including alignment with the evolving Cybersecurity Act (Articles 5, 106–108; Article 9(4)(d); Article 20(2)(d)).
Stronger EU-level coordination and a new institutional set-up
The DNA strengthens EU-level coordination and proposes that the BEREC Office will be replaced by an “Office for Digital Networks” (ODN) to support expanded tasks and a reinforced consistency mechanism.
Start preparing early
Although the DNA is only a proposal and will go through the European Parliament/Council legislative process, companies can act now:
- Impact assessment: identify which business lines are affected (fixed, mobile, wholesale, satellite, cross-border services, enterprise connectivity).
- Copper-to-fibre readiness: map copper dependencies, end-user migration risk, and contractual change points (wholesale + enterprise).
- Spectrum strategy refresh: reassess valuation, renewal assumptions, financing structures and transfer restrictions under the new duration model.
- Compliance and governance: prepare for more harmonised authorisation conditions and potential cross-border enforcement consequences.
- Engagement and advocacy: key provisions (e.g., copper switch-off conditions/exceptions, spectrum review triggers, scope of ePrivacy consolidation) are likely to be heavily debated—early participation can shape outcomes.
What does this mean for the UK?
There is yet to be a formal response to the publication of the draft DNA from either the UK Government or Ofcom. The existing UK regulatory framework is firmly anchored in the EECC, which the UK Government committed to implement prior to Brexit. There has been no indication to date of any intention to revisit existing regulation in light of the DNA (or otherwise). The UK has been following its national agenda for a number of years, including with its ambition for nationwide gigabit coverage by 2032, the Shared Rural Network and the Telecommunications (Security) Act 2021 which came into force in 2022. It is currently reviewing existing legislation based on the EU NIS Directive (which was superseded by NIS2 post Brexit), to increase UK defences to cyber-attacks, with the Cyber Security and Resilience Bill.
It is possible that the UK will adopt a ‘wait and see’ approach, to see whatever measures end up in the final DNA proposal have a positive impact on the industry or related sectors. So far the UK has arguably played the leading role, by allowing the Vodafone/Three merger to proceed subject to novel commitments based on network investment. Many telco operators and several EU countries are viewing it as a possible blueprint for consolidation in their respective markets. In the interim, without any planned revision, the divergence between EU and UK regulatory frameworks is likely to increase, complicating the operational and compliance aspects of global tech and telco businesses.
For more information on the Digital Networks Act, please contact your CMS client partner or these CMS experts.
This article is co-authored by Thomas Samuel, Trainee Solicitor.
[1] Proposal for a Regulation for the Digital Networks Act (DNA) | Shaping Europe’s digital future
[2] EUR-Lex - 02018L1972-20241018 - EN - EUR-Lex
[3] EU radio spectrum policy for wireless connections across borders | Shaping Europe’s digital future