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BRUSSELS, BELGIUM – The Council of the European Union has adopted the gigabit infrastructure act today, aiming to ensure faster deployment of digital network infrastructure across Europe. This new law will replace the 2014 broadband cost reduction directive (BCRD) and is designed to simplify and accelerate the roll-out of high-speed networks, such as fibre and 5G.
Belgian Deputy Prime Minister and Minister of Public Administration, Public Enterprises, Telecommunication, and Postal Services, Petra De Sutter, stated, “The adoption of the gigabit infrastructure act reflects our commitment to tackle administrative burden and boost the roll-out of high-speed networks. This will allow our citizens to surf faster and have a better digital experience using fibre or 5G.”
The new regulation also aims to lower the high costs of deploying high-capacity networks, partially caused by permit-granting procedures. These procedures will be simplified through a mandatory conciliation mechanism between public sector bodies and telecom operators. The new legislation will further provide more transparency and ensure efficient planning for operators of public electronic communications networks.
The gigabit infrastructure act also addresses deployment and access to in-building physical infrastructure, aiming to achieve better access to information society services by the public and enterprises. The new law allows some degree of flexibility to member states, such as carve-outs for critical national infrastructure.
Finally, the current caps of €0,19 per minute for calls and €0,06 per SMS message are extended until 30 June 2032 to ensure protection, especially for vulnerable consumers, as the present retail price cap for regulated intra-EU communications will expire on 14 May 2024.
The text will be published in the EU’s Official Journal in the coming days and enter into force three days after this publication. The new law will apply 18 months after its entry into force with some specific provisions applying at a later stage.
The digital targets on which the BCRD was based have either been reached or become obsolete since 2014. Other factors have made its revision necessary as well. Low returns on equity and high investment costs that prevail in the telecom industry have started to derail the progress to reach the 2030 digital targets of the digital decade policy programme with an investment gap of around €65 billion annually.
The Commission, with Thierry Breton as the commissioner for the internal market, submitted the proposal for the gigabit infrastructure act in February 2023. Alin Mituta from Renew Europe was the European Parliament’s rapporteur on this file, and a provisional agreement between the co-legislators was reached on 3 February 2024.
