A public hearing on the proposalfor the Digital Networks Act (DNA) took place in the European Parliament before the Committee on Industry, Research and Energy (ITRE). On behalf of the Body of European Regulators for Electronic Communications (BEREC), Marko Mišmaš, Chair of BEREC and Director of AKOS, presented the organisation’s views on the proposal.
Mišmaš emphasised that the aim of the Digital Networks Act should be evolution, not revolution. Although the current framework is not perfect, BEREC believes it has contributed to significant achievements: improved connectivity, accelerated roll-out of fibre-optic networks, strong competition, affordable services and a high level of end-user protection.
“The success of the Digital Networks Act should not be measured by how much it changes the existing framework, but by whether it brings benefits to citizens, businesses and investors, whilst preserving the achievements of the existing framework,” emphasised Mišmaš.
According to him, BEREC supports the main objectives of the proposal, in particular the strengthening of the single market, the simplification of rules, and the promotion of investment, innovation and European competitiveness. However, he pointed out that the debate is not so much about the objectives as about the path by which they can be achieved in an effective, proportionate and sustainable manner.
The BEREC Chair then highlighted several key areas where, in the view of European regulators, the proposal presents significant opportunities, whilst also posing certain challenges.
In the area of radio spectrum management, BEREC welcomes greater clarity regarding its role in matters affecting market shaping in spectrum allocation. However, it points out that the proposed legal form of the act – a regulation rather than a directive – requires a carefully considered and sufficiently long transition period. Among the more challenging new features of the proposal are the unlimited duration of licences, the framework for assessing market-shaping measures, the shared use of radio spectrum, and the planned replacement of the existing peer review mechanism.
“Harmonisation makes sense where it brings clear benefits to the single market, reduces unnecessary fragmentation and improves regulatory predictability. In the case of spectrum, it would therefore be more effective to build on the existing peer review mechanism with common guidelines, (Peer Review), comparative methodologies and best practices, rather than replacing it with an entirely new, formal procedure,” emphasised Mišmaš.
Regarding the general approval and the proposed ‘single passport’ mechanism, BEREC noted that the objectives of simplification are understandable, but that the proposal, in its current form, does not clarify with sufficient precision the relationships between notification procedures, enforcement and supervisory powers, and the roles of the authorities involved. In practice, this could create additional uncertainty rather than simplification. BEREC therefore proposes, as a more proportionate solution, greater harmonisation of authorisation conditions, a binding common notification form across the EU, the digitisation of procedures, for example by establishing a single point of entry for notifications via an online platform, which would be managed by the BEREC Support Office on behalf of BEREC.
Mišmaš devoted a significant part of his speech to regulatory predictability and ex-ante regulation. According to BEREC’s assessment, predictability is one of the key elements of simplification. The regulatory framework must remain clear and stable: it must allow for deregulation where markets become competitive, whilst retaining effective tools for intervention where market failures still exist.
BEREC points out that the Digital Networks Act should provide as much clarity as possible directly in the legislative text and avoid excessive reliance on future implementing or delegated acts. Over-reliance on secondary legislation could create uncertainty for operators, investors and other stakeholders regarding their future obligations.
‘Regulatory predictability is in itself an important form of simplification. Stakeholders must be able to understand as clearly as possible from the legislative text what rules will apply and what obligations they can expect,” emphasised Mišmaš.
With regard to ex-ante regulatory measures and the obligations of operators with significant market power, BEREC highlighted that these must continue to be based on market analysis and tailored to specific competition issues and national or local circumstances. Mišmaš warned that an overly prescriptive approach could make ex-ante regulation more rigid and centralised.
“Effective regulation requires flexibility. Measures must address the competitive problem identified in the market, rather than a pre-determined regulatory model. A harmonised access product can be a useful tool, but it must remain just one of several options, not the default solution for the whole of Europe,” Mišmaš emphasised.
He also drew particular attention to the need to reduce overlaps between different regulatory frameworks. Operators are, in fact, facing an increasing number of obligations arising from telecoms regulation, cyber security rules, resilience requirements, consumer protection and other sector-specific regulations. Simplification should therefore involve reducing the duplication of requirements, a clearer division of responsibilities and preventing the same data from being requested multiple times through different reporting channels.
With regard to symmetric regulation, BEREC has emphasised that this remains an important tool for promoting the roll-out of fibre-optic networks and the efficient use of infrastructure. This is particularly important where infrastructure-level competition is not a realistic prospect, for example within buildings.
“In many cases, particularly within buildings, infrastructure competition is simply not a reality. There, symmetric access may be the most effective way to promote competition, the use of fibre and choice for users,” said Mišmaš.
With regard to universal service, BEREC pointed out that this remains an important tool for digital inclusion. However, in BEREC’s view, the proposal for the Digital Networks Act risks reducing national flexibility and raises questions regarding the implementation and financing of universal service. BEREC therefore proposes that Member States retain the option to address the challenges of affordability and digital inclusion themselves, whilst ensuring greater legal certainty regarding the roles of competent authorities and the application of universal service within the single market.
In conclusion, Mišmaš emphasised that BEREC remains at the disposal of the co-legislators to provide expert support during the further legislative process.
Further information on the public hearing is available on the European Parliament’s website.
