The European Commission has just unveiled its proposal for the Digital Networks Act (DNA). The DNA marks a fundamental shift from regulating traditional “electronic communications” to a broader, cloud-integrated ecosystem of “digital networks”.

In a nutshell: The DNA replaces the fragmented framework of the 2018 Electronic Communications Code (EECC) with a directly applicable Regulation. Unlike the EECC, which was a Directive requiring national transposition, the DNA applies immediately and identically across the EU. Its goal is to end the fragmentation of the EU’s 27 national markets to create a “Single Market” for connectivity by harmonizing authorization rules, centralizing spectrum management, and formally recognizing the convergence of telecommunications, cloud, and AI.

If your company provides cloud services, AI infrastructure, satellite connectivity, or cross-border digital communication tools, the DNA is no longer a peripheral concern. It is a core compliance and strategic priority.

Market Access: The “Single Passport” Procedure

The most significant and potential operational benefit for international providers is the Single Passport procedure (Art. 10 DNA). Currently, a provider wishing to offer services across all 27 EU Member States must navigate 27 different notification regimes and potentially over 1,000 varying national conditions.

Under the DNA:

  • One Notification: International providers wishing to operate in multiple EU Member States will only need to submit a single notification to one national regulatory authority. This notification grants the right to provide services in all EU Member States listed in the notification.
  • Reduced Friction: This generally reduces the administrative burden, subjecting providers to a streamlined, EU-wide set of rules rather than a patchwork of national conditions. However, it is also a new burden for some markets, where it introduces a mandatory notification requirement that has not been there before (e.g., in France).
  • Centralized Oversight: A new Office for Digital Networks (ODN), transformed from the current BEREC Office, will maintain a central database of all notifications.

Strategic Autonomy: Centralized Satellite & Spectrum Rules

The DNA takes bold steps to centralize resources that are critical for EU strategic autonomy.

  • EU-Level Satellite Authorization: Satellite connectivity is emerging as a cornerstone of the DNA. The proposal introduces a centralized EU-wide authorization (Art. 39 DNA) granted by the European Commission, replacing disparate national processes for satellite networks and spectrum use. Once a EU authorization is granted, no national authorization is required, allowing for immediate pan-European service provision. However, operators should note that they will be subject to EU-level spectrum fees and administrative charges to co-fund the ODN.
  • Harmonized Spectrum Management: To close the gap in mobile network quality, the DNA introduces indefinite license duration as the principle, with a mandatory minimum of 40 years where limited terms are justified (Art. 24 DNA). This is designed to ensure investment predictability and facilitate the rollout of advanced 5G and 6G networks.

The Infrastructure Mandate: The End of Copper

In a move that departs from the EU’s historical stance on technology neutrality, the DNA mandates a structured and orderly switch-off of legacy copper networks by 31 December 2035 (Art. 54 DNA).

  • The “Fibre-Only” Justification: The European Commission argues that fibre-to-the-home (FTTH) is the most future-proof and energy-efficient technology. While this limits the freedom to conduct business on legacy infrastructure, the legislator deems it justified by environmental and economic benefits.
  • Safeguards: To mitigate the impact, the switch-off is conditional. It generally requires 95 % of premises passed by a fibre network and the availability of affordable retail alternatives in a given area before the switch-off is triggered (Art. 57 DNA). Exceptions are allowed only where fibre deployment is not economically viable and no adequate alternative exists.

“Fair Share” and Access Regulation: What’s In and What’s Out

  • No “Fair Share” Tax: Contrary to the push by some telecom incumbents, the draft DNA does not include a mandatory “fair share” payment or direct traffic-based contribution from internet companies (CAPs) to telecom operators. Instead, the DNA shifts the focus to “Ecosystem Cooperation” (Art. 191 DNA). BEREC will publish guidelines to facilitate technical and commercial cooperation, and a new facility for voluntary conciliation will be introduced to help parties reach agreements (Art. 192 DNA).
  • Modernized Access Obligations: The Significant Market Power (SMP) regime remains, but NRAs must now prioritize EU harmonized access products (e.g., specific wholesale fibre products) before imposing specific national remedies (Art. 81 DNA). Complex and rarely used provisions regarding co-investment and functional separation have been removed to simplify the framework.

The Convergence Trap: Are You Now a “Network Provider”?

The DNA explicitly moves beyond “pipes” to “Digital Networks” that are “cloud- and AI-based” (recital 16). While the Commission claims it does not seek to regulate cloud services directly, the line is blurring. The draft DNA targets the “extended connectivity ecosystem” (recital 2). If your AI platform or Cloud service integrates deeply with network infrastructure for low-latency delivery (e.g., edge computing), you may find yourself pulled into the DNA’s scope regarding resilience, security, and interoperability.

Resilience and “Strategic Autonomy”: The New Red Flags

In a climate of heightened geopolitical risk, the draft DNA introduces a “Union Preparedness Plan for Digital Infrastructures” (Art. 6 DNA).

  • Supply Chain Scrutiny: The Act emphasizes the need to address ICT supply chain risks, particularly for 5G, subsea cables, and “critical network segments”.
  • Interoperability Mandates: Interoperability requirements can be imposed on number-independent messaging services if they reach a “significant” mass and threaten end-to-end connectivity goals (Art. 68 DNA).

Full Harmonization of End-User Rights

Finally, the DNA introduces full harmonization for end-user rights to overcome the regulatory patchwork created by the previous Directive-based framework. By applying identical rules across the EU for contract information (Art. 95 DNA), duration (Art. 97 DNA), and switching (Art. 100 DNA), the draft DNA intends to significantly reduce administrative and compliance costs for providers operating in multiple Member States.

Timeline and Next Steps

Now that the European Commission has formally adopted the proposal (on 21 January 2026), the legislative process shifts to the Ordinary Legislative Procedure. This means the text is no longer a “draft” internal to the Commission but a formal legislative proposal that must be debated and approved by both the European Parliament and the Council of the EU. After its adoption the DNA is intended to enter into force 20 days after publication, with full application six months later with specific transitional periods (up to 36 months) for certain provisions, such as those for satellite authorization.

Conclusion: The Digital Networks Act is a double-edged sword. It offers a much-needed “Single Passport” and centralized satellite authorization for scaling, but it also mandates the retirement of copper and brings tech infrastructure under a tighter, more securitized regulatory umbrella. For international companies, the “regulatory cost of doing business” in Europe just evolved.

Further information

The European Commission has published additional documentation with the draft: