Milan: Europe’s telecoms operators are reading the Union’s planned overhaul of communications rules as an invitation to consolidate, reviving a long-running debate over whether bigger networks mean better ones. The Digital Networks Act, proposed by the European Commission in January, would tear up much of the existing telecoms rulebook and replace it with a single, directly applicable framework. For an industry that has spent years complaining of fragmentation across 27 national markets, the prospect of fewer rules and larger scale has obvious appeal.
The proposal is sweeping. It would merge four pillars of current law, the Electronic Communications Code, the regulator-coordinating BEREC Regulation, the radio spectrum programme and core parts of the open internet rules, into one instrument, and pull in elements of privacy law besides. A central feature is a so-called single passport, letting an operator notify its activity in one member state rather than navigating 27 separate authorisation regimes. The plan also reshapes spectrum policy, proposing licences of effectively unlimited duration by default to give carriers the long horizons they say heavy infrastructure investment requires.
It is the consolidation question, more than the technical plumbing, that has set the industry talking. Operators argue that Europe’s market is too splintered to generate the returns needed to fund fibre and next-generation mobile networks, and that mergers are the natural cure. Many point across the Channel, where regulators allowed a major mobile tie-up to proceed on the condition that the combined company invest heavily in its network, as a template that European authorities might emulate. Several governments are said to view that model with interest.
The counterarguments are equally well rehearsed. Competition specialists warn that consolidation tends to lift prices, thin out consumer choice and raise the barriers facing smaller, more innovative entrants. The tension is structural and unlikely to be argued away: the scale that funds investment is the same scale that reduces the number of players, and regulators have spent two decades trying to hold the two goods in balance. Whether the new framework tilts that balance toward investment or toward competition is the fight now opening.
None of this is settled. The Commission’s text now passes to the European Parliament and the Council, where telecoms operators, consumer groups, smaller challengers and national regulators will all press their cases, and the institutions have set themselves until late 2027 to land an agreement. The direction of travel is clear enough, toward a more unified and investment-friendly market. The harder question, who benefits when the networks grow larger, will be contested every step of the way.




