Final approval from the EU Council to the Gigabit Infrastructure Act which will replace the Broadband Cost Reduction Directive (BCRD) of 2014. The new law aims to simplify and accelerate the development of high-speed networks, such as fiber and 5G, with the aim of achieving Europe’s connectivity objectives and targets set out in the Digital Compass for this decade.
“The adoption of the law reflects our commitment to addressing administrative burdens and promoting the deployment of high-speed networks. This will allow our citizens to navigate faster and have a better digital experience using fiber or 5G,” he explains Petra De Sutter, Belgian Deputy Prime Minister and Minister of Public Administration, Public Enterprises, Telecommunications and Postal Services.
Gigabit Infrastructure Act, what does it provide
The new regulation also aims to reduce the unnecessarily high costs of building high-capacity networks, partly caused by licensing procedures. This last issue will be simplified through a mandatory conciliation mechanism between public bodies and telecommunications operators. The new legislation will also ensure greater transparency and ensure efficient planning for operators of public electronic communications networks.
To achieve better access to information society services by the public and businesses, the law on infrastructure giga it also addresses the creation of and access to physical infrastructure within buildings. Furthermore, the new law allows a certain degree of flexibility to Member States, for example by excluding critical national infrastructure. Finally, as the current retail price cap for regulated intra-EU communications will expire on 14 May 2024, the current limits of €0.19 per minute for calls and €0.06 for text messages are extended until 30 June 2032 to ensure protection, especially for vulnerable consumers.
The entry into force
The text will be published in the EU Official Journal in the next few days and will enter into force three days after publication. The new law will come into force 18 months after it comes into force, with some specific provisions applying at a later stage.
The background
The digital objectives on which the BCRD was based have been achieved or have become obsolete since 2014. A review was therefore necessary. The low returns on equity and high investment costs that prevail in the telecommunications sector have started to hinder progress towards achieving the 2030 digital targets of the Digital Decade policy agenda, with an investment gap of around €65 billion euros per year. The EU Commission, with Thierry Breton, commissioner for the Internal Market, presented the proposal for the law on infrastructure Gigabit in February 2023. Alin Mituta (Renew Europe/Romania) was the European Parliament rapporteur on this file and a provisional agreement was reached between the co-legislators on 3 February 2024.
