Podcast: Decoding the Commission’s Digital Networks Act

In this podcast, Amit Nagpal, Partner at Aetha Consulting, speaks to PolicyTracker editor Laura Sear about the spectrum-related proposals included in the draft of the Digital Networks Act (DNA).

Nagpal says the proposal is not a spontaneous initiative but the result of various reports highlighting the fragmentation of Europe’s telecoms landscape compared to the more consolidated US market. The European Commission wants to harmonise regulations to foster a more competitive environment, encouraging larger pan-European telecoms firms to emerge.

One of the most discussed aspects of the DNA is the introduction of perpetual spectrum licences. Traditionally, mobile spectrum licences have lasted for specific time periods. Mobile network operators say this is a problem for them as it creates uncertainty over investments when those licences come up for renewal.

Perpetual licences could eliminate this uncertainty, Nagpal says, enabling operators to invest confidently in upgrading their infrastructure, such as by rolling out 5G. It could also enable operators to leverage their spectrum as collateral for financing, akin to securing a mortgage on a property.

While regulatory changes are crucial, the DNA’s success will depend on market demand. Nagpal notes that demand for 5G has not matched initial expectations so far.

Listen to the full episode for free below, or find us on your favourite podcast platform – just search for “PolicyTracker”.