The Government urges stronger regulation and effective competition, considering that the European framework should be seen as a success
Towards a strong and competitive digital ecosystem in Europe
On 20 May 2025, the Government of the Netherlands published a “non-paper” discussing how Europe can build a strong and competitive digital ecosystem – and essentially offering its input to discussions around reforming telecoms regulation and reflections on the recommendations made in the Letta and Draghi reports. According to the Government, the European telecoms framework has in many respects been a success story, with affordable retail prices and competitive pressure (especially from new entrants) that has spurred investment. However, while progress is being made towards the 2030 Digital Decade targets, world class 5G and fibre coverage is “only a starting point”. With Europe facing important strategic challenges in the context of the geopolitical situation and key technological dependencies, steps must be taken to develop a truly single market for telecoms, all the while avoiding unnecessary burdens for industry.
The EU’s single market policy should not seek to create a small number of cross-border telecoms networks
To do so, the Dutch Government considers it vital that policymakers ensure that the same rules apply everywhere within the EU and that networks work seamlessly across the bloc. It does not, however, believe that the goal of single market policy is to build a handful of very large pan-European telecoms networks (as favoured in the EC’s White Paper), adding that challenges relating to fragmentation and scale can be addressed by harmonisation and interoperability, which reduce the need for operators to merge. In the context of the forthcoming Digital Networks Act (DNA), the Government calls upon:
The EC to consider whether the EU could adopt “strict maximum harmonisation” (putting an end to ‘gold plating’);
The EC, Member States and relevant stakeholders to take stock of and then address the main regulatory bottlenecks resulting from a lack of harmonisation;
The EC to investigate whether additional requirements are needed to support permanent roaming in the context of emerging applications, such as the Internet of Things (IoT); and
The Radio Spectrum Policy Group (RSPG) to identify opportunities for Member States to further optimise co-operation on spectrum policy within current structural and governance frameworks.
M&A might benefit certain larger operators but could harm end users and infrastructure quality, as well as Europe’s overall competitiveness
The Government also considers it essential that the sectoral framework maintains a strong focus on effective competition as the main driver of investment and of affordable, high quality services. To that end, wholesale access rules and end user welfare should remain at the heart of European telecoms regulation. The non-paper states that while a move towards a more oligopolistic market (with less competition and higher prices) might be attractive to larger European operators, it would harm the region’s consumers and business users, infrastructure quality, innovation and ultimately its competitiveness – reflecting a recent joint statement from six European competition authorities while taking a different stance to Draghi in particular. The Government adds that a resilient, secure, reliable and sustainable European digital infrastructure is a top priority, and that it appreciates the EC’s commitment to this, in close cooperation with Member States.
The Dutch Government considers it crucial that the EC and Member States priority computing resources alongside connectivity
Recognising the links between telecoms networks and services and the wider digital infrastructure ecosystem, the Dutch Government highlights the importance for the EU of not only prioritising connectivity but also the development of computing resources, and having the two combine to meet the requirements of AI-powered applications. Rather than seeking to deliver this vision by trying to emulate US hyperscalers, Europe should turn its lack of “extremely large, monolithic and closed ecosystems into a competitive advantage” by creating an “open, interoperable and federated” alternative made up of domestic players of all sizes that would contribute to the region’s resilience and digital sovereignty. Stating that this is not something that can be imposed solely through adjustments to the telecoms framework, the Government has four main requests:
The EC, Member States and, where appropriate, financial institutions such as the European Investment Bank (EIB) explore the possibility of facilitating large scale investment in cutting-edge cloud and connectivity infrastructure through ambitious public-private partnerships;
The EC and Member States to build upon the achievements of IPCEI CIS to establish a large, open and federated European cloud infrastructure;
The EC facilitates cooperation among industry players to integrate distributed computing resources into 5G (and 6G) networks; and
The EC and Member States promote and coordinate the development of cutting-edge applications around smart connected devices and AI to stimulate demand and boost innovation.
