Brussels, 21 February 2024
Today, the Commission presented a set of possible actions to foster the innovation, security and resilience of digital infrastructures. The future competitiveness of Europe’s economy depends on these advanced digital network infrastructures and services, since fast, secure, and widespread connectivity is essential for the deployment of the technologies that will bring us into tomorrow’s world: telemedicine, automated driving, predictive maintenance of buildings, or precision agriculture.
This digital connectivity package aims to start a discussion on concrete proposals with stakeholders, Member States and like-minded partners on how to shape future EU policy action with a view to achieving a consensus:
- The White Paper on “How to master Europe’s digital infrastructure needs?” analyses the challenges Europe currently faces in the rollout of future connectivity networks, and presents possible scenarios to attract investments, foster innovation, increase security, and achieve a true Digital Single Market.
- The Recommendation on the security and resilience of submarine cable infrastructures presents a set of actions at national and EU level aimed at improving submarine cable security and resilience, through a better coordination across the EU, both in terms of governance and funding.
The EU should foster a vibrant community of European innovators, advancing the development of integrated connectivity and collaborative computing infrastructures. To reach this goal, the White Paper envisages the creation of a “Connected Collaborative Computing” Network (“3C Network”) to set up end-to-end integrated infrastructures and platforms for telco cloud and edge, which could be used to orchestrate the development of innovative technologies and AI applications for various use cases. Such collaborative approach could be prepared via the set-up of large-scale pilots or a possible new Important Project of Common European Interest (IPCEI) in the computing continuum.
It is also essential to better leverage synergies between existing initiatives, such as the IPCEI on Next Generation Cloud Infrastructure and Services, and funding programmes such as the Connecting Europe Facility and Digital Europe. This could include a possible coordinating role for the Smart Networks and Services Joint Undertaking (SNS JU) to support the creation of a collaborative connectivity and computing ecosystem.
Moreover, the EU must realise the full potential of the digital single market for telecoms, by considering measures to ensure a true level playing field and to rethink the scope of application and objectives of its current regulatory framework. This reflection should take into account the technology convergence between telecoms and cloud, which are nonetheless subject to different regulatory frameworks, as well as the need to ensure all operators investing in digital infrastructure can benefit from the necessary scale to undertake massive investments. This could entail a more harmonised approach to authorisation procedures of telecoms operators, a more integrated governance at Union level for spectrum and possible changes in wholesale access policy. The Commission may also consider measures to accelerate the copper switch-off by 2030, and to foster the greening of digital networks by improving their efficiency.
To protect Europe’s network and computing infrastructure, an essential element of our economic security, the EU should incentivise the deployment and enhance the security and resilience of strategic submarine cable infrastructures. Building on the Recommendation adopted together with the White Paper, a joint EU governance system may be considered in the longer term, together with a review of available instruments designed to better leverage private investments to support Cable Projects of European Interest (CPEIs).
As an immediate action responding to calls from Member States and stakeholders, the Recommendation seeks to improve coordination within the EU, for instance by assessing and mitigating security risks, establishing a Cable Security Toolbox, and streamlining procedures for permit granting. Moreover, to support the follow-up of the Recommendation, the Commission is setting up the Submarine Cable Infrastructure Expert Group, composed of Member States’ authorities.
Next Steps
The Commission launched today a public consultation on 12 scenarios set out in the White Paper. The consultation will close on 30 June 2024. The submissions will be published and will contribute to the future policy actions.
Background
The EU has already taken several actions to foster the transition of traditional connectivity networks towards the infrastructures of the future:
- On 23 February 2023, the Commission launched a broad exploratory consultation on the future of the connectivity sector and its infrastructure, whose results were published in October 2023.
- Together with the consultation, the Commission also presented the Gigabit Infrastructure Act (GIA), for which a political agreement was found on 5 February 2024, one year after the proposal. The GIA introduces a set of actions to simplify and speed up the deployment of very high-capacity networks reducing the administrative burden and the cost of deployment.
- The agreement came at the same time as the adoption of the Recommendation on the regulatory promotion of gigabit connectivity (Gigabit Recommendation), which provides to National Regulatory Authorities guidance on how to design wholesale access remedy obligations for operators with significant market power.
- Furthermore, the EU has taken measures to strengthen our backbone connectivity through, for example, Global Gateway Partnerships, which ensure high-quality connectivity with all parts of the Union, including the outermost regions, islands, Member States with coastlines, and overseas countries and territories. The Global Gateways partnership, funded through CEF, supports key infrastructures such as submarine cables.
For More Information
Quote(s)
In Europe we still have 27 national telco markets with different network architectures, different levels of network coverage, different national spectrum management, and different regulations. This fragmentation is a missed economic opportunity. With the White paper we have identified various policy solutions to help the creation of a Single Market for Telcos. This will help since we need a digital infrastructure that provides secure, fast, and reliable connectivity – to everyone, everywhere in Europe.
Digital network infrastructures are key for a competitive and resilient Europe. The White Paper we are presenting today is laying the foundations for a future Digital Networks Act focused on three pillars: investment, regulatory framework, and security. We need to create a level playing field for a true Digital Single Market to unlock the investment needed to build the digital network infrastructures of tomorrow.
Questions & Answers: Connectivity package
Brussels, 21 February 2024
What are the challenges for the future of connectivity?
The White Paper identifies a number of challenges for the future of connectivity:
- Technology challenges: Rapid developments in communications and computing technologies are giving rise to new business models and network applications. They require a continuous exponential increase in data processing, storage, and transmission, but also in technology capacity.
- Investment needs: Europe needs substantial and coordinated investment of more than €200 billion from the private and public sector to ensure the roll-out of high-capacity digital networks, which will help us meet the targets set in the2030 Digital Decade Policy Programme. Moreover, the successful transformation of leading telecom operators into network and cloud service providers would require additional significant investment capacities.
- Lack of a fully integrated single market for telecoms: there are currently 27 national telecoms markets in the EU with different supply and demand conditions, network architectures, coverage levels of very high-capacity networks, regulatory approaches on procedures, national spectrum authorisation procedures, different (partly harmonised) regulatory approaches.
- Fragmented approach to radio spectrum management: Earlier attempts to establish greater EU coordination in spectrum management were not fully successful, and, in parallel, discrepancies and delays have been observed in the timing of spectrum assignments and in network infrastructure deployment across Member States.
- Lack of a level playing field: Currently, the existing EU regulatory framework for electronic communications networks and services does not reflect the convergence between cloud and telecoms providers and does not ensure a regulatory level playing field and equivalent rights and obligations for all actors and end-users of digital networks, both public and private.
- Risks of excessive dependency: Modern technologies are leading to new markets and business models, such as network sharing. This opening of traditionally “closed” electronic communications networks brings opportunities but also bears the risk of excessive EU dependence on large non-EU providers.
- Need for more innovation and industrial capacities across the telecom value chain: To ensure the economic security of its network infrastructures, the EU needs to enhance and better coordinate research efforts and multi-disciplinary cooperation, and improve access to finance by EU actors, including by coordinating public and private investments.
- Sustainability: The ICT sector accounts for around 7%-9% of global electricity consumption, around 3% of global greenhouse gas emissions and increasing amounts of e-waste. Used properly, digital technology can outweigh its emissions and help cut global emissions, but this entails the need for further investments by operators.
- Security: In a geopolitical environment increasingly marked by tension and conflict, the security and resilience of critical infrastructure should be based on trusted suppliers, on the development of security standards for end-to-end connectivity, and on a higher level of resilience and integration at all levels: terrestrial, non-terrestrial, access and backbone networks, including submarine cable infrastructures.
What are the main technological challenges for the digital connectivity infrastructure?
New business models and marketsare emerging from technological developments around the App Economy, Internet of Things, Data Analytics, Artificial Intelligence or new forms of content delivery such as high-quality video streaming.
These applications require a continuousexponential increase in data processing, storage, and transmission. This has led to the virtualisation of electronic communications networks functions in software and to the shifting of these functions to the cloud or the edge.
This new model of network and service provision relies not only on traditional electronic communications equipment, networks and service providers but also on acomplex computing continuum of cloud, edge, content, software and component suppliers, with boundaries increasingly blurred between these various actors.
However, this inevitable opening of the traditionally “closed” electronic communications network in a Network-as-a-Service approach exposes network capabilities to third parties and raises the prospect oflarge non-EU providers becoming leading players in such ecosystems.
In the current geopolitical context, there is a risk to our economic security, especially if this leads to additional excessive dependencies on non-EU players in the entire digital service sector. It is therefore key thatEuropean players develop the necessary capacities and scaleto become service platform providers.
What is the “Connected Collaborative Computing” Network (3C Network)?
The 3C Network is a futureecosystem that spans over the entire computing continuum, from semiconductors and radio technologies to connectivity infrastructure, data management, and applications.
The launch of a number oflarge-scale pilotsis a key step towards the creation of the 3C Network that set up end-to-end integrated infrastructures and platforms and bring together players from different segments of the connectivity value chain and beyond.
To implement the 3C Network, the Commission may consider proposinglarge-scale pilots that set up end-to-end integrated infrastructures and platformsand bring together players from different segments of the connectivity value chain and beyond.
These pilot infrastructures would be used totest innovative technologies and applications(including demos, proof of concepts, and early deployment of technologies). They could be linked, where appropriate, to the European network of competence centres in semiconductors, which are maximising synergies with the European Digital Innovation Hubs. Initial pilots could focus on 5G corridors, e-health and smart communities.
What benefits will these initiatives bring to EU citizens?
Increased connectivity and the technologies that come with it, will bring many benefits to people in the EU.
Along with better connection speeds, security and coverage, better connectivity means:
- Safer and more energy-efficient workplaces, which use smart energy grids and sensors in buildings to improve the use of resources;
- Cheaper and cleaner transport through 5G-enabled Connected and Automated Mobility, which will improve road safety and road traffic, as well as cut down CO2emissions;
- Better healthcare, with personalised medicine recommendations; faster drug development as supercomputers can access data quicker; and easier patient monitoring thanks to telemedicine;
- A cross-sector reduction of the environmental footprint in digital, building a more sustainable future for us and our children.
How will increased connectivity support the adoption of new applications of high societal value?
Increased connectivity and the digital network infrastructures that support it will help foster the emergence of new technologies, and integrate and improve existing technologies, which in turn will support Europe’s future competitiveness.
For example, increased connectivity can facilitate:
- Automated driving;
- Smart manufacturing;
- Personalised health care;
- Artificial intelligence (AI);
- The Internet of Things (IoT);
- Web 4.0.
Where are we on copper switch-off?
Currently, the process of copper switch-off varies considerably in the EU. By 2023 the leading fixed line operators had announced plans for switching off their copper networks in 16 Member States (BE, EE, EL, ES, FI, FR, HU, IE, IT, LU, MT, PL, PT, SE, SI, SK), while actual decommissioning has already commenced in 10 Member States (BE, EE, ES, FI, LU, MT, PL, PT, SE, SI). However, the progress within these Member States varies significantly.
What initiatives to strengthen connectivity already exist?
The Commission has already adopted several initiatives to strengthen our connectivity networks.
It fostered a regulatory framework, for example through theGigabit Infrastructure Actand theGigabit Recommendation, to incentivise the roll-out of gigabit networks, such as fibre and 5G.
It also introduced new initiatives to channel public and private investments and boost production and innovation in key technological areas, such as theChips Joint Undertakingor the IPCEINext Generation Cloud Infrastructure and Services.
The Commission also launched theSmart Networks and Services Joint Undertaking (SNS JU), with EUR 900 million of EU funding, conducting research and innovation for advanced 5G and 6G networks, and ultimately promoting European leadership in future networks.
Moreover, funding programmes such as the Connected Europe Facility (CEF) or the Digital Europe Programme (DEP) contribute to bridging the gap between digital technology research and market deployment, benefiting Europe’s citizens and businesses.
What are the next steps?
Following the presentation of the connectivity package, the Commission has launched a public consultation on the scenarios for possible policy action set out in the White Paper. The consultation is set to close on 30 June 2024.
The Recommendation on the security and resilience of submarine cables was adopted on 21 February 2024 and is addressed to Member States. It identifies a series of targeted actions that can be pursued by Member States at national and Union level for:
- Assessing and improving the security and resilience of existing and new submarine cable infrastructures by setting up a new Cable Security Toolbox;
- Supporting the deployment or significant upgrade of submarine cable infrastructures via Cable Projects of European Interest (‘CPEI’), under certain conditions.
Source – EU Commission
Statement by EVP Margrethe Vestager on the future of digital networks
– Check against delivery –
Today, we present a white paper on Europe’s digital infrastructure needs, and a recommendation on Submarine Cable Infrastructure.
Over the past months and years, this Commission has adopted legislation to strengthen Europe’s digitisation.
- We adopted clear targets for Europe’s overall digital transformation – with our Digital Decade strategy;
- We enable investments in digital through several funding programmes like the Digital Europe Programme;
- We foster a human and inclusive digitisation – with the declaration on digital rights & principles;
- We enable safe online content – with the Digital Services Act and the AI Act;
- fair online markets – with the Digital Markets Act;
- safe networks – with the toolbox for 5G security and the NIS2 Directive;
- fast, affordable and wide high-capacity networks with the Gigabit Infrastructure Act;
- open access to data – with the Data Act and the Data Governance Act;
- reliable supply chains – with the Chips Act.
But for all of this to happen, we need a strong foundation. A digital infrastructure that provides secure, fast, and reliable connectivity – to everyone, everywhere.
Connectivity is a social matter. Connecting people, including in rural and remote areas, is a way to make a cohesive society. It allows millions of citizens to have access to public services literally from their pocket, anytime and from anywhere. Today, only 56% of European households have access to fibre networks. In South Korea, or Japan, this reaches close to 100%.
In December 2022, we revised State aid rules for broadband networks. This enables Member States to develop gigabit and 5G networks, where private investments would otherwise not have been done.
Connectivity is also a matter of competitiveness. The future competitiveness of all sectors of Europe’s economy depends on the deployment of our digital infrastructure, such as fixed and mobile broadband. As one example on the global effect, a 2020 study estimates that increased connectivity in mobility, healthcare, manufacturing, and retail alone, could boost global GDP by up to 2 trillion dollars by 2030. These four sectors account for roughly one-third of global GDP. This means that the benefits could be much higher, if we include more sectors.
Connectivity is finally a matter of technological development. The exponential rise of Internet-of-Things, and the need for real-time data processing, means we need to expand capacity in both edge and cloud computing. This brings plenty of opportunities for telecommunication businesses. But also new risks of cybersecurity and dependencies, especially on a few cloud providers.
Today, Europe is facing an issue of capacity. Our current infrastructure cannot sustain the skyrocketing amount of data that we are generating. Let alone what we will be generating in the future. Both us as citizens, as well as our industry. We need to increase capacity – and for this, we need more investments.
Also, the telco sector suffers from a fragmented marketplace. A lack of Single Market. Telco businesses operate mainly at national level. We’ve all experienced, when we travel across Europe, the connectivity gap at the borders.
We have 27 national markets with different network architectures, different levels of network coverage, different national spectrum markets and management, and different regulations.
This fragmentation is a missed economic opportunity. Only if we remove such differences, we will see the emergence of a Single Market for telco. And pan-European players will emerge and be able to reap the full benefits of economies of scale.
Today, there is nothing from a competition policy angle that prevents telco businesses from consolidating cross-border. The reason they don’t do it is because the obstacles – including the burden of having to deal with different regulations – are commercially dissuasive. As long as the benefits of cross-border consolidation are limited by the lack of a genuine single market, we won’t see any consolidation.
So as a priority, we must work to create a European Single Market for telcos. And this White Paper identifies various policy solutions to help us get there.
For instance, accelerate the switch-off of copper towards fibre networks. Beyond being more sustainable, switching to fibre would also mean the same technology is used across Europe. Another solution is a more integrated spectrum governance at European level, which would allow for greater harmonisation of spectrum authorisation processes across countries. This would create the conditions for operators to get larger investment capacity, and scale their businesses across markets.
Those are just a few examples of the many solutions this White Paper proposes in order to secure the future of Europe’s connectivity. And make sure both ends meet: on one side, a vibrant, seamless cross-border marketplace for telcos. On the other, reliable and affordable connectivity for everyone, everywhere in Europe.
As you can hear, this is NOT a proposal for legislation. We have identified possible solutions, based on the responses from the Exploratory Consultation, that we ran last year. And the White Paper itself will of course be subject to a public consultation too. This will lay the ground for the work of the next Commission.
The second element in our proposal is a Commission Recommendation on Secure and Resilient Cable Infrastructure.
Nearly all international data traffic is carried underseas, through submarine cables. These cables are used for many things: our daily communications, military operations, global finance movements. Those cables are a highly strategic infrastructure. They have to cope with both an increasing demand for bandwidth, and with new security threats – from hacking to surveillance.
This seems obvious, but it’s not. While all Member States depend on those cables for their connections, there is not enough coordination at European level. What we do here is to create a sense of urgency across all Member States and help them coordinate their approach. So that undersea cables receive the maximum security, and protection from foreign interference – all over Europe.
The Commission recommends that Member States take action, in particular:
- they should ensure that submarine cables meet the highest security levels, including by mapping their existing infrastructures and running risk assessments,
- they should stress-test their facilities, and
- they should use fast-track procedures in the acquisition, operation or maintenance of their submarine cables.
The Commission will set up an expert group, tasked to run a consolidated mapping and risk-assessment of all Europe’s cable infrastructures. It will also create a “Cable Security Toolbox”, in cooperation with the Member States. The toolbox will identify mitigating measures that Member States are encouraged to adopt to reduce risks, vulnerabilities, and dependencies. In particular on high-risk suppliers4.
We also recommend a joint creation of Cable Projects of European Interest. Just like our Important Projects of Common European Interests, the idea is to pool public and private funding, and act as an additional measure to mitigate security risks, especially on subsea cables.
I will now leave the floor to Thierry.
Thank you.
Commissaire Breton – Présentation du Livre blanc sur le futur des infrastructures numériques de l’Europe
Bonjour à tous,
Nous vivons, vous le savez, dans une société et une économie de plus en plus connectées. Au-delà de l’impact sur notre quotidien, cette course mondiale aux technologies est une course pour la résilience et la compétitive. Et dans cette course, l’Europe ne restera pas à la traine.
Depuis le début du mandat, nous encourageons l’innovation et le leadership technologique dans des domaines tels que les plateformes en ligne, l’IA, les données, le cloud, l’informatique quantique et le métavers.
Mais pour que cette révolution technologique réussisse, nous avons besoin d’une infrastructure numérique solide, à la hauteur des enjeux en termes de vitesse de transmission, de capacité de stockage, de puissance de calcul et d’interopérabilité.
C’est un catalyseur de croissance, d’innovation et de création d’emplois dans des domaines aussi importants que la santé, l’énergie, l’agriculture, le transport.
Cette transformation demande un nouveau cadre règlementaire et d’investissement de nos infrastructures numériques.
Notre législation a 20 ans et date de l’ère du réseau de cuivre. Aujourd’hui, nous voyons une convergence croissante entre les télécommunications, le cloud computing et les infrastructures de traitement en périphérie (edge computing). En d’autres termes, le secteur de la connectivité est de plus en plus indissociable du domaine du cloud computing, et tous deux convergent vers une fusion de la transmission, du stockage et du traitement de données. C’est comme un « continuum informatique » (computing continuum).
Cela entraîne des exigences accrues en matière de performance et de sécurité. Et des besoins d’investissement considérables. Pour déployer cette infrastructure, nous devons investir plus de 200 milliards d’euros dans les 6 années qui viennent.
Il est donc temps de changer le braquet.
C’est tout l’objet du Livre Blanc que nous présentons aujourd’hui, qui jette les bases pour un futur Digital Networks Act axé sur trois piliers : investissement, cadre réglementaire et sécurité.
- Investir dans les infrastructures dont nous avons besoin pour notre compétitivité et notre leadership technologique et industriel.
Dans la continuité de l’approche industrielle que nous avons promue au cours de ce mandat, nous proposons de soutenir la création d’un écosystème européen d’innovateurs dans le continuum informatique : le réseau “Connected Collaborative Computing” ou “3C Network”. Cet écosystème pourrait être structuré autour de lignes pilotes à grande échelle, permettant tous les acteurs dans la chaîne de valeur – ceux du secteur numérique (chips, cloud), mais aussi des secteurs qui seront numérisés (transport, santé) – d’expérimenter, tester et développer de nouvelles applications et solutions.
Cette approche demandera de s’engager sur des partenariats tout au long de la chaine de valeur et de financements à la hauteur de nos ambitions (combinant les programmes de l’Union, les financements nationaux et privés).
- Établir des conditions de concurrence équitables grâce à un cadre règlementaire orienté vers l’avenir.
Les acteurs technologiques ont besoin d’envergure et d’agilité pour s’adapter à cette révolution technologique. Or, le cadre réglementaire actuel est trop fragmenté. Il existe encore trop d’obstacles réglementaires à la création d’un véritable marché intérieur des télécommunications, qu’il s’agisse de l’acquisition du spectre, de la consolidation, des réseaux existants, de la sécurité, etc. Et les acteurs du cloud et des télécommunications ne sont pas soumis aux mêmes règles
Nous devons donc construire un véritable marché intérieur numérique pour faciliter l’émergence d’opérateurs paneuropéens, avec les mêmes opportunités commerciales que leurs rivaux dans d’autres régions du monde, et qui peuvent présenter leurs produits et services à 450 millions de clients potentiels.
Les pistes envisagées sont les suivantes :
- consacrer le “principe du pays d’origine” pour les services télécoms, comme c’est déjà le cas pour le cloud, afin de réduire les coûts de mise en conformité et les exigences d’investissement,
- adapter la réglementation au nouvel environnement de la fibre optique,
- démystifier la question du nombre optimal d’opérateurs car NON, dans ce domaine il n’y a pas de chiffre magique,
- et européaniser l’octroi de licences d’utilisation du spectre, au moins pour les satellites.
- Veiller à ce que notre infrastructure de réseau numérique soit résiliente et sûre.
Dans le contexte géopolitique que nous connaissons bien, nous proposons des mesures pour renforcer la sécurité physique et la cybersécurité de notre infrastructure mais aussi des données qui y sont transmises. Nous finalisons une recommandation sur le chiffrement post-quantique, qui sera présentée prochainement, et nous mettons un accent particulier sur les infrastructures de câbles sous-marins, qui transportent plus de 99 % du trafic de données intercontinental, ainsi que des flux de données cruciaux intra-européens.
Sur ce dernier point, nous avons adopté aujourd’hui une recommandation aux États membres pour établir une boîte à outils de sécurité des câbles (Cable Security Toolbox, inspirée de notre 5G Toolbox) et élaborer une liste de Projets de Câbles d’Intérêt Européen, qui devraient bénéficier d’un financement public prioritaire.
[Conclusion]
C’est ainsi que nous posons les jalons d’un futur Digital Networks Act pour accroitre l’attractivité pour les investisseurs privés, créer un véritable marché intérieur, et adopter une approche de sécurité holistique.
J’entends d’ici delà que nous n’avons pas besoin d’une loi sur l’infrastructure numérique. Je connais bien la chanson, croyez-moi, car j’ai entendu le même immobilisme pour le Chips Act, le Critical Raw Materials Act, le Net Zero Industry Act, voire même le AI Act.
Mais je suis convaincu que, comme nous l’avons fait dans tant d’autres domaines, l’Europe relèvera le défi et plutôt que de nous contenter de fixer des objectifs pour la décennie numérique, nous mobiliserons tous les efforts pour les atteindre.
Il en va de notre prospérité, de notre compétitivité et de notre résilience.
Merci beaucoup.