FTTH Council Europe reaffirms its policy priorities on the Digital Networks Act and Cybersecurity Act ahead of the Irish Presidency of the Council of the European Union
As Ireland prepares to assume the Presidency of the Council of the European Union, the FTTH Council Europe reaffirms its positions on two central regulatory files for the sector: the Digital Networks Act and the Cybersecurity Act.
Both proposals will have a direct impact on Europe's ability to reach the targets set by the Digital Decade Policy Programme. We therefore believe that the Irish Presidency should give the highest priority to both pieces of legislation.
Digital Networks Act
The FTTH Council Europe welcomes the Digital Networks Act as put forward by the European Commission. Investment and effective competition must remain at the core of any access policy.
The Council warmly welcomes the copper switch-off proposal as a driver for investment and competitiveness, and invites co-legislators to support the Commission's approach.
Maintaining the Significant Market Power process is central to preserving competition, while any access remedies should be tailored to national and market contexts.
Security and resilience obligations must be adequately supported by national and European resources in the next Multiannual Financial Framework, and must not create excessive burdens for a sector already investing heavily in the Digital Decade targets.
Some aspects of the Digital Network Act need refinement and the FTTH Council Europe will propose amendments in relation with
- Copper Switch Off (CSO)
- We propose to give those Member States with more ambition an option to opt-out of the proposals (for example if CSO is already underway and due to complete before 2032) – this should give an incentive to accelerate CSO.
- For those Member States that are covered by the provisions, our amendments propose to accelerate the provisions at each step and to consider only the universe of the premises actually served by copper services.
- Introduce the definition of ‘premises activated’
- Adding funding provision for some of the “security and resilience” provisions
- Refining Wholesale Only (Article 84) provisions
Cybersecurity Act
The FTTH Council Europe supports stronger security and resilience in Europe's telecom networks and is ready to cooperate with European institutions to achieve this objective.
However, the Council calls for a full assessment of the scale, costs and operational impact of the proposed intervention before final decisions are taken. Any measures affecting fixed networks must be evidence-based, proportionate and sensitive to the different risk levels associated with different equipment categories.
Fixed networks are long-lived, capital-intensive assets: operators need clarity on which equipment is covered, over which timeframe, and with which funding mechanisms. Any "rip and replace" obligation must be accompanied by appropriate mechanisms to fund those costs.
The FTTH CE has developed its own technical assessment of the level of risk associated with assets. Cyber Security risks differ significantly between the different segments of fixed fibre networks. From passive equipment where the risk is minimal, to active equipment running central network management where the potential risk is highest. Standard lifetime and potential cost of replacement are also very different. Passive equipment has a 20 years life cycle and represent up to 80% of the network building cost, while other equipment has a life cycle of 5 to 10 years.
The FTTH CE is ready to cooperate with the European Commission and all the relevant institutions in order to identify appropriate ways to practically implement the CSA and to identify mechanisms to offset the costs of adequate levels of security and resilience of European fixed networks, which can ensure that the Digital Decade targets can still be met and competition is not distorted.
Conclusion
The coming months will be decisive. The FTTH Council Europe looks forward to engaging with the Irish Presidency and all relevant institutional stakeholders to ensure that Europe's regulatory framework supports investment, strengthens security and resilience, and accelerates the transition to full-fibre infrastructure.