- Revised Cybersecurity Act and proposed Digital Networks Act signal deeper regulatory change for EU telecoms operators.
- Industry groups warn new requirements could increase costs, limit competition and slow infrastructure investment.
What happened: Regulation tightening pace accelerates
In early February 2026, the European Union advanced revisions to its telecommunications legal framework that have sector leaders reassessing compliance and investment strategies.
The update includes changes to the Cybersecurity Act (CSA) that would require operators to adopt tighter supply-chain controls and potentially eliminate equipment from what Brussels deems “high-risk” vendors within a set timeframe. Operators may need to undergo costly “rip and replace” exercises if component vendors are designated as high risk under the revised CSA.
Alongside this, the EU’s Digital Networks Act (DNA) proposal is designed to consolidate existing rules such as the Electronic Communications Code into a single regulatory instrument, addressing issues like spectrum authorisation, copper network retirement and spectrum sharing. Stakeholders have responded robustly: industry bodies including the GSMA and Connect Europe suggest the DNA may add complexity rather than reduce it if substantive changes are not fully embraced.
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Why it’s important
These legislative changes come at a time when European carriers are already navigating squeezed margins and pressure to invest in next-generation networks such as full-fibre and 5G/6G, and compliance costs can materially affect financial planning. Analysts often note that regulatory uncertainty can dampen capital allocation for infrastructure rollout, especially where obligations require expensive vendor swaps.
According to the Telecoms.com analysis of EU proposals, the revised CSA’s potential mandate to phase out equipment from certain vendors places operational and financial burdens on operators, particularly smaller ones with limited purchasing power. Meanwhile, the DNA’s spectrum and infrastructure provisions influence long-term planning and investment horizons by seeking to harmonise authorisation and promote cross-border operations.
The cumulative effect of these laws could shift competitive structures within Europe’s telecom industry — potentially favouring larger incumbents that can absorb regulatory costs — even as Brussels aims to foster a single European telecom market with greater digital sovereignty and technology resilience.
