GSMA warns Europe’s Digital Networks Act may hamper telecom investment

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GSMA criticises the European Commission’s Digital Networks Act proposal for adding complexity rather than simplifying regulation. The mobile industry body argues the current DNA falls short on incentives for investment and global competitiveness. What happened: GSMA voices concern over EC’s Digital Networks Act directi ve The GSMA, the global trade association representing mobile network operators, has sharply criticised the European Commission ’s Digital Networks Act (DNA), warning that the proposed framework could undermine investment in Europe’s telecoms infrastructure.

The response, published shortly after the Commission unveiled the long-awaited legislation on 20 January 2026, has drawn swift attention from operators, policymakers and technology suppliers. According to the GSMA, the DNA fails to deliver the decisive reform many in the sector had expected to address Europe’s structural telecoms challenges. While the Commission has presented the DNA as a step towards simpler and more harmonised regulation, the GSMA argues that it instead introduces sector-specific rules, new administrative bodies and additional reporting obligations.

The association described the approach as regulatory “complexification” rather than simplification. The GSMA also warned that the proposal does not adequately address long-standing barriers to scale and investment that have slowed the deployment of 5G standalone networks and could weaken Europe’s position as the industry moves towards 6G. It criticised elements such as voluntary conciliation processes between operators and large traffic generators, arguing they lack sufficient force to rebalance bargaining power.

Although welcoming some measures including moves towards more harmonised spectrum policy and the proposed “Single Passport” for pan-European service registration the GSMA said the overall package remains evolutionary, not transformational, and falls short of what is needed to restore Europe’s digital competitiveness. Also Read: GSMA urges urgent spectrum planning to support 6G Also Read: Europe’s AI and cloud services demand hits new heights in Q4 2025 Why it’s important The GSMA’s reaction underscores a growing divide between telecom operators and European regulators over network investment returns.

Regulators continue to prioritise security and consumer protection, while operators argue the current framework undervalues capital-intensive network build-out. Rolling out fibre, 5G standalone and future 6G networks requires sustained multi-billion-euro investment, yet revenue growth remains constrained by fragmented markets and regulatory pressure. For the wider technology ecosystem including cloud providers, hyperscalers and enterprise service vendors slower network investment could directly affect service quality, innovation and growth. The DNA was intended to reset the relationship between regulators and network builders.

Instead, the industry response suggests that trust remains fragile, with significant implications for Europe’s digital ambitions.