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DIGITAL EUROPE
Gigabit Infrastructure Act
The GIA Act Regulation is not yet in force
The Gigabit Infrastructure Act is a EU Regulation adopted by EU Council and European Parliament in 2024 aimed at significantly enhancing digital connectivity across the European Union. It arises from the increasing recognition of high-quality digital infrastructure as a critical component of the economy, analogous to utilities like electricity and water.
The act seeks to update and expand the previous Broadband Cost Reduction Directive (BCRD), acknowledging that while previous digital targets were met, they are now outdated due to the rapid advancements in technology and increasing bandwidth demands. This legislative initiative acknowledges an investment gap of approximately EUR 65 billion a year in the EU's digital infrastructure, as estimated by the 2020 Communication on ‘Shaping Europe’s Digital Future’. It aims to address several key issues that hinder efficient network deployment:
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These challenges are compounded by the evolving connectivity needs highlighted by the COVID-19 pandemic, which demonstrated the necessity for fast and ubiquitous connectivity. Consequently, the Gigabit Infrastructure Act proposes measures to reduce deployment costs and facilitate the rollout of very high capacity networks (VHCN) to meet the future connectivity needs, as envisioned in the '2030 Digital Compass' and the Digital Decade Policy Programme.
This Act is part of a broader regulatory framework for electronic communications within the EU and aligns with other legislative measures aimed at enhancing fixed and mobile connectivity. It is consistent with:
This Act is part of a broader regulatory framework for electronic communications within the EU and aligns with other legislative measures aimed at enhancing fixed and mobile connectivity. It is consistent with:
- The European Electronic Communications Code, which regulates electronic communications networks and services.
- The Recommendation on a Connectivity Toolbox and the subsequent toolbox adopted by Member States, which includes best practices for reducing network deployment costs.
- The Union Secure Connectivity Programme, which supports broadband access in hard-to-reach areas.
- Various funding initiatives, including those from the Connected Europe Facility and post-COVID-19 recovery funds.
As said, the new Regulation aims to reduce the excessively high costs associated with deploying high-capacity networks, which are partly due to complicated permit-granting procedures. These procedures will be streamlined through a compulsory conciliation process involving public sector entities and telecommunications operators. Additionally, the legislation will enhance transparency and promote more efficient planning for operators of public electronic communications networks.
The Gigabit Infrastructure Act also focuses on improving public and enterprise access to information society services by addressing the deployment of and access to physical infrastructure within buildings.
Furthermore, the new law introduces some flexibility for member states, allowing exemptions for critical national infrastructure.
Lastly, with the current retail price cap for regulated intra-EU communications set to expire on 14 May 2024, the existing rates of €0.19 per minute for calls and €0.06 per SMS message will be extended until 30 June 2032. This extension aims to continue protecting consumers, particularly those who are vulnerable.
The Gigabit Infrastructure Act represents a strategic initiative to bridge the digital divide, enhance EU competitiveness in digital technologies, and ensure sustainable and inclusive growth by providing state-of-the-art digital connectivity across the Union.
The Gigabit Infrastructure Act also focuses on improving public and enterprise access to information society services by addressing the deployment of and access to physical infrastructure within buildings.
Furthermore, the new law introduces some flexibility for member states, allowing exemptions for critical national infrastructure.
Lastly, with the current retail price cap for regulated intra-EU communications set to expire on 14 May 2024, the existing rates of €0.19 per minute for calls and €0.06 per SMS message will be extended until 30 June 2032. This extension aims to continue protecting consumers, particularly those who are vulnerable.
The Gigabit Infrastructure Act represents a strategic initiative to bridge the digital divide, enhance EU competitiveness in digital technologies, and ensure sustainable and inclusive growth by providing state-of-the-art digital connectivity across the Union.