Charting the Connectivity Landscape: challenges, investments, and the EU’s vision for a digital future

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In 2023, the challenges for the connectivity sector in Europe were dramatically highlighted. The European Commission initiated an exploratory consultation, underlining the crucial need to review the existing regulatory framework to attract more investment in infrastructure in response to the profound changes in practices and to the development of innovative technologies, which are affecting the financial balance of the ecosystem.

Very high-capacity networks capable of processing massive amounts of data are needed for the EU to remain competitive, but electronic communications operators today face growing economic pressure. Digital markets are constantly changing, and the need for investment to keep pace with these developments is exploding. For example, incoming mobile traffic in France increased 18-fold between 2012 and 2021 and is expected to further increase 6-fold by 2030. Faced with an expected deficit of nearly 200 billion euros in investments to achieve the connectivity objectives of the Digital Decade by 2030, the industry must be supported by the European Union through a proactive and ambitious policy plan, spreading the investment effort across the entire value chain to ensure the resilience of an essential infrastructure at the heart of our economy.

The Digital Network Act is expected in 2024, as announced by Internal Market Commissioner Breton, who rightly reminded that cutting-edge telecommunications infrastructure is a fundamental pillar for growth, innovation and job creation. Among the priorities there is the need to adapt the regulatory framework to reduce costs and facilitate the rapid deployment of very high-capacity networks. The Gigabit Infrastructure Act proposed by the Commission in February 2023 was a promising start, but its ambition needs to be confirmed in the ongoing negotiations.

Finally, the green transition is affecting all sectors, including connectivity. Telecom operators seek to reach sustainability goals, but the success of these initiatives requires a global commitment towards a more optimised use of networks from the digital sector as a whole.

With the upcoming EU elections, 2024 will be a crucial year to make the connectivity aspirations of the European Union a reality. The announced “connectivity package” could be an essential instrument to overcome the challenges and secure the future of the sector, ensuring the sustainability of our infrastructures for the benefit of European citizens and businesses.

Romain Bonenfant
EuroISPA Board Member
Managing Director, Fédération Française des Télécoms

Cybersecurity in the EU: Milestones, Challenges, and the Road Ahead

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The past year has brought several significant developments at EU level both in the Cybercrime and Cybersecurity field.

The adoption of the European Commission’s flagship project, the e-Evidence Regulation, in the summer of 2023, was a significant milestone given the ongoing discussions on the topic since 2017. For the first time, law enforcement authorities will now be able to directly address service providers established on the territory of a different Member State. The focus will now be on the technical implementation of the Regulation in the Member States, where new challenges will be posed by the EU-wide harmonisation of the national technical platforms for the secure exchange of data between law enforcement authorities and service providers via a decentralised IT-system.

Another central topic is the importance of encryption. The initial proposal on the Regulation to combat child sexual abuse stipulated detection measures that would have significantly undermined the use of end-to-end encryption in communication services. This provoked a huge wave of criticism showing that secure communications are also important to the broader public. This response ultimately led the European Parliament to explicitly exclude end-to-end encrypted communications from the scope of the Regulation.

At EU Member State level, the implementation of the NIS-2-Directive is still ongoing and will require substantial efforts by the affected companies, especially those that have not been subject to any cybersecurity requirements until now. On the other hand, providers of electronic communication networks and services are already under a sector-specific security regime as part of the European Electronic Communication Code. It will therefore be important that the national implementation of the NIS-2-Directive take into account the already existing security concepts in this sector and only stipulate additional measures where these would in fact lead to a higher level of security.

A political agreement on the Cyber Resilience Act has been reached, which harmonises cybersecurity standards for products and software with digital components and will also assist providers under the NIS-2-Directive to ensure supply chain security. Finally, it must be noted that the enormous frequency of new legal acts in the field of cybersecurity in recent years poses major challenges for the companies affected by them, as their internal processes must constantly be adapted, and it is often hard to find the necessary skilled workers to implement new requirements. With this in mind, along with the new mandate coming up this year, the focus of the upcoming European Commission should be on the smooth implementation of these legal acts rather than on new proposals.

Andreas Gruber
Former Chair of the EuroISPA Cybercrime & Cybersecurity Committee

Navigating the future: regulatory streamlining of electronic communications in the European Union

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Over the next five years, the European Union (EU) is poised to witness a transformative era in the development of electronic communications networks. This period is anticipated to be marked by a concerted effort to modernise the existing infrastructure and reduce barriers to the construction of advanced VHCN networks. The so-called GIA legislation is trying to focus on harmonisation across Member States and reduce bureaucratic procedures. The question we must ask is “Will that be enough?”.

Any harmonisation effort should primarily target regulatory framework, aiming to streamline and simplify the procedures for network development. This will involve revising existing regulations and possibly introducing new ones to address the evolving landscape of electronic communications. The goal is to eliminate unnecessary bureaucratic hurdles that currently impede progress and innovation. By doing so, the EU intends to foster an environment conducive to investment, innovation, and rapid deployment of advanced networks like 5G and beyond.

A significant part of this harmonisation will be the standardisation of technologies and protocols. This will ensure interoperability of networks and services across the EU, enhancing the user experience and promoting a more connected European digital market. It’s not just about enhancing speed and bandwidth; it’s also about ensuring reliability, resilience, and security of these networks, especially in the wake of increased cyber threats.

Alongside these developments, there will be a strong emphasis on the formulation of clear and fair rules for data privacy in the digital space, especially data retention. The EU recognises the need for law enforcement agencies to access certain types of data for security purposes. However, this need must be balanced against the fundamental rights of individuals, particularly their right to privacy and data protection. This framework will aim to provide clarity and certainty for both law enforcement agencies, telecommunication service providers and providers of information society services, as well as protect the privacy rights of EU citizens. The future of electronic communications network development in the EU will be characterised by a drive towards harmonisation to reduce barriers for building new infrastructure and a focus on setting clear, human rights-centred rules for data protection in the digital space. These efforts will be critical to ensure that the EU remains at the forefront of digital innovation while safeguarding the rights and freedoms of its citizens.

Jaromir Novak
Partner for Regulatory Affairs, CZ.NIC

What does Artificial Intelligence mean for the Internet Industry, now and in the future?

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Today, the European Parliament is holding the final vote on the Artificial Intelligence Act (AI Act), which proposes groundbreaking regulations for the use of artificial intelligence in the EU. In this context, EuroISPA Vice-President Lars Steffen illustrates how Artificial Intelligence will fundamentally change the landscape of the Internet industry

Artificial Intelligence (AI) is fundamentally changing the landscape of the Internet industry, ushering in a new era of efficiency, personalisation and innovation. In recent years, AI has become a cornerstone of many Internet-based services, influencing everything from search algorithms to customer service interactions. Its impact is not only transformative, but also indicative of the future trajectory of the Internet industry.

One of the most noticeable changes brought about by AI is the improvement of the user experience. From content recommendations on streaming platforms to personalised search results, AI algorithms are analysing vast amounts of user data to tailor online experiences. Not only does this keep users engaged, but it also fosters a sense of connectedness as the Internet becomes more attuned to individual preferences. This is why European copyright law must continue to be adapted to the digital age, and why excessive liability of ISPs for AI-generated content must be avoided.

AI also plays a key role in cybersecurity within the Internet industry. As online threats become more sophisticated, AI-powered systems have become particularly adept at detecting and preventing cyberattacks. Machine learning algorithms can analyse patterns and anomalies in real time, providing robust defences to protect sensitive data and ensure the integrity of online platforms.

Looking ahead, the Internet industry will see even more profound changes driven by AI. The emergence of advanced natural language processing and understanding is likely to revolutionise human-computer interactions. Conversational AI, chatbots and virtual assistants will become more sophisticated, enabling seamless communication between users and online platforms. In addition, AI-driven automation will continue to streamline various aspects of the Internet industry. From content creation and curation to logistics and supply chain management, automation will optimise efficiency and reduce costs. This will not only benefit businesses, but also contribute to a faster and more responsive Internet ecosystem.

However, these advances come with certain challenges, such as ethical concerns around data privacy and the potential for job displacement. Striking a balance between innovation and the responsible use of AI will be crucial for the sustainable growth of the Internet industry. AI is a global technology with a wide range of applications, some of which are not yet foreseeable, which means that clear assessments of the opportunities and risks in certain application areas are not always possible. In this respect, the ex-ante regulation of use cases cannot address the complexity of AI and its applications and risks weakening Europe’s capacity for innovation.

It is clear that the symbiotic relationship between AI and the Internet industry is reshaping the digital landscape. Challenges remain, but the future holds the promise of an Internet ecosystem that is smarter, more responsive and more attuned to the needs of its users. Embracing these changes with a thoughtful and balanced approach will be key to realising the full potential of AI in shaping the future of the European Internet industry.

Lars Steffen
EuroISPA Vice-President
Head of International, Digital Infrastructures and Resilience at eco – Association of the Internet Industry

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