As the European Commission released its third round of EU and national reports on digitalisation goals on 16 June, Euractiv examined the stark contrast between its pessimistic EU-wide assessment and the more optimistic national-level conclusions.
The EU has committed to ambitious 2030 targets: 100% coverage of inhabited areas with very high-capacity networks (VHCNs) – capable of delivering 1 Gbps download speeds – as well as full fibre and 5G deployment. To monitor progress, the Commission compiles annual reports based on data from member states. However, this year’s presentation was skewed to support the forthcoming Digital Networks Act (DNA), expected in December, which aims to overhaul telecom regulation by deregulating the market.
Germany’s meagre fibre shouldn’t distract from progress elsewhere
Despite solid progress – VHCN and fibre coverage reached 82.5% and 69.2% of buildings respectively by the end of 2024 – the Commission’s aggregate report warns that “at the current pace, full coverage would only be achieved by 2051.” It then positions the DNA as the remedy to accelerate deployment.
This contrasts with its own country-level reports, which suggest most member states are either on track or exceeding national targets – calling into question the need for alarm.
Only a few countries appear at risk of missing the EU 2030 goal: Austria, Belgium, Czechia, Estonia, Germany, and Latvia. But this list requires nuanced reading: Austria, Belgium, and Czechia have set more modest targets than the EU’s – 72%, 82%, and 60% fibre coverage respectively. These three are betting on relying on coaxial networks and fibre networks to be 100% very-high capacity network ready by 2030 – and are all either on track or slightly ahead of their fibre roll out plans.
Germany is the main concern. Fibre coverage stood at just 36.8% in 2024, and at the current pace projections show it reaching just 71% by 2030.
With Germany accounting for 17% of the EU population, this performance would significantly dent the EU’s 2030 target – implicating major German telcos’ failure to invest in infrastructure upgrades.
National reports show no structural failure of the market in digital infrastructure. The real challenge remains in rural and remote areas, where private investment is limited and public subsidies are necessary – funds that are harder to secure as EU priorities shift towards defence.
On the mobile side, the EU reached 94% high-speed 5G coverage in 2024, on track to hit 100% by 2030. Romania lags behind at 47%, but 25 countries have surpassed 80%, and eight already reached full coverage.
Progress does seem to be needed in terms of 5G standalone deployment (which requires additional core infrastructure) compared to the US and China. But here, again, the Commission employs dramatic language in its EU-level overarching document, when its own unofficial indicator that tracks deployment of 5G in the 3.4-3.8 GHz band shows 68% completion yet is not even mentioned.
Given this overall progress, the Commission’s dramatic framing of the EU’s state of digital infrastructure roll-out appears unjustified. The DNA – described by some as a “regulatory big bang” – risks disrupting a functioning market that is largely meeting infrastructure goals.
Both the Council of the EU, independent think tank CERRE, the Commission’s competition department and BEREC (the Body of European Regulators for Electronic Communications) have raised concerns about any moves to deregulate the telecoms market.
What needs attention instead
The real issue for the EU’s goals lies not in connectivity but in the digital transformation of businesses, which is far more crucial to the bloc’s competitiveness.
Yet the infrastructure-to-usage gap is growing. Romania, for instance, has the EU’s best fibre network but ranks last in cloud, data analytics and artificial intelligence adoption by its companies. France also has robust infrastructure but only average digital uptake by businesses.
This disconnect isn’t just about national wealth. It reflects broader structural divides. Northern and Western countries are better off than Sourthern and Eastern countries. Denmark, Finland, and the Netherlands lead in enterprise adoption of these three metrics, while Bulgaria and Romania trail.
Another overlooked issue is the uneven distribution of edge nodes – small data centres essential for low-latency applications. In 2024, Germany and France hosted 52% of EU edge nodes, reinforcing digital geographical imbalances, as standard data centres are mainly situated in Western capitals such as Paris, Frankfurt, Amsterdam, and Dublin.
None of these challenges are addressed in the Commission’s headline conclusions. If the EU is serious about digital competitiveness, it must shift focus from building networks to ensuring businesses – and citizens – actually use them.
(nl)
