Introduction to Very High Capacity Networks

Why Very High Capacity Networks matter?

The Directive (EU) 2018/1972 of the European Parliament and of the Council establishing the European Electronic Communications Code (‘the EECC’) foresees in Art. 3(2)(a) that the National Regulatory Authorities (NRA) and Other Competent Authorities (OCA) as well as the Body of European Regulators for Electronic Communications (BEREC), the European Commission (EC) and the Member States (MS) shall pursue the general objective of promoting connectivity and access to, and take-up of Very High Capacity Networks (VHCN), including fixed, mobile and wireless networks, by all citizens and businesses of the European Union (EU). This objective is also at the core of the EU’s ambition towards a gigabit society and VHCN therefore form part of other initiatives taken by the EU institutions to support this ambition.

The reason for pursuing this objective, as stated in recitals 28 and 109 of the EECC, is to ensure widespread connectivity in each MS which is essential for economic and social development, participation in public life and social and territorial cohesion. Connectivity and the use of electronic communications are an integral element of European society and welfare. The implementation of VHCN will support innovation in content-rich internet services, strengthen the international competitiveness of the EU, and create enormous potential to deliver benefits to both consumers and businesses across the EU.

What role does BEREC play?

The EECC establishes a harmonised framework for the regulation of Electronic Communications Networks (ECN) and Services and lays down the tasks of NRAs and of BEREC. The EECC identifies VHCN as a key concept with far-reaching legal and regulatory consequences in several provisions of the EECC.

In Article 82 of the EECC, the legislators, the European Parliament (EP) and the Council, entrusted BEREC with the task of issuing guidelines on the criteria that a network has to fulfil in order to be considered a VHCN.

Article 76 of the EECC foresees that NRAs will not impose obligations on Significant Market Power (SMP) operators where SMP operators offer commitments to open the deployment of certain new VHCN elements to co-investment, subject to certain conditions (as defined in Art. 76(1) of the EECC). In Article 76(4) of the EECC, the legislators, the EP and the Council, entrusted BEREC with the task of issuing guidelines to foster the consistent application by NRAs of the conditions set out in Article 76(1) and Annex IV of the EECC.

Article 22(1) of the EECC states that the NRAs and/or OCAs shall, by 21 December 2023, conduct a geographical survey of the reach of the ECNs capable of delivering broadband, and shall update the survey at least every three years thereafter. This geographical survey may also include a forecast of the reach of broadband networks, including VHCN, for a period determined by the relevant authority. The geographical information on the reach of broadband networks is seen as an important tool for enabling the effective design, implementation and monitoring of broadband policies and related regulation. BEREC has published guidelines (‘Handbook’ document) to help the MSs design and conduct geographical surveys that are relevant for the regulatory obligations and policy functions that they serve.