Hungary emphasises competition in new EU telecom policy shift

Hungary plans to emphasise competition as the primary driver for investment in telecom infrastructure in its upcoming draft of the Council conclusions. This shift reflects a growing reluctance among the EU member states to adopt the European Commission’s deregulation proposals, highlighting the complexities within the telecom sector as member states consider the potential impacts on market dynamics and investment.

Prompted by the Commission’s February white paper advocating for consolidation, Hungary initially aimed to reconcile diverse stakeholder views in its draft. However, it faced criticism for being overly prescriptive, leading to revision plans. Moreover, Hungary is expected to clarify that the review of the EU’s telecom law, particularly the European Electronic Communications Code (EECC), must precede any consideration of transitioning from ex-ante regulation, designed to prevent monopolistic practices, to ex-post regulation, which addresses violations only after they occur.

That clarification highlights the critical need to uphold regulatory safeguards within the telecom sector. Additionally, Hungary is under pressure from fellow member states to ensure that the Commission publishes a new telecom strategy before allocating the EU funds to enhance submarine cable infrastructure’s security and resilience. Such an approach aligns with the broader objective of ensuring that funding mechanisms support robust and secure telecom networks throughout the EU.

Finally, Hungary has set a timeline for revisions, with member states given until 30 September to respond. A revised text is expected on 9 October, before the working group meeting on 15 October. That underscores the urgency of these discussions for the EU telecom policy.