Deutsche Telekom CEO Denounces "Red Tape" in EU Digital Networks Act and Calls for More Deregulation

Timotheus Hoettges slams EU telecom reforms, citing excessive red tape and the lack of network fees for Big Tech giants like Google and Netflix.

By: AXL Media

Published: Feb 26, 2026, 7:22 AM EST

Source: The information in this article was sourced from Channel News Asia

Criticism of the Digital Networks Act

Speaking at a press conference following the publication of Deutsche Telekom's fourth-quarter financial results, CEO Timotheus Hoettges delivered a blunt assessment of the European Union's regulatory direction. Hoettges argued that the sector is being stifled by an increasing volume of administrative requirements and "red tape." His comments come in direct response to the Digital Networks Act, a major legislative revamp unveiled by the European Commission in January 2026. While the Commission intended the act to modernize the sector, Hoettges contends that the reality for operators is one of growing bureaucratic burden rather than the deregulation the industry desperately seeks.

The Debate Over "Fair Share" Fees

A central point of contention for Deutsche Telekom and other major European operators is the absence of a mandatory "fair share" contribution from U.S. technology giants. Companies like Meta, Google, and Netflix account for a massive percentage of global internet traffic, which requires significant infrastructure investment from telecom providers. The European Commission opted for a "voluntary cooperation mechanism" in the new act rather than a legally mandated network fee. Hoettges and his peers argue that without a formal requirement for Big Tech to contribute to network costs, European companies are left to shoulder the financial load of infrastructure upgrades alone.

Spectrum and Investment Predictability

The European Commission has defended the Digital Networks Act, highlighting provisions that allow operators to use radio spectrum for an unlimited duration. According to the Commission, this move is designed to provide the long-term predictability necessary to favor massive capital investments in 5G and fiber-optic networks. By removing the need for frequent and costly spectrum auctions, the EU hopes to accelerate the roll-out of high-speed connectivity across the continent. However, for leaders like Hoettges, these concessions do not go far enough to offset the broader regulatory constraints that hinder the industry’s agility compared to its American and Asian counterparts.