Thierry Breton, the European Union’s Commissioner for the Internal Market, this week outlined a series of steps that the bloc could potentially take to enhance its telecommunications infrastructure.

Breton made the suggestions during a Monday speech in Helsinki. He suggested, among other ideas, that tech companies could play a role in financing the rollout of new telecommunications infrastructure.

Internet providers in the EU and elsewhere are currently upgrading their wireless networks to the latest 5G broadband standard. The standard supports top download speeds of 10 gigabits per second, 100 times the maximum bandwidth of previous-generation 4G technology. Worldwide, internet providers have invested more than $100 billion in deploying the technology.

The telecommunications sector is also investing in new fiber optic infrastructure to deliver faster wired internet. To support the effort, internet providers are exploring emerging technologies such as hollow fiber optic cables. Such cables promise to provide faster data transfer speeds, as well as lower latency, than current technologies.

During the Monday speech in Helsinki, Breton noted that the EU has set a target of extending 5G wireless coverage to all populated areas within the bloc by 2030. In the same time frame, regulators hope to make gigabit connectivity broadly available for households. Gigabit connectivity is a term for wired internet subscriptions that offer connection speeds of at least 1 gigabit per second.

Breton detailed that the EU plans a new regulatory proposal to support the rollout of 5G and fiber optic network infrastructure. The  proposal, which is known as the Gigabit Recommendation, would provide guidance to the regulatory authorities of EU member states on how they can incentivize faster network upgrades.

“The investments which will be required to achieve our ambitions will be enormous,” Breton added. “At a time when technology companies are using most bandwidth and telco operators are seeing their return on investment drop, this also raises the question of who pays for the next generation of connectivity infrastructure.”

In the speech, Breton also addressed merger and acquisition activity within the EU’s telecommunications sector. He suggested that the bloc should reevaluate its policies concerning mergers between internet providers. “I believe that creating a true Single Market for telecommunications services also requires a reflection on encouraging cross-border consolidation, all while preserving fair and necessary competition for the benefit of our consumers,” Breton said.

The EU will launch an industry consultation this month to explore the future of internet infrastructure in the bloc. According to Breton, the consultation is expected to run for two months. It will explore what investments the EU should make to advance digital transformation initiatives in the bloc and address emerging technology trends.

“To stay ahead of these transformative technological developments, we need to ensure that the regulatory framework is fit for purpose and that funding is adequate and effective,” Breton said.

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