EU Data Act: An Opportunity or Compliance Burden for Telcos?

On 12 September 2025, the EU Data Act will take effect, setting new rules for how data is accessed, shared and transferred across Europe.

While many operators may see the legislation as a compliance burden, industry experts argue that the legislation opens a window of opportunity. For telcos, the Act offers a chance to rethink customer strategies, build loyalty and create new value in a market where trust, resilience and transparency are now critical competitive factors.

According to Keith McAleese, Senior Partner at BIP UK, the law should not be perceived as a loss of control. Instead, he describes it as a pivotal moment. “This is a moment for telcos to pivot from seeing data regulation as restrictive to recognising it as a catalyst for customer connection,” he explains.

Beyond compliance: Building trust and differentiation

The EU Data Act gives consumers the right to access, share and port their data across providers. By preventing lock-in, it ensures a more level playing field in the digital economy.

At first glance, it may strip away some of the traditional advantages held by telecoms operators. Yet, Keith stresses that forward-thinking providers can leverage the mandated transparency to stand apart from competitors.

“Transparency is no longer just a legal requirement, it’s a brand differentiator,” he noted.

“Operators that make consent and portability seamless, while showing they are investing in the resilience of their infrastructure, will send a powerful trust signal. In an industry where churn is a constant challenge, that trust becomes a key retention lever.”

The regulation, therefore, reframes data not as an asset for harvesting but as part of a value exchange. Customers expect operators to safeguard their information with the same reliability as the networks themselves.

In return, they are willing to share data if it leads to personalised experiences, loyalty incentives or enhanced services.

Ecosystem opportunities through interoperability

Another core element of the Act is interoperability. With open APIs as a foundation, telcos will be able to forge deeper partnerships with technology vendors, application developers and content platforms.

The collaborations open the door to bundled services, innovative ecosystem plays and tailored propositions designed to deepen customer engagement.

For operators, it means more than compliance: it offers the ability to expand their role in the digital value chain.

By aligning with partners while maintaining security and resilience, telcos can evolve from connectivity providers into trusted ecosystem players.

Security and compliance as non-negotiables

The opportunities, however, come with heightened responsibility. As more data flows between partners and platforms, the risk of exposure to cybercriminals inevitably grows.

For telecoms operators, ensuring resilience and maintaining compliance will be non-negotiable aspects of delivering value.

“Customers expect that their data will be protected just as robustly as the networks they rely on every day,” Keith observed. “Yes, telcos can evolve from connectivity providers into more data-driven ecosystem players, but they can only do so if those ecosystems are built on security, resilience and compliance.”

Failure to meet these expectations risks eroding trust, undermining the very loyalty that the Act has the potential to strengthen.

Redefining the operator–customer relationship

At its heart, the EU Data Act encourages operators to rethink their role in the market.

No longer positioned simply as utilities, they have the chance to become trusted partners by curating services, tailoring offers and demonstrating that data use brings tangible customer benefits.

“We see this regulation as an invitation for telcos to rethink their role,” Keith explained. “Rather than being seen as utilities, operators have the chance to become trusted partners by curating services, tailoring offers and demonstrating that in using data in ways that deliver real benefits, without compromising security or compliance.”

A catalyst for growth and loyalty

The broader message for the industry is clear. Treating the EU Data Act solely as a compliance exercise risks missing the bigger picture.

Viewed strategically, the legislation provides a springboard for innovation, resilience and trust-building.

Operators that embrace transparency, strengthen resilience and create seamless customer experiences will be in a strong position to thrive. In an increasingly competitive market, trust will become the defining currency of telecoms.

Those who act early to align compliance with value creation will not only reduce churn but also emerge stronger and better positioned for growth.