ken ducatel (dg info society): local broadband policies in europe - public action to boost growth...

. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (1)

Local Broadband Projects: Local Broadband Projects: The role of public policy in The role of public policy in stimulating digital growthstimulating digital growth

Ken Ducatel

Head of Unit “Lisbon Strategy and i2010”

DG Information Society and Media

iBRUSSELS: iBRUSSELS:

Urbanity And Technology, Urbanity And Technology,

Close Encounters Of A Certain KindClose Encounters Of A Certain Kind

30 April 200830 April 2008

VUB, BrusselsVUB, Brussels


Broadband and Economic Recovery:some key messages

Broadband and Economic Recovery:some key messages

• Access to an affordable high speed broadband infrastructure fundamental element for individuals, enterprises and governments at all level

• Broadband is key to maintaining social contacts, cultural and political participation, finding jobs, learning skills, accessing information, accessing markets and cutting costs.

• ICT accounts for half the EU productivity growth: (broadband development could create 1 million jobs in Europe to 2015 and extra growth of €850bn)


Broadband and Economic Recovery

Broadband and Economic Recovery

• Europe needs to restructure its economy now to be strong in the high-speed and low-carbon post-crisis economy.

• Europe world leader in broadband take-up: December 2008 penetration rate 23%

Denmark, The Netherlands, Sweden and Finland among world leaders

But:

• Large gaps between Member states and between regions: Income, PC ownership, digital literacy, education, demographics, personal

attitudes, cultural differences

• Europe is falling behind on high speed broadbandP2P, Social Networks, IPTV, etc

• Coverage of rural areas not complete Average EU Member State coverage 93%.

30% of rural population no high speed internet


EU Broadband Penetration RateJanuary 2009

EU Broadband Penetration RateJanuary 2009

EU fixed broadband penetration rate - fixed BB lines per 100 population (January 2009)

10.9

%

11.2

%

11.7

% 13.2

%

13.4

% 16.3

%

16.5

%

17.1

%

17.4

%

17.5

%

18.2

%

19.0

%

20.2

%

20.2

%

21.0

%

21.4

% 24.6

% 27.5

%

27.5

%

27.7

%

28.4

%

28.8

% 30.7

%

31.3

%

36.2

%

37.3

%

23.9

%

22.9

%

0%

5%

10%

15%

20%

25%

30%

35%

40%

SK BG RO PL EL HU PT CZ LV LT CY IT ES IE SI AT EU27 MT EE DE BE FR UK LU FI SE NL DK

Data for NL as at October 2008

Korea

January 2008

43,1

EU US and Canada Japan and

50

100

99,281,6

81,6

Broadband lines per region (million)


Least expensive Broadband offer for 1Mb access line

Least expensive Broadband offer for 1Mb access line

0

10

20

30

40

50

60

70

80

CY SK LT BG BE PL ES PT RO DK LU MT DE LV UK EE SI FI HU NL IE

To

tal

co

st

pe

r m

on

th i

n €

/PP

P,

VA

T i

nc

lud

ed

January 07

Price of broadband offers in the EU vary considerably from a country to another:(taking into account PPP - purchase power parity)


Broadband penetration gap more and less developed M.S.Broadband penetration gap

more and less developed M.S.

From 8.5% in 2003 to 18.7% in 2005 and 28 points in 2008

8.5%

13.5%

19.2%

25.2%

31.9%

35.6%

7.6%

4.4%

1.4%0.5%0.1%0.0%

3.4

20.0

16.3

12.8

8.6

5.9

0%

5%

10%

15%

20%

25%

30%

35%

40%

2003 2004 2005 2006 2007 2008

BB

pen

etra

tio

n le

vel

MAX MIN EU AVERAGE Diference in % points

Penetration gap widens: from 3.4 % points in 2003 to 20% points in 2008


Correlation broadband price/penetration EU 27Correlation broadband price/penetration EU 27

0%

5%

10%

15%

20%

25%

30%

35%

40%

0 5 10 15 20 25 30 35 40 45 50

Least expensive price for a 1-2 Mbs monthly broadband access (€/PPP), April 2007

Bro

ad

ba

nd

pe

ne

tra

tio

n,

Ju

ly 2

00

7

EL: Out of scale. Data on prices for AT, CZ, IT, FR and SE not available

DK

SK

BGPLRO

LTHU LV

MT PT

SIIEES

EE DE

UK BELU

FI

NL

Inverse correlation prices/penetration ( higher broadband penetration lower prices)

Other factors beyond price affect penetration (coverage, quality of service, income, education, PC penetration, etc.


Broadband and Economic Recovery: EU actions

Broadband and Economic Recovery: EU actions

• June 2008, Council calls on Member States to June 2008, Council calls on Member States to define ambitious targets for define ambitious targets for broadband penetration at the national level, to:broadband penetration at the national level, to:

• reach an EU average broadband penetration of 30%

• and national penetration level of at least 15% by 2010

• November 2008, the Commission proposes the Economic Recovery plan: November 2008, the Commission proposes the Economic Recovery plan:

• € 5 bn for trans-European energy interconnections and broadband infrastructure projects

• Commission, Member States and stakeholders to develop a broadband strategy

• focus on under-served and high cost areas where the market does not deliver.

• The aim:

• reach 100% coverage of high speed internet by 2010.

• upgrade existing infrastructure

• promote competitive investments in fibre networks

• endorse the Commission's proposals to free up spectrum for wireless broadband.

• 20 March 2009, European Leaders approve €1.02bn for Broadband and 20 March 2009, European Leaders approve €1.02bn for Broadband and Innovative CAP Measures in Rural Areas and calls for EU strategy for Innovative CAP Measures in Rural Areas and calls for EU strategy for Broadband Broadband ..


The challenges ahead for an EU BB strategy

The challenges ahead for an EU BB strategy

• Move to a high speed internetMove to a high speed internet

• Open access and internet neutralityOpen access and internet neutrality

• Seamless access between fixed and mobileSeamless access between fixed and mobile

• Reaching 100% broadband Reaching 100% broadband

• Urban rural gap is gradually being overcome: the 1 extra Billion Euro will contribute to this effort.

• Take-up coverage gapTake-up coverage gap


Next stepsNext steps

• Greater regulatory certainty for Greater regulatory certainty for (potential) investors in BB(potential) investors in BB

• Agreement on telecom package

• NGA Recommendation

• State Aid Guidelines

• Overall strategy by end of 2009 Overall strategy by end of 2009


Exchanges of good practiceB3 Project

Exchanges of good practiceB3 Project

• Only thematic network on broadband in “Regions for Only thematic network on broadband in “Regions for Economic Change”Economic Change”

• Regions leaning from each other: self-help

• Demand aggregation: Yorkshire UK December 2008

• State aid: (Cataloña, 12-13 March 2009)

• Synergies Synergies

• with Broadband Platform: www.broadband-europe.eu on to-do list for broadband projects:

• Help to non-partners (workshops, events and maintaining contacts for exchanging information and experience.

• Conference in Turin (2-3 April) joint conference with the Conference in Turin (2-3 April) joint conference with the ECEC

• Focus on B3 results

• Information day for rural development authorities on €1 billion for BB


The role of the European Broadband Portal

The role of the European Broadband Portal

http://www.broadband-europe.euhttp://www.broadband-europe.eu//

Portal aims:Portal aims:

• to contribute to the to contribute to the opening and transparency of the opening and transparency of the broadband market in Europebroadband market in Europe

• To act as To act as a virtual meeting pointa virtual meeting point between ICT suppliers between ICT suppliers and local and regional public authorities. and local and regional public authorities.

• one-stop-shop information platformone-stop-shop information platform on broadband: on broadband: facilitating the exchange of ideas, experiences and good facilitating the exchange of ideas, experiences and good practices. Includes the practices. Includes the publication of calls for tenderpublication of calls for tender for publicly financed broadband projects from all over for publicly financed broadband projects from all over Europe. Europe.


Commission Support to B3 RegionsCommission Support to B3 Regions

Main Contact: Main Contact: DG Information Society & Media –[email protected]

Involved in follow-up: DG Regional Policy – Unit for thematic coordination, innovation

• DG Informatics – Unit for European eGovernment Services (IDABC)• Joint Research Centre – Unit for Spatial data infrastructures • DG Enterprise & Industry – Unit ICT for Competitiveness and Innovation

Associated: REGIO country desks of regions involved

Ad Hoc Involvement: • DG Competition: Unit on State Aid• DG AGRI: Rural Development issues