Post on 27-Mar-2015
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (1)
Broadband and social, economic and Broadband and social, economic and territorial cohesion:territorial cohesion:
Challenges, opportunities and good practices Challenges, opportunities and good practices
for regions to accelerate economic recoveryfor regions to accelerate economic recovery
Ken Ducatel
Head of Unit “Lisbon Strategy and i2010”
DG Information Society and Media
Region for Economic Change eventRegion for Economic Change event
1616thth of February 2009 of February 2009
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (2)
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)
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (3)
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: July 2008 penetration rate 21.7%
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
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (4)
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.
• Ongoing discussion in the CouncilOngoing discussion in the Council to approve (or not) the measure: final to approve (or not) the measure: final decision expect in March/April 2009.decision expect in March/April 2009.
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (5)
How the €1bn of EU money reach rural areas
How the €1bn of EU money reach rural areas
• Money into the Rural Development Programmes, Money into the Rural Development Programmes, managed by rural development managing authorities. managed by rural development managing authorities.
• Deadline 30 June 2009 to Modify Rural Development Deadline 30 June 2009 to Modify Rural Development Programmes: Programmes: identify projects and expenditure for 2009identify projects and expenditure for 2009
• State Aid: State Aid:
• All projects will require notification and approval under state aid rules
• January 2009: Public consultation on “Simplified procedure for the treatment of certain types of State aid”
• Allocation of funds: Allocation of funds: on the basis of the current distribution on the basis of the current distribution for the European Agricultural Fund for Rural Development. for the European Agricultural Fund for Rural Development.
• Cofinancing rate:Cofinancing rate:
• 90% in Convergence regions • 75% in non-Convergence regions• If agreed by the Council, additional co-financing of 10%
in 2009 to promote the economic recovery in Member States
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (6)
Type of Broadband Measures that can be financed under RD
Type of Broadband Measures that can be financed under RD
• Creation of new broadband infrastructure: including backhaul facilities (e.g. fixed, terrestrial wireless, satellite-based or combination of technologies). include financing of all necessary civil work (including buildings, ducts and masts); relevant software systems and technical equipment necessary to deploy an open communication infrastructure
• Upgrade of existing broadband infrastructure: civil work, software systems and technical equipment for the replacement or upgrade of last mile connection, digitisation of the local switches, LAN network, or backhaul to more centralised point of presence of backbone
• Laying down passive broadband infrastructure (e.g.: civil engineering works such as ducts, and other network elements such as dark fibre, etc.) also in synergy with other infrastructures (energy, transport, water, sewerage networks etc.).
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (7)
EU Broadband Penetration RateJanuary 2008
EU Broadband Penetration RateJanuary 2008
7,6% 8,
4% 8,8% 9,1% 9,
8%
13,7
%
13,8
%
14,2
%
14,6
%
15,0
%
16,1
%
16,9
%
17,1
%
17,3
%
17,4
%
18,3
%
21,2
% 23,3
%
23,8
% 25,4
%
25,6
%
25,7
%
31,2
%
34,2
%
34,6
%
35,6
%
19,0
%
20,0
%0%
5%
10%
15%
20%
25%
30%
35%
40%
BG PL SK EL RO LT CY HU CZ LV PT MT IT SI IE ES AT EU27 EE FR DE LU BE UK SE NL FI DK
Source: Commission services. Data for FR, NL, AT, EE and LT refer to October 2007
Broadband lines per region (million) January 2008
99,281,6
43,1
50
100
EU US and Canada Japan andKorea
EU penetration average: 20%
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (8)
DSL Coverage as % population December 2007
DSL Coverage as % population December 2007
Broadband Coverage: Member States and EU averages92
% 100%
80% 85
%10
0%85
% 96%
99%
96%
86% 91
%92
%89
% 94%
87%
88% 10
0%99
%99
%96
%64
%95
%
74%
92%
91% 98
%10
0%93
%
0%10%20%30%40%50%60%70%80%90%
100%
Aus
tria
Bel
gium
Bul
garia
Cyp
rus
Cze
chD
enm
ark
Est
onia
Finl
and
Fran
ceG
erm
any
Gre
ece
Hun
gary
Icel
and
Irela
ndIta
lyLa
tvia
Lith
uani
aLu
xem
bour
gM
alta
Net
herla
nds
Nor
way
Pol
and
Por
tuga
lR
oman
iaS
lova
kia
Slo
veni
aS
pain
Sw
eden U
KE
U a
vera
ge
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (9)
Broadband Coverage Urban V Rural (Dec 2007)
0%
20%
40%
60%
80%
100%
120%
Au
str
ia
Be
lgiu
m
Bu
lga
ria
Cyp
rus
Cze
ch
Re
pu
blic
De
nm
ark
Esto
nia
Fin
lan
d
Fra
nce
Ge
rma
ny
Gre
ece
Hu
ng
ary
Ice
lan
d
Ire
lan
d
Ita
ly
La
tvia
Lith
ua
nia
Lu
xe
mb
ou
rg
Ma
lta
Ne
the
rla
nd
s
No
rwa
y
Po
lan
d
Po
rtu
ga
l
Ro
ma
nia
Slo
va
kia
Slo
ve
nia
Sp
ain
Sw
ed
en
UK
EU
ave
rag
e
Urban Rural
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (10)
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
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (11)
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)
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (12)
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.
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (13)
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
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (14)
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 (1-2 April) joint conference with the Conference in Turin (1-2 April) joint conference with the EC.EC.
• Focus on B3Regions project results: demand aggregation, BB state aid issues and forthcoming work
• Information day for rural development authorities on €1 billion for BB.
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (15)
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.
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (16)
Commission Support to B3 RegionsCommission Support to B3 Regions
Main Contact: Main Contact: DG Information Society & Media –Guido.Acchioni@ec.europa.eu
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
. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010 Page (17)
What’s NextWhat’s Next
Policy:
• 12 -13 March: B3 regions: workshop on BB and State aid (Barcelona)
• 1-2 April: Joint B3Regions EC Conference (Turin)
• November 2009: i2010 event In Sweden
Further information
• i2010: http://europa.eu.int/information_society/eeurope/i2010/i2010/index_en.htm
• Digital Divide: http://europa.eu.int/information_society/eeurope/i2010/digital_divide/index_en.htm
• European Broadband Portal: http://www.broadband-europe.eu/ )
• B3Regions: http://www.b3regions.eu/