ict and regional integration in the eu and asean eu centre in singapore 29 october 2010

ICT and regional integration in the EU and ASEAN

EU Centre in Singapore

29 October 2010

ICT Counsellor - Delegation to Singapore

2

ICT in Europe’s economy

ICT sector = 5% of EU GDP / 40 to 50%

of EU productivity growth

Market of + / - 700 billion Euro (electronic

communications sector 350 billion Euro)

Mobile penetration 122% (prepaid 55%,

monthly paid 45%)


3

Broadband in Europe Broadband penetration 50% of EU households

(best EU countries above 70% - Denmark, Netherlands, Luxembourg, Sweden)

Fibre deployment (so far between 2 and 5 % of BB lines) accelerating / higher if no legacy (Lithuania, Romania, Slovakia, etc.)

Increase in BB speed available (2/3 between 2 and 10 Mbps; 23% over 10Mbps)

Mobile BB progressing rapidly (6% of EU population)


4

Europe’s internal market includes ICT products and services


5

An “internal market” for ICT implies…

Common standards (GSM, UMTS for mobile telephony, DVB for digital TV, etc.)

Common rules for ICT-based services (facilitate business and cross-border investments, support consumers’ rights)

Remove obstacles to free movement of ICT-based services (mobile phone roaming, territorial restrictions on copyright, etc.)


6

How does the EU support Europe’s ICT internal market?

EU Telecom regulatory framework introduced in 2002, improved in 2009 (ex-ante regulation to foster competition against incumbent fixed operators and arrival of new entrants)

Specific actions to remove obstacles to free movement (example: EU Roaming Regulation)

Broadband policy Competition policy (M&A, anti-competitive

behaviors)


7

Example of a proactive telecom policy: the EU mobile Roaming

Regulation

Introduced 2007 for calls between European countries = “Euro tariff”

Voice: cap is 0.39 Euro for calls made – 0.15 for calls received (1/07/2011 = 0.35 and 0.11) + per second billing after 30 seconds

SMS cap: 0.11 EuroMobile data downloading: 0.80 Euro by Mb cap

(wholesale) + automatic cut-off above 50 EuroCost of roaming inside Europe reduced by 70%

since 2007


8

“internal market” for ICT also implies broadband for all

“We must put the interests of Europe’s citizens and business at the forefront of the digital revolution and so maximise the potential of ICT to advance job creation, sustainability and

social inclusion” Neelie Kroes, EU Commissioner for the Digital Agenda

↓Digital Agenda (April 2010)

100% EU households with over 30Mbps BB by 2020 (50% over 100 Mbps)

all key cross-border public services online by 2015

All European to access health data online by 2015


9

EU “broadband for all” policy

Financial support / solidarity in favor of remote / less developed areas. Use of EU Regional funds available + clear rules for state aid schemes

Provide legal certainty! European Commission has just published a Communication (policy document) on high-speed broadband + a Recommendation (legal document) on NGA.

Support competition in telecom sector to reduce price and attractive content


10

What about the ASEAN region?


11

ASEAN – EU trade - ICT products

Main ASEAN trade partners with EU: Malaysia, Singapore, Thailand

ICT is 4th area of FDI from Singapore to the world

Ongoing and forthcoming FTA negotiations: Singapore, Vietnam, Malaysia

0

5

10

15

20

25

30

35

40

2007

2008

ASEANexports /mill USD

ASEANimports /mill USD


12

An ASEAN internal market for ICT? Yes…

“Increase broadband penetration through, amongst others, technology neutral approach, affordable solutions, innovative applications and usage models as well as relevant content to stimulate information flow within the region to further the goal of ASEAN as an inclusive, vibrant and integrated region”

ASEAN Telecom Ministers – Vientiane Declaration, October 2009


13

But…

Important development gap within ASEAN (example: broadband penetration: 24% of population in Singapore / 0.6% in Indonesia)

De facto protection of local players ASEAN Secretariat is a small structure (70

staff / EU Commission 23,000)


14

EU – ASEAN cooperation on ICT regulation

Support of conferences, regulatory dialogue (on spectrum management, cybercrime, etc.)

EU as ASEAN Partner in TELSOM process New support programme starting 2011:

implementation of ASEAN ICT Masterplan and spectrum management as priorities

Low participation of ASEAN players in EU ICT R&D Programme

EU - Singapore 2009 ICT Memorandum of Understanding not implemented so far


15

What can be learnt from the EU experience?


16

Key regulatory principles for telecom regulation in an internal market

Independent Regulatory Authority. (example: new EU Framework reinforces legal and financial independence of NRA)

Avoidance of dominant position – Use of ex-ante regulatory tools (including wholesale pricing, accounting and functional separation, etc.)

Consumers’ trust (contractual rights, privacy, security)


17

ICT regulatory news and trends in the EU - Also issues in ASEAN

countries

Reuse of digital dividend’s radiofrequencies to accelerate mobile broadband deployment

Debate on network neutralityGreen ICT as a growing issueNetwork and information security


18

Using EU experience, the ASEAN region can build an ICT internal market by

2015 !

Websitehttp://ec.europa.eu/dgs/information_society/index_en.htm

My [email protected]

Thank You!!!

http://ec.europa.eu/dgs/information_society/index_en.htm

mailto:[email protected]

ict and regional integration in the eu and asean eu centre in singapore 29 october 2010

Documents