Ken Ducatel

Unit C1 Digital Agenda: Policy Coordination

DG Information Society and Media, European Commission

Virtuous cycle of the digital economy

Commonly

agreed targets

with the

Member States

By 2013, 100% broadband coverage

for all

By 2020, fast broadband coverage at

30 Megabits per second available to

all EU citizens,

with at least half European

households subscribing to

broadband access at 100 Megabits

per second

• DAE action 46DAE action 46DAE action 46DAE action 46: COM to report on MS’ progress with developing and implementing National Broadband Plans (NBPs)

• Sharing of knowledge about best practices and continual dialogue on implementation issues are mutually beneficial

• Multistep process:Multistep process:Multistep process:Multistep process:

• Iterative process: Analysis to be repeated in 2013repeated in 2013repeated in 2013repeated in 2013

Report onReport onReport onReport on National Broadband Plans National Broadband Plans National Broadband Plans National Broadband Plans ––––Objectives and Objectives and Objectives and Objectives and Roadmap (SWD(2012)68)Roadmap (SWD(2012)68)Roadmap (SWD(2012)68)Roadmap (SWD(2012)68)

• submission of NBP templates (30 countries)

• discussion in DAE HLG in June 2011

• series of cluster workshops (Rome/ Vienna/ Paris/ Warsaw, attendance: 29 countries)

• circulation of draft report to MS for validation

• preview of findings in DAE + eComms HLG in January 2012

• adoption: end of March/ early April 2012

complete

complete

complete

complete

• Paper/workshops explored several crucial aspects of national broadband plans:

SWP on NBPs – preview of findings

I.I.I.I. Targets, strategic and institutional aspectsTargets, strategic and institutional aspectsTargets, strategic and institutional aspectsTargets, strategic and institutional aspects

II.II.II.II. Public funding for NGAPublic funding for NGAPublic funding for NGAPublic funding for NGA

III.III.III.III. Measures to facilitate broadband investmentMeasures to facilitate broadband investmentMeasures to facilitate broadband investmentMeasures to facilitate broadband investment

IV.IV.IV.IV. Stimulating demand for subscriptions and servicesStimulating demand for subscriptions and servicesStimulating demand for subscriptions and servicesStimulating demand for subscriptions and services

• Paper focuses on presenting good practice examples

• Basic broadbandBasic broadbandBasic broadbandBasic broadband: most country targets in line with DAE [speeds

range from 512kpbs to 4 Mbps]

• Meeting current set of basic broadbandbasic broadbandbasic broadbandbasic broadband targets would raise EU-wide

coverage to c. 99% by 2013

• Considerable variation in NGA coverage targetsNGA coverage targetsNGA coverage targetsNGA coverage targets from “no target” to

full coverage with more than100 Mpbs by 2020 or similar

• Some countries hesitate to go well beyond what appears achievable

by market forces

• Adoption of adequate national NGA targetsNGA targetsNGA targetsNGA targets will become part of the

conditionalitiesconditionalitiesconditionalitiesconditionalities of Structural Fundsof Structural Fundsof Structural Fundsof Structural Funds

I. Targets, strategic and institutional aspects (a)I. Targets, strategic and institutional aspects (a)I. Targets, strategic and institutional aspects (a)I. Targets, strategic and institutional aspects (a)

• So far low priority for moremoremoremore symmetrical bandwidthssymmetrical bandwidthssymmetrical bandwidthssymmetrical bandwidths: generally

plans do not specify upload speeds (exception: Luxembourg)

• NGA takeNGA takeNGA takeNGA take----up targets rare up targets rare up targets rare up targets rare (6 countries): sometimes deemed

unnecessary, not all embrace rationale

• Concept of take-up targets and its role and value in broadband

plans needs further clarification

• Implementation of plans is complicated by need to coordinate

multiple institutionsinstitutionsinstitutionsinstitutions (horizontally and vertically) – superior model

for a lean and efficient structure still to emerge

• MonitoringMonitoringMonitoringMonitoring of the implementation of plans by an independent

external body on a regular basis carried out only by few (as yet)

I. Targets, strategic and institutional aspects (b)I. Targets, strategic and institutional aspects (b)I. Targets, strategic and institutional aspects (b)I. Targets, strategic and institutional aspects (b)

• Public funding still mostly focused on basic broadbandfocused on basic broadbandfocused on basic broadbandfocused on basic broadband

• Current public NGA funding/investment insufficient to close gap between expected private and total required investment [estimated at c. €180 to €270 bn for DAE broadband targets]

• Predominant attitude is to wait for more clarity to arise about prospective market developments, minority have designed NGA minority have designed NGA minority have designed NGA minority have designed NGA funding/financing schemesfunding/financing schemesfunding/financing schemesfunding/financing schemes

• Some innovative models to roll-out NGA/fibre backhaulNGA/fibre backhaulNGA/fibre backhaulNGA/fibre backhaul countrywide

• In at least 5 (larger) MS regional authorities/local municipalitiesregional authorities/local municipalitiesregional authorities/local municipalitiesregional authorities/local municipalities are implementing own NGA projects

• 3 countries (partially) reinvest LTE auction proceedsLTE auction proceedsLTE auction proceedsLTE auction proceeds

• Alternative sources of funding (e. g. usersusersusersusers) warrant reflection

II. Public funding for NGAII. Public funding for NGAII. Public funding for NGAII. Public funding for NGA

• About half of Member States have embarked on projects to set up

infrastructure mappingsinfrastructure mappingsinfrastructure mappingsinfrastructure mappings, however, most baulk at enacting extension

of access obligationsaccess obligationsaccess obligationsaccess obligations beyond the regulatory framework

• CoCoCoCo----deploymentdeploymentdeploymentdeployment measures receive less attention than infrastructure-

sharing – a few attempts to set up national construction works

registers, some countries envisage laying ducts alongside new

roads or prior notice of works

• 2 countries probe potential of overhead lines/ducting

• Possibilities for fostering cocococo----investmentinvestmentinvestmentinvestment are yet to be fully exploited

• Detailed broadband coverage mappingbroadband coverage mappingbroadband coverage mappingbroadband coverage mapping often not available yet

III. Measures to facilitate broadband investment (a)Measures to facilitate broadband investment (a)Measures to facilitate broadband investment (a)Measures to facilitate broadband investment (a)

• Little evidence of streamlining of administrativestreamlining of administrativestreamlining of administrativestreamlining of administrative procedures to cut

costs

• Repurposing of Digital DividendDigital DividendDigital DividendDigital Dividend spectrum is progressing with

further auctions/assignments underway, delays in a few cases

• 2 announcements (Sweden, UK) to free up additional spectrum in

the run-up to 2020 (up to 500 MHz)

• Radio Spectrum Policy Programme (RSPP) will impose tradabilitytradabilitytradabilitytradability of

licences for harmonised bands, proactive countries have already

enacted respective national provisions

• Wireless broadband is considered crucial element of the mix of

solutions for 30 Mbps coverage target

III. Measures to facilitate broadband investment (b)Measures to facilitate broadband investment (b)Measures to facilitate broadband investment (b)Measures to facilitate broadband investment (b)

• 3 broad groups3 broad groups3 broad groups3 broad groups of demand side measures: stimulating subscriptions,

digital services, complementary skills

• No known measures targeting NGA subscriptions so far – lack of

consensus on necessity?

• Plenty of activities in eGov, eHealth and eEducation

• Publicly-funded ICT training for (certain) users available in most countries

N Deeper understanding of the rationaleunderstanding of the rationaleunderstanding of the rationaleunderstanding of the rationale for demand stimulation would

be beneficial (virtuous cycle)

N Demand stimulation measures could be better linked and alignedbetter linked and alignedbetter linked and alignedbetter linked and aligned to

other aspects of broadband plans and policy

IV. Stimulating demand for subscriptions/servicesStimulating demand for subscriptions/servicesStimulating demand for subscriptions/servicesStimulating demand for subscriptions/services

• No “one-size-fits-all” solutions, but best practices – mutually beneficial

dialogue to continuedialogue to continuedialogue to continuedialogue to continue

• Sharing of knowledge and cross-country cooperation supports effective

implementation of broadband plans

• Adoption of explicit NGA strategiesexplicit NGA strategiesexplicit NGA strategiesexplicit NGA strategies crucial:

N Pledge to promote growth needs to be backed by credible credible credible credible

commitment to NGAcommitment to NGAcommitment to NGAcommitment to NGA deployment

N Clear visionClear visionClear visionClear vision and perspective for NGA eases market uncertaintyeases market uncertaintyeases market uncertaintyeases market uncertainty and

stimulates additional private investment

• COM plans to perform another round of analysis by the end of 2013

Conclusion and outlook