Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 BROADBAND POLICIES FOCUS ON THE ITALIAN GOVERNMENT ACTION PLAN Daniela Battisti Member of the Executive Committee for Broadband Action Plan Ministry.

Similar presentations

Presentation on theme: "1 BROADBAND POLICIES FOCUS ON THE ITALIAN GOVERNMENT ACTION PLAN Daniela Battisti Member of the Executive Committee for Broadband Action Plan Ministry."— Presentation transcript:

1 1 BROADBAND POLICIES FOCUS ON THE ITALIAN GOVERNMENT ACTION PLAN Daniela Battisti Member of the Executive Committee for Broadband Action Plan Ministry for Innovation and Technology (Italy)

2 2 Agenda - Do we Need/Have a Broadband Definition? - e-Europe2005 and the Sevilla Summit -The Italian BB Action Plan -Focus on Public Demand

3 3 One day, the elephant said to the bird: I wish I had wings – And the bird: No problem. Just get them! The elephant asked again: But, how do I get them? I do not know! I just do policies. The bird exclaimed. TO BEGIN WITH…

4 4 Broadband communications refers to the technological enviroment that permits the use of digital technologies at maximum levels of interactivity (Source: Italian Broadband Report, Feb 2002) DO WE NEED/HAVE A BROADBAND DEFINITION ?


6 6 Accordingly, the development of broadband in Italy is considered an economic policy objective priority. In such an environment, the Government must intervene to ensure that the development of broadband is as homogeneous and rapid as possible nationwide. BB APPROACH IN ITALY

7 7 Government has included the Broadband Plan in the Economic and Financial Planning Document for the period 2002-2006. Plan will: 1) assess, 2) identify the key importance of broadband, 3) formulate measures 4) ensure implementation Interministerial Broadband Task Force, (1st phase executed), has reaffirmed that BB is a prerequisite for the economic development of the country. Objective of 2 nd (current phase) is to formulate a plan. 3 rd phase will consist of the implementation of the plan itself. The Principles for Action (Italy)

8 8 Vision 3 Main Macro-phases Owner Executive Committee for the definition of a Broadband Plan for Italy (to be defined)) Time horizon Deliverables Broadband Plan Medium-term operational projects and rapid actions (pilot projects) 1 Planning 2 Implementation 3 Macrophase Broadband Task Force Broadband Report... June 2002 March 2002 September 2001 Final phase

9 9 What Actions can ensure BB Development by 2005 The objective of the plan is the development of the market within the established time frame (2005) Snapshot of situation hitherto Current situation (planned) Additional actions INFRASTRUCTURE PRIVATE SECTOR DEMAND PUBLIC SECTOR DEMAND Evaluation of the impact on productivity and the national income INFRASTRUCTURE PRIVATE SECTOR DEMAND PUBLIC SECTOR DEMAND PLANNING OF ACTIVITIES MECHANSISMS FOR IMPLEMENTATION MECHANISMS FOR CONTROL Objectives Levels of interactivity & evolution over time

10 10 The achievement of objectives requires public intervention to enhance infrastructure and generate public and private demand Lines of intervention Purpose of interventions Purpose of action generate incremental investment by private-sector operators over and above that invisaged in current declared business plans generate an incremental market which will create a substantial and permanent increase in tax revenues InfrastructurePrivate Demand Public Demand ABC Scopo degli interventi Coverage objectives 85-90% of government buildings 65% of businesses 35% of households

11 11 The special nature of the Italian infrastructure situation makes enabling and stimulus action essential Lack of alternatives to copper-based connections for access networks and, particularly, the absence of cable modems Copper-based network delivers better performance than the European average (better quality, lower average distances in the local loop) Development of fibre optics could be fostered using existing conduits owned by the incumbent The building of extensive enabling infrastructure for the development of WiFi The development of experimental telecommunication services that are delivered through the electricity grid Special nature of Italian infrastructure technological competitive A sufficient level of competition has not been reached in the market, Necessary actions Regulatory measures Enabling and preliminary actions Stimulus activities Administrative simplification A Infrastructure

12 12 Actions to boost private demand are aimed at both consumers and businesses producing content, services and applications Public support for the production of content, services and applications Support the expansion of demand for services with a high degree of interactivity Incentives to content, service and application producers using measures similar to those introduced by the Tremonti bis law Objectives Actions Supply-side fiscal measures Demand-side fiscal measures Funding Fiscal incentives to consumers in the form of tax endowments Use of Community financing (participation in eEurope projects) B Private Demand

13 13 Public demand is essential for the development of Broadband Public demand: -Brings about an expansion in direct demand from government offices as well as indirect demand from the users of the applications -Demonstrates the utility of new technologies and improves the likelihood of them being taken up -Creates a critical mass, including in those areas where the market is least developed, which fosters the supply of connectivity, services and applications, and reduces prices Role The potential of public demand can be tapped by using demand aggregation methods Public demand should be able to make use of structural funds and other available sources of European financing (Ten Telecom, IDA, IST, etc.) The objective is to take some of the funds set aside for the development of the information society and channel them into projects that will bring broadband to the most disadvantaged areas The Department for Innovation and Technologies must act as a coordinating body to avoid duplication,, encourage cooperation, capitalise on the intersectoral features of the projects of other government departments and maximise synergies. Actions C Public Demand

14 14 To act as a stimulus, public-sector demand must expand from current broadband coverage of 20% to more than 80% by 2005 Increase by 2005 of broadband coverage of government from current level of 20% to 87%, with at least 15% of connections at speeds over 2 Mbit/s C Public Demand Schools 3 NHS buildings 4 Total Local govt 2 Central govt 1 Current situation 10,0006,300 (63%) 13,0007,900 (61%) 42,00034,500 (82%) 20,00018,600 (93%) 85,00067,300 (79%) 3,700 (37%) 4,300 (33%) 7,500 (18%) 1,400 (7%) 16,900 (20%) 500 (5%) 1,000 (8%) 6,500 (15%) 3,000 (15%) 11,000 (13%) 9,500 (95%) 12,000 (92%) 35,500 (85%) 17,000 (85%) 74,000 (87%) Number of buildings NarrowbandBroadbandNarrowbandBroadband Objectives 1)Source: CT RUPA and individual departments 2)Source : individual regions 3)Inclusive of central and local governments. Source: Ministry of Universities, Education & Research (targets set on basis of eEurope 2005 plan) 4)Source: Ministry of Health (targets set with reference to strategic goals of National Health Plan and eEurope 2005) Figures compiled by Roland Berger Strategy Consultants

15 15 The actions will have an impact around the country, especially in areas with the lowest development potential LowHigh Distribution and impact of actions A Areas with high development potential B Areas with medium development potential C Areas with low development potential Tax relief (Tremonti bis) Subsidised infrastructure loans State contributions to structural funds Public-sector demand Incentives for private demand Infrastructure contributions - - Preliminary

16 16 The Government will provide 1,200 million in funds for public demand and 600 million for infrastructure building and private demand Cost of Incentive Plan* Infrastructure Public demand Private demand Total investment of 500 million to leverage private resources worth 2,500 million Total investment 100 million (minimum value) 500 100 1,200 Public demand entails total costs of 1,000 – 1,200 million, with reference to the savings achieved through demand aggregation Incremental spending 2003-2005 (millions ) Central govt 150 State budget Local govt Schools 550 Hospitals Total 700 Local gov budget 150 100 250 500 Total 150 650 250 1,000 – 1,200 150 Economies achieved by demand aggregation * The resources activated make it possible eventually to achieve tax revenues sufficient to ensure full coverage of the costs incurred 200 1000

17 17 Public sector demand is one of the main levers for the development of the BB market, calling for models of demand aggregation Public sector demand ALL ACTIVITIES 1.Mapping public sector demand for connectivity (Unified Government Network (RUPA)-Regional networks- e-government in local authorities), and digital services, and mapping the related implementation plans (drafted by the Department for Innovation and Technologies, other branches of central government, the regions and e-government in local authorities) 2.Processing of information received and identification of current and projected public sector demand in terms of advanced interactivity 3.Selecting models for actions (demand aggregation) 4.Incidence of public sector demand on the economic situation of operators (business plan) and the planning of actions Mapping central and local government departments ACTIVITIES UNDERTAKEN TO DATE Demand aggregation Public sector demand / and broadband

18 18 Regions/Local Government were Requested to Provide Detailed Information MAPPING SPACE Regions Provinces Municipalities Schools Hospitals INFORMATION REQUESTED Logistics of offices Connectivity Digital services 8,100 municipalities have been addressed + all the Regions

19 19 Mapping Public Administration is a Key Step… INFORMATION REQUIRED Logistics of offices Connectivity Digital services Main peripheral offices of ministries, local non- economic government bodies and other agencies Mapping of Unified Government Network (RUPA) All offices of ministries, local non-economic government bodies and other agencies Geographically referenced database Ministry of Education, Universities and Research Ministry of Justice Ministry of Health Ministry for the Economy Ministries Direct involvement in Public Demand Committee

20 20 … While Contributing to the Acceleration of BB Greater efficiency in government procurement and consequent economies of scale Greater penetration of broadband in the public sector at low operating costs Impact on the market for broadband services of combining public with private-sector demand Possibility of defining minimum bandwidth standards for the entire public administration Benefits of aggregating public sector demand for broadband services 1 2 3 4 5 Increase in demand for broadband fromwithin the public sector

21 21 This telephone has too many shortcomings to be seriously considered as a means of communications. The device is inherently of no value to us -- Western Union 1876 Broadband: In the absence of substantial demand does it matter? We believe it does

Download ppt "1 BROADBAND POLICIES FOCUS ON THE ITALIAN GOVERNMENT ACTION PLAN Daniela Battisti Member of the Executive Committee for Broadband Action Plan Ministry."

Similar presentations

Ads by Google