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. Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (1) Broadband and social, economic and territorial cohesion: Challenges,

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Presentation on theme: ". Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (1) Broadband and social, economic and territorial cohesion: Challenges,"— Presentation transcript:

1 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (1) Broadband and social, economic and territorial cohesion: Challenges, opportunities and good practices for regions to accelerate economic recovery Ken Ducatel Head of Unit Lisbon Strategy and i2010 DG Information Society and Media Region for Economic Change event 16 th of February th of February 2009

2 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (2) 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)

3 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (3) 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 broadband P2P, Social Networks, IPTV, etc Coverage of rural areas not complete Average EU Member State coverage 93%. 30% of rural population no high speed internet

4 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (4) Broadband and Economic Recovery: EU actions June 2008, Council calls on Member States to define ambitious targets for broadband penetration at the national level, to:June 2008, Council calls on Member States to define ambitious targets for 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 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 Council to approve (or not) the measure: final decision expect in March/April 2009.Ongoing discussion in the Council to approve (or not) the measure: final decision expect in March/April 2009.

5 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (5) How the 1bn of EU money reach rural areas Money into the Rural Development Programmes, managed by rural development managing authorities.Money into the Rural Development Programmes, managed by rural development managing authorities. Deadline 30 June 2009 to Modify Rural Development Programmes: identify projects and expenditure for 2009Deadline 30 June 2009 to Modify Rural Development Programmes: identify 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: on the basis of the current distribution for the European Agricultural Fund for Rural Development.Allocation of funds: on the basis of the current distribution 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

6 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (6) 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.).

7 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (7) EU Broadband Penetration Rate January 2008 EU penetration average: 20%

8 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (8) DSL Coverage as % population December 2007

9 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (9)

10 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (10) Broadband penetration gap more and less developed M.S. From 8.5% in 2003 to 18.7% in 2005 and 28 points in 2008 Penetration gap widens: from 3.4 % points in 2003 to 20% points in 2008

11 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (11) Least expensive Broadband offer for 1Mb access line CYSKLTBGBEPLESPTRODKLUMTDELVUKEESIFIHUNLIE Total cost per month in /PPP, VAT included January 07 Price of broadband offers in the EU vary considerably from a country to another: (taking into account PPP - purchase power parity)

12 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (12) Correlation broadband price/penetration EU 27 0% 5% 10% 15% 20% 25% 30% 35% 40% Least expensive price for a 1-2 Mbs monthly broadband access (/PPP), April 2007 Broadband penetration, July 2007 EL: Out of scale. Data on prices for AT, CZ, IT, FR and SE not available DK SK BG PL RO LT HU LV MTPT SIIE ES EE DE UKBE LU 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.

13 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (13) 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% broadbandReaching 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

14 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (14) Exchanges of good practice B3 Project Only thematic network on broadband in Regions for Economic ChangeOnly thematic network on broadband in Regions for Economic Change Regions leaning from each other: self-help Demand aggregation: Yorkshire UK December 2008 State aid: (Cataloña, March 2009) SynergiesSynergies with Broadband Platform: on to-do list for broadband projects:www.broadband-europe.eu Help to non-partners (workshops, events and maintaining contacts for exchanging information and experience. Conference in Turin (1-2 April) joint conference with the EC.Conference in Turin (1-2 April) joint conference with the 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.

15 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (15) The role of the European Broadband Portal Portal aims: to contribute to the opening and transparency of the broadband market in Europeto contribute to the opening and transparency of the broadband market in Europe To act as a virtual meeting point between ICT suppliers and local and regional public authorities.To act as a virtual meeting point between ICT suppliers and local and regional public authorities. one-stop-shop information platform on broadband: facilitating the exchange of ideas, experiences and good practices. Includes the publication of calls for tender for publicly financed broadband projects from all over Europe.one-stop-shop information platform on broadband: facilitating the exchange of ideas, experiences and good practices. Includes the publication of calls for tender for publicly financed broadband projects from all over Europe.

16 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (16) Commission Support to B3 Regions Main Contact: Main Contact: DG Information Society & Media – 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

17 . Ken Ducatel: : DG Information Society and Media, Unit: Lisbon Strategy and i2010Page (17) Whats Next Policy: 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: ndex_en.htm ndex_en.htm Digital Divide: divide/index_en.htm divide/index_en.htm European Broadband Portal: )http://www.broadband-europe.eu/ B3Regions:


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