Inês Nolasco Senior Regulatory Affairs Manager European Competitive Telecommunications Association

Outline Who we are, what we do, our membership Broadband – why it matters? Policy Recommendations & competition The EU BB Strategy – the Digital Agenda for Europe 2

European Competitive Telecommunications Association Leading pan-European telecoms association promoting market liberalisation and competition in the European communications sector 3

European Competitive Telecommunications Association 4 ECTA represents more than 100 companies, including leaders in the following market segments throughout Europe: Alternative providers of consumer broadband and triple-play services Providers of pan-European/global services to businesses Challenger mobile/wireless network operators and service providers ECTA holds two annual Regulatory Conferences each year. Next one in Nov/Dec 2014.

Some of our 100+ members 5

Broadband- why it matters? 6

10% increase in broadband penetration could lead to: 1-1.5% increase in annual GDP Increase by 1.5% in labour productivity ( ) (ref. Communication 2012 DAE) Duplicating broadband speed for an economy can increase GDP growth by 0.3% on average in OECD countries (Arthur D. Little & Chalmers University of Technology) Economic development & growth + achieving the MDGs + E-health, e-learning, e-Government; m-money m-commerce Broadband – why it matters? 7

Broadband: basic, fast (≥30 Mbit/s) & ultra-fast (≥100Mbit/s) always-on, high capacity connectivity, combined provision of multiple services simultaneously Underlying infrastructure:  copper (DSL)  fibre (Fttx, FTTH PON/P2P, FTTB, FTTC)  coaxial cable (Docsis 3.0)  mobile (3G&4G)  satellite Broadband & infrastructure 8

Technological choices – Fixed & mobile 9

“There is a significant body of evidence to suggest that private and competitive markets have successfully accelerated service delivery to a large customer base, boosting market growth, enhancing innovation, increasing subscriptions and reducing prices” (ITU World Telecommunications Development Report 2002: Reinventing Telecoms “There is a strong role for competition in boosting broadband penetration. Based on panel regressions of broadband penetration for 165 countries for ten years between , competitive markets are associated with broadband penetration levels some 1.4% higher on average for fixed broadband and up to 26.5% higher for mobile broadband. Competition has been a key driver for higher levels of uptake and investment in communications networks and services in many countries. Countries should implement pro-competitive regulation” (The State of Broadband 2013: Universalizing Broadband) Why does competition matter? 10

Promote market liberalization - competition & broadband penetration Review & update regulatory obligations - legal certainty, avoid radical changes, innovation, return on investment, national BB goals Consider open access approaches to infrastructure - access on fair, reasonable and equivalent terms – LLU, WBA, ducts,…) Introduce and develop a National Broadband Plan - higher fixed & mobile BB penetration; demand and supply side; reviewed regularly Update and utilize Universal service funds (USF) – where commercial provision not viable Review licensing schemes – simplified licensing Policy recommendations to maximize the impact of broadband – Broadband Commission 11

Review and reduce taxation – tax reduction & incentives Review policy frameworks for spectrum – harmonisation & release of spectrum for mobile BB Spur demand and introduce measures to stimulate the creation of local content Support accurate and timely statistical monitoring Consider undertaking public consultations on policy 2011 : 4 targets for tracking universal access to BB and digital inclusion for all Target 1: making BB policy universal (2015 – NBP, strategy or include BB in UAS) Policy recommendations to maximize the impact of broadband – Broadband Commission 12

Status of National Broadband Plans, mid Source: ITU World Telecommunication/ICT Regulatory Database.

Targets & policy instruments 14

15 The EU experience – the Digital Agenda for Europe

The Digital Agenda for Europe (2010) 16 The first of seven flagship initiatives under the Europe 2020 strategy. Aims to reboot Europe's economy and help Europe's citizens and businesses to get the most out of digital technologies Maximise the social and economic potential of ICT, most notably the internet (fast and ultra-fast BB) Contains 13 specific goals. Progress measured in the annual Digital Agenda Scoreboard. Reviewed in 2012 (e.g. create a stable regulatory environment; Connecting Europe Facility Loans)

Broadband targets 17 Coverage  BB for all by 2013  Fast-BB (≥ 30 Mbps) for all by 2020 Take-up  50% HH subscribing to ≥ 100 Mbps by 2020 Technology neutrality *Headline or actual speed? Upload? Quality? Openness?

Some regulatory tools & instruments 18 Broadband communication (2010) NGA Recommendation (2010) EU funding for Broadband State Aid Broadband Guidelines (2009/2013) Radio Spectrum Policy Programme (2012) Costing & Non- discrimination Recommendation (2013) Legislative proposal to reduce the costs of broadband deployment (Directive) (2013)

Thank you for your attention 19

Background slides 20

Broadband EU level 21 Nearly all EU HH (210m) had access to a standard broadband service through fixed or mobile technologies. Nearly 54% of EU households (113m) already had NGA services available capable of delivering ≥ 30Mbps Less than 1% of HH could only access standard broadband services through satellite broadband. More than 95% HH could access at least one fixed standard broadband service, implying that 4% could only access mobile broadband services.

Broadband EU level 22

Fixed & mobile broadband EU level 23