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 + / billion Euro (electronic communications sector 350 billion Euro)  Mobile penetration 122% (prepaid 55%, monthly paid 45%)

ICT Counsellor - Delegation to Singapore 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)

ICT Counsellor - Delegation to Singapore 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.)

ICT Counsellor - Delegation to Singapore 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)

ICT Counsellor - Delegation to Singapore 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 Euro Mobile data downloading: 0.80 Euro by Mb cap (wholesale) + automatic cut-off above 50 Euro Cost of roaming inside Europe reduced by 70% since 2007

ICT Counsellor - Delegation to Singapore 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

ICT Counsellor - Delegation to Singapore 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

ICT Counsellor - Delegation to Singapore 10 What about the ASEAN region?

ICT Counsellor - Delegation to Singapore 11 ASEAN – EU trade - ICT products  Main ASEAN trade partners with EU: Malaysia, Singapore, Thailand  ICT is 4 th area of FDI from Singapore to the world  Ongoing and forthcoming FTA negotiations: Singapore, Vietnam, Malaysia

ICT Counsellor - Delegation to Singapore 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

ICT Counsellor - Delegation to Singapore 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)

ICT Counsellor - Delegation to Singapore 14 EU – ASEAN cooperation on ICT regulation SSupport of conferences, regulatory dialogue (on spectrum management, cybercrime, etc.) EEU as ASEAN Partner in TELSOM process NNew support programme starting 2011: implementation of ASEAN ICT Masterplan and spectrum management as priorities LLow participation of ASEAN players in EU ICT R&D Programme EEU - Singapore 2009 ICT Memorandum of Understanding not implemented so far

ICT Counsellor - Delegation to Singapore 15 What can be learnt from the EU experience?

ICT Counsellor - Delegation to Singapore 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)

ICT Counsellor - Delegation to Singapore 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 neutrality  Green ICT as a growing issue  Network and information security

ICT Counsellor - Delegation to Singapore 18 Using EU experience, the ASEAN region can build an ICT internal market by 2015 ! Website My Thank You!!!