1 EU Regional Policy … supporting improved broadband access John WALSH Unit D.2. Thematic development, innovation Regional Policy Directorate General European Commission

2 Investment Guidelines for ICTs Demand / services: Uptake of ICTs by firms and households investment in human capital Promote an open and competitive digital economy and inclusive society Access: Ensure availability of ICT infrastructure where the market fails to provide it at an affordable cost. See:

3 Planned ICT Investments Relative spending by country as % of EU support

4 Allocations to Broadband Project selection to end-2009

5 Known ERDF broadband / NGA projects Major projects (>50m total cost) 6 so far all - Fr 2 – UK 2 (NGA) – LT – IT 522 m in total 34% average ERDF grant NGA – 10 recent state aid approvals involving ERDF: UK - 3 cases (Cornwall, Shetlands, Yorkshire) Spain - 2 cases (Galicia, National) Estonia (Estwin), Finland, Italy, Portugal, Sweden, - 1 case each; More expected

6 Challenges for public authorities Capacity to conceive & manage such schemes with public interest in mind (ensuring competition) Consulting, coordinating players … public & private Clear definition of objectives – not just of technological solution but of benefits Measurement of benefits

7 Supporting policy learning Learning Networks: Guidance on demand aggregation, funding models, state aid, e-government, observatories Broadband portal: LinkLink Study on financing models for regions - forthcoming

8 DG REGIO Guide on Broadband Implementation AGRI - COMP - INFSO - REGIO Provide a basis for independent guidance for broadband investment by public authorities Facilitate effective use of allocated EU funds. Foreseen publication: June 2011

9 Present models of investment on the basis of existing projects already examined and approved under regional/rural and state aid rules. Main tasks include various forms of PPPs, user-b a sed initiatives draw lessons from past cases; identify success factors of successful state aid broadband projects analyse advantages/disadvantages of different models intervention Elements to address Structuring a call for public procurement effects of the conditions required by the state aid rules (e.g. mapping, public consultation, "open access", price benchmarking, etc.) Other broadband guidelines Scope of guide Guide

10 Analysys Mason - projects from W. Europe Portugal Spain France United Kingdom Ireland Iceland Norway Sweden Finland Monaco Switzerland Italy Germany Belgium Netherlands Luxembourg Liechtenstein San Marino Vatican City Andorra Austria Denmark Malta EUR37m 3-year plan for FTTP nationally EUR422m Parisian public- private public- owned infrastructure build EUR500m 8-year public-private project to construct regional FTTH EUR223m national public- private wholesale infrastructure build EUR600m Catalan FTTH public-private plan EUR120m fibre infrastructure built owned by Zurich municipality EUR141m national plan for public-private broadband access networks EUR18m public- private FTTH plan to 100% of homes in Amsterdam Planned FTTH built and owned by City of Vienna to 1m homes National EUR210m rural broadband access public- private plan Publicly-owned utility co. building FTTH in 10 urban municipalities Stockholm public-built and funded non-profit FTTH infrastructure EUR137m 6-year public-private plan for national 100Mbit/s access

11 In E. Europe … little public detail National strategy to encourage operators to connect new users EUR790m 8-year national strategy in place EUR37m public plan for FTTH to 90% of homes in Wielkopolska Public fund 75% of costs for projects under National Access Plan EUR2.1bn 4-year private- partnership FTTH plan for 2m homes in Athens EUR73m 5-year national private- partnership plan, to tender in 2011 EUR20.4m 6- year national broadband access plan 25-year staged FTTH roll-out in Zvolen pop Public-private partnership for urban fibre network rings EUR11m national access mixed- technology plan EUR60m 5-year plan to extend existing network for rural access EUR384m national public- private partnership fibre network EUR23.3m rural access plan with 35% public funding Romania Moldova Poland Belarus Lithuania Estonia Latvia Czech Rep. Slovak Rep. Hungary Serbia Slovenia Bosnia- Herzegovina Albania Macedonia Greece Bulgaria Georgia Azerbaijan Armenia Montenegro Croatia Cyprus

12 3 degrees of state involvement Build, own and operate network Stockholms FTTH network was entirely constructed by StokAB, a public company wholly owned by the City of Stockholm. StokAB initially offered dark fibre only, but now also operates the active infrastructure, manages wholesale open access for retail service providers, and administrates municipal end-user services at layer 3 of the network. Fund network and take ownership after a set date The SICOVAL conglomerate provided 27% of the funding for the construction of the infrastructure in its municipalities. In return, the partner operator manages the network under a concession for a fixed period of 20 years. At the end of this period, the network reverts wholly to the control and ownership of the public conglomerate. Fund network The Xarxa Oberta network is yet to be built, but the proposal is that public money will account for 73% of the construction costs. Despite this undertaking, there is no provision in the arrangement of the project for the resulting infrastructure to become public property. Instead the network is to remain the property of the company tendered to build and operate it. Iceland Austria Portugal Spain France Romania Moldova Poland Belarus Lithuania Estonia Latvia United Kingdom Ireland Norway Sweden Finland Monaco Switzerland Italy Germany Belgium Netherlands Luxembourg Liechtenstein San marino Vatican City Andorra Czech Rep. Slovak Rep. Hungary Serbia Slovenia Bosnia- Herzegovina Albania Macedonia Greece Bulgaria Montenegro Denmark Croatia Malta

13.. also differences regarding the network component being funded Iceland Austria Portugal Spain France Romania Moldova Poland Belarus Lithuania Estonia Latvia United Kingdom Ireland Norway Sweden Finland Monaco Switzerland Italy Germany Belgium Netherlands Luxembourg Liechtenstein San marino Vatican City Andorra Czech Rep. Slovak Rep. Hungary Serbia Slovenia Bosnia- Herzegovina Albania Macedonia Greece Bulgaria Montenegro Denmark Croatia Malta Middle mile The EstWIN model is to construct a new middle-mile fibre-optic transport network to extend the network from the existing operator core networks, to new point-of-presence end locations, no more than 1.5km from 98% of all homes. The last mile is expected to then be constructed by retail service providers, using either fibre, copper or wireless. Last mile The Lazdijai/Alytus project was conceived to connect the remote rural towns in these regions to the ongoing national RAIN fibre network roll- out. As part of RAIN, new backhaul and transport networks were constructed; this project is extending that connection through the mountainous terrain with a WiMAX radio last-mile network. Entire network The MetroWeb project in Milan initially constructed an entirely new fibre-optic network, from core to premises, reusing only what passive infrastructure had been laid previously as part of an aborted Telecom Italia roll-out. Telecom Italia is now working in conjunction with MetroWeb to extend this network.

14 Thank You Unit D.2: Thematic coordination, innovation Regional Policy Directorate General European Commission

15 EU Cohesion Policy Eligible Regions Total Budget: EUR Bn (35,6% of the EU-Budget) Of which 82% for Convergence Regions, 15% for Competitieness

16 Regio Atlas : LinkLink