Improving access to digital goods and services
One of the three DSM strategy policy areas or 'pillars’ is of particular interest to the network and telecoms sector. The EU plans to present an ambitious overhaul of telecoms rules, including the creation of incentives for investment in high-speed broadband.
“All activities in the digital economy depend on electronic communication (broadband) networks,” states to the European Commission Staff Working Document ‘A Digital Single Market Strategy for Europe - Analysis and Evidence’. “The DSM can only be realised if all European citizens, businesses and public administrations are connected to reliable, affordable high-speed networks. Member States have stepped up their efforts to make broadband a political priority through national plans, but the level of ambition varies greatly.”
Broadband and GDP
NExsT discussed the matter further with a team of European Commission experts: “European consumers and businesses are hungry for more digital products and services. Their expectations and appetite are constantly increasing. Our innovators are becoming more creative. Fast and ubiquitous broadband networks are essential to meet this demand and to stimulate our digital economic recovery. There's a clear link: studies show that a 10% increase in broadband penetration can increase GDP by 1-1.5%.”
“It's not just about today's demand. Tomorrow's digital services increasingly rely on superfast high-speed broadband connections. Applications for e-Government, e-Commerce or e-Health require high-performance internet connections. The Internet of Things, the data economy, the abundance of content and increasingly cheaper and smarter mobile devices will only accelerate this trend. Therefore, extensive access to high-speed broadband networks is of growing importance for private households as well as the business sector. This means that availability of bandwidth as well as the ease, and affordability, of upgrading existing broadband networks are at the very foundation of a vibrant digital economy and society.”
Helping achieve DSM goals
“The Digital Single Market strategy is about removing barriers in the online world, turning 28 national digital markets into one single market and helping citizens, businesses and governments get the most out of digital. None of this is going to happen without high-speed broadband. This is why one of the three Digital Single Market pillars is to create the right conditions for digital networks and services to flourish. We want to build the market and regulatory conditions for broadband so that market players have the incentive to invest in high-speed broadband networks and make sure that end-users benefit from competitive, affordable and high-quality connectivity.”
“The roll-out of high-speed fixed and wireless broadband networks across the EU requires substantial investments. As part of the Digital Single Market Strategy, we aim to create the right regulatory and financial incentives to trigger such investments. However, we can also do a lot to reduce the administrative, financial and practical problems related to installing broadband in the first place. For example, civil engineering works, such as the digging up of roads to lay down high-speed broadband, account for up to 80% of the cost of deploying high-speed networks. Limiting these works would make broadband rollout cheaper. The Directive on measures to reduce the cost of deploying high-speed electronic communications networks (LINK TO 2014/61/EU) aims at facilitating and providing incentives for the roll-out of high-speed electronic communications networks by reducing the cost. This includes measures such as the sharing and re-use of existing physical infrastructure, which are expected to create conditions for a more cost efficient network deployment.”
Approaches to investment and legislation
“The Commission is putting forward various plans and instruments to stimulate investment in the telecoms sector and develop the roll out of broadband. Firstly, with the Digital Single Market, we will reinforce the right regulatory environment for investment by telecoms companies. Secondly, we have various funding instruments for broadband.”
“While most of the broadband investment must come from private sector, it is clear that in certain areas some form of public financing is necessary, notably in rural areas. For this purpose we already have European Structural and Investment Funds (ESIF). Under the European Regional Development Fund and Cohesion Fund (part of ESIF), over €20 billion are available for investments in ICT during the 2014-2020 funding period .Our new ambitious Investment Plan for Europe will also target digital infrastructures, along with other strategic infrastructures such as energy and transport networks. In areas where the market does not deliver the necessary infrastructure investment, it is allowed to use state aid subject to assessment.”
“On the subject of telecoms rules, we want more effective spectrum coordination, and common EU-wide criteria for spectrum assignment at national level. Also, we will create incentives for investment in high-speed broadband, ensuring a level playing field for all market players, traditional and new; and create an effective institutional framework.”
EC experts on Smart Cities and Smart Grids
“In Smart Cities, digital technologies translate into better public services for citizens, better use of resources and less impact on the environment. The smart city concept goes beyond the use of ICT for better resource use and less emissions. It means smarter urban transport networks, upgraded water supply and waste disposal facilities, and more efficient ways to light and heat buildings. And it also encompasses a more interactive and responsive city administration, safer public spaces and meeting the needs of an ageing population.” “For all these applications to work, however, city broadband networks have to be in a position to accommodate the needs linked to these applications. That is why we believe investment in broadband infrastructure is important: because it is essential for us to fully benefit from the opportunities the digital world offers.”
The three Digital Single Market strategy policy areas or 'pillars'
Better online access to digital goods and services
Helping to make the EU's digital world a seamless and level marketplace to buy and sell.An environment where digital networks and services can prosper
Designing rules, which match the pace of technology and support infrastructure development.Digital as a driver for growth
Ensuring that Europe's economy, industry and employment take full advantage of what digitalisation offers.
The Digital Agenda for Europe (DAE) The DAE states that by 2020, broadband at speeds of 30Mb/s should be universally available and more than half of all European households should have at least 100Mb/s connections. When these targets were set in 2010, they were regarded as ambitious. Now mid-way to the targets, they are already insufficient and incapable of supporting an increasing number of usage cases, for example industry 4.0 applications, connected cars, telemedicine, cultural and creative industries. To find out more:http://europa.eu/rapid/press-release_IP-15-4919_en.htm
http://europa.eu/rapid/press-release_MEMO-15-4920_en.htm
http://ec.europa.eu/priorities/digital-single-market/docs/dsm-communication_en.pdf
European Commission Vice-President for the DSM Andrus Ansip (L) and Commissioner for Digital Economy and Society Gunther Oettinger hold a press conference on the Digital Single Market at the European Commission in Brussels. Source: AFP
