20101020 Broadband in Europe - Internet Hungary conference

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Transcript of "20101020 Broadband in Europe - Internet Hungary conference"

  1. 1. European Commission, DG Competition, State aid 1 Public funds, broadband networks and digital strategies – An EU perspective Norbert GAAL DG Competition – State Aid Information, Communication and Media European Commission Internet Hungaria 2010 Siófok, 26/27 October 2010.
  2. 2. European Commission, DG Competition, State aid 2 Agenda* Introduction Broadband Strategy Role of State aid Available funding * This presentation reflects the personal opinion of the author and may not be regarded as stating an official position of the European Commission or of its Competition Directorate-General. Responsibility for the information and views expressed lies entirely with the author.
  3. 3. European Commission, DG Competition, State aid 3 The broadband vision ““In a few years' time, broadbandIn a few years' time, broadband access will be so cheap (access will be so cheap (andand ubiquitous)ubiquitous) that we won't even knowthat we won't even know if we're online or not.”if we're online or not.” à la Gerd Leonhard – media futurist
  4. 4. European Commission, DG Competition, State aid Three main messages • The utmost importance of a comprehensive broadband strategy • Clarification of the role of public funds for broadband infrastructure development • Secure EU funding to achieve the objectives of the Digital Agenda 4
  5. 5. European Commission, DG Competition, State aid 5 Agenda Introduction Broadband Strategy Role of State aid Available funding
  6. 6. European Commission, DG Competition, State aid EU strategy for infrastructure development EU2020/ DIGITAL AGENDA EU FUNDS (ERDF, ERDP, EAFRD, TEN, CIP,… ) NGA Recommendation RadioSpectrum PolicyProgramm Broadband Guidelines Broadband Communication Main targets By 2013 • 100% bb coverage By 2020 • 100% coverage of 30 Mbps • 50% coverage of 100 Mbps Main policy documents/ initiatives for broadband infrastructure development Available EU funds • Direct grants • Preferential loans 6
  7. 7. European Commission, DG Competition, State aid Digital Agenda • Develop and make operational national broadband plans by 2012 that meet the coverage and speed and take-up targets defined in Europe 2020, using public financing in line with EU competition and state aid rules; • Take measures, including legal provisions, to facilitate broadband investment, such as making sure that civil engineering works systematically involve potential investors, clearing rights of way, mapping available passive infrastructure suitable for cabling and upgrading in-building wiring; • Use fully the Structural and Rural Development Funds that are already earmarked for investment in ICT infrastructures and services. 7
  8. 8. European Commission, DG Competition, State aid Broadband strategies in the EU Digital Britain (UK) • 2 Mbps for all by 2012 • 90% NGA coverage by 2017 Plan Numerique (FR) • 512 Mbps for all by 2012 • 100% NGA by 2025 Breitbandstrategie der Bundesregierung (DE) • 1 Mbps for all by • 50 Mbps for 75% by 2014 and for 100% by 2018 National BB Strategy (S) • 100 Mbps for 40% by 2015 • 100 Mbps for 90% by 2020 Plan of Action (SF) • 1 Mbps for all by 2010 • 100 Mbps for 100% by 2015 National BB Strategy (EE) • 100 Mbps for all by 2015 8
  9. 9. European Commission, DG Competition, State aid Member States’ strategy • Twin objectives are pursued: 1. To reach 100% basic broadband coverage 2. To support the rapid rollout of NGA networks • Role of state aid – Past: small, localized state aid projects from a few Member States (e.g. UK, Italy) – Now: national state aid schemes are part of comprehensive broadband strategies 9
  10. 10. European Commission, DG Competition, State aid Some announcements of state aid for broadband deployment* UK: €1000 million Legend Existing SA scheme Ongoing discussions No SA needed No SA schemes Non EU countries France: €2000 million Finland: €150 million Estonia: €75 million Germany: €1000 million Lithuania: €100 million Poland: €1000 million Portugal: €100 million No state aid used Italy: €1400 million 10* Indicative amounts, as of September 2010
  11. 11. European Commission, DG Competition, State aid 11 Agenda Introduction Broadband Strategy Role of State aid Available funding
  12. 12. European Commission, DG Competition, State aid Why State aid is needed? • The use of public funds are justified by the socio-economic benefits that widespread broadband coverage can bring to the European citizens and companies • Public funding will have crucial role in infrastructure development – to achieve universal broadband coverage – to accelerate NGA deployment 12
  13. 13. European Commission, DG Competition, State aid Role of state aid is increasing • High investment needs of NGA networks • “White NGA areas” will be most probably larger than basic broadband “white areas” • Strong political will to accelerate NGA investments • Increased EU funding is available to achieve fast and wide roll-out 13
  14. 14. European Commission, DG Competition, State aid EU State aid rules • Not only the presence of infrastructure matters, but also that effective competition takes place • Aid only to areas where commercial operators unlikely to invest in the near future • Public funding has to be used carefully in the liberalised telecoms markets to avoid unduly distorting competition • The ultimate objective is to maximize consumer welfare • The rules are stipulated in the Broadband Guidelines 14
  15. 15. European Commission, DG Competition, State aid Smart use of public funds In France, smart use of public funds resulted in • Increased competition • Wider broadband coverage • More investments • Better end-user prices Report of ARCEP, France, 2009 L’intervention des collectivités territoriales dans le secteur des communications électroniques 15
  16. 16. European Commission, DG Competition, State aid Policy decisions to make - examples Ongoing debates: • Sweden/ Germany: only passive infrastructure elements for NGA support (ducts) • France: separation of wholesale and retail operation of aided projects + possible ban of VDSL deployment • Finland/Estonia/Lithuania: backhaul networks with access points less then 2 kms from customer premises – construction of last mile infrastructures left for market operators 16
  17. 17. European Commission, DG Competition, State aid 17 Agenda Introduction Broadband Strategy Role of State aid Available funding
  18. 18. European Commission, DG Competition, State aid Available EU funding • Due to the over-stretched national budgets, EU funds will have an increasing role • Structural and regional funds (e.g. ERDF, ERDP, EAFRD, TEN, CIP) • Credit enhancement (backed by the EIB and EU funds) 18
  19. 19. European Commission, DG Competition, State aid Key success factors • State aid should be part of an overall broadband strategy • Active involvement of all stakeholders (private operators, NRA, public authorities, …) in designing SA measures 1.Backhaul networks for basic broadband support 2.Passive infrastructure elements (ducts, manholes) for NGA support • Strong “open access” provisions • High level of transparency of SA measures 19
  20. 20. European Commission, DG Competition, State aid 20 THANK YOU FOR YOUR ATTENTION!

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