FTTH Conference, Milano Feb. 9-10, 2011                                Europe in 2020                  ...
 course to ensure that the necessary infrastructure is deployed and that newservices are widely adopted both by private an...
 In terms of the development of business applications, most enterprises areexpected to increasingly use the Internet as pa...
 Secondly, NGA requires a more proportionate and targeted regulatoryenvironment which would take more into account differe...
 legitimate online content applications are the main drivers of consumers’ take upof broadband. ETNO members call therefor...
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Pleanry session europe in 2020 day 2 luigi gambardella etno

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FTTH Conference Milan 2011 Day 2

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Pleanry session europe in 2020 day 2 luigi gambardella etno

  1. 1.   FTTH Conference, Milano Feb. 9-10, 2011 Europe in 2020 Intervention by Luigi Gambardella ETNO Executive Board ChairmanDear Commissioner Kroes,Dear Ladies and Gentlemen,First of all, let me thank the FTTH Council for having invited ETNO toparticipate in the closing plenary of this conference. As highlighted by both theEU 2020 and the Digital Agenda for Europe the benefits of high speedbroadband networks for Europe’s economy and society are now fully recognisedand represent key challenges for the ICT Industry. I would also like to praise theFTTH Council for its important contribution to this debate. ETNO members, asmain investors in Europe’s high speed broadband networks, share the convictionthat NGA can put Europe back to the driving seat of competitiveness.The Digital Agenda provides an ambitious vision: the full potential of highspeed Internet must be embraced by all sectors and the society as whole toenable a smart and sustainable growth. If the targets are met, by 2020, Europewill have evolved from the Information Society to the Digital Age.High speed Internet will be the backbone for communications between people,objects and machines. The key condition for this vision to materialise is of 1  
  2. 2.  course to ensure that the necessary infrastructure is deployed and that newservices are widely adopted both by private and public sectors. All Europeancitizens and public administrations will then benefit from it.The targets in terms of high speed broadband deployment are ambitious: allhouseholds should have access to at least 30 Mbps and half of them subscribe to100 Mbps.The size of the investment required in NGA in Europe is estimated by the EUCommission at up to 58 billion euros to achieve the 30Mbps coverage and up to268 billion euros to achieve 50% take-up of households at 100Mbps.The scale of these investment figures requires a balance between privatecontribution and EU and member states’ funds which should be carefullytargeted to complement and not to crowd-out private investment.Such large scale investments will provide EU citizens and business with newopportunities.Let me give an example: broadband-enabled innovation will play an increasedrole in delivering healthcare, contributing to improve patients’ quality of life andto reduce public spending. Commissioner Kroes rightly acknowledged this at theETNO Innovation Day some days ago in Brussels. 2  
  3. 3.  In terms of the development of business applications, most enterprises areexpected to increasingly use the Internet as part of the production process itself,also through functionalities developed by communities of users. Goods willmost likely embed softwares enabling enterprises to monitor their usages and toadapt features.ETNO members are ready to play their role to make sure that this visionbecomes a reality. But we believe that some key conditions need to be put inplace to encourage investments:First of all, we need to question ourselves on whether the current model of theInternet development is sustainable in the long term. We are faced with anexponential increase of data traffic – by more than 35% over fixed networks and100% over mobile ones – driven mainly by bandwidth-hungry applications suchas video.Networks require therefore constant upgrade and investments. At the same time,the competitive pressure made services available for lower and lower prices tothe final customer. In the light of this market context, the industry needs to keepits investment capability.Business models need to evolve, improving incentives for all players in thevalue chain to contribute to meet the huge investment challenge we are facing. 3  
  4. 4.  Secondly, NGA requires a more proportionate and targeted regulatoryenvironment which would take more into account different levels of competitionin markets in order to encourage risky investments. We observe that somenational Regulators reflect the various degrees of competition within theirnational market and favour commercial agreements between operators instead ofenforcing a strict access price regulation of the new fibre networks.Artificially reducing wholesale access prices for copper broadband networkswould undermine the NGA investment case. This was also recently recognisedby Commissioner Kroes.Furthermore, a systematic application of cost-based access obligations to NGAsacts as a deterrent to investments, since a key factor influencing the investmentcase for NGN deployment is consumer demand and his willingness to pay. Notall consumers make the same usage of high speed broadband. Some of themmay wish to pay more in order to get higher speed and more capacity whileothers may have lower needs.Finally, our approach to NGA must remain technology neutral. Investingcompanies will need to choose the network architecture and technology whichadapt better to the market needs of the area where the investment takes place. Let me conclude by saying that the critical factor for the success of the DigitalAgenda is the creation of a digital single market for content and services, as 4  
  5. 5.  legitimate online content applications are the main drivers of consumers’ take upof broadband. ETNO members call therefore on policy makers to facilitate thecreation of a single market for content services, through the simplification ofcopyright and licensing regimes.As main innovators and investors in high-speed networks and services, ETNOmembers are committed to play their role in achieving the objective of providingall European households and businesses with fast and ultra-fast broadbandaccess.Commissioner Kroes,Ladies and Gentlemen, a strong commitment by whole ICT industry and policymakers is in place. Let’s work together towards the goal of having a DigitalEurope.Thank you for your attention. 5  

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