Digital Agenda in Croatia

The Digital Agenda of
Croatia and the
European Union
SKILLS+ Capacity Building Seminar
Zadar, Croatia
17. - 19. October 2016.

18.10.2016.2HAKOM © 2016
1 INTRODUCTION
2 DIGITAL AGENDA FOR EUROPE
3 THE DIGITAL ECONOMY & SOCIETY INDEX – DESI
AGENDA
4 CROATIAN BROADBAND STRATEGY
5 CONCLUSION

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1 INTRODUCTION
AGENDA
5 CONCLUSION

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INTRODUCTION
Why Broadband?
Broadband is a transformative platform that impacts the ICT sector as
well as other sectors of the economy;
Broadband impacts a country’s economic output and GDP*:
1. Enhancing the role of human capital through easier acquisition of
knowledge and technical skills;
2. Improving the efficiency and productivity of enterprises;
3. Increasing community competitiveness by attracting knowledge-
based businesses;
4. Sparking new and innovative technologies, services, applications and
business models.
Ten percent increase in broadband penetration  can increase economic
growth from a low of range of 0.24 percent to a high of 1.50 percent**
* Christine Zhen-Wei Qiang and Carlo M. Rossotto, IC4D: Extending Reach and Increasing Impact
** Estimations from various sources

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1 INTRODUCTION
AGENDA
5 CONCLUSION

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Digital Agenda for Europe – part of Europe 2020 Initiative
DAE main objective  to develop a digital single market in
order to generate smart, sustainable and inclusive growth in
Europe
DAE is made up of seven pillars:
1. Achieving the digital single market;
2. Enhancing interoperability and standards;
3. Strengthening online trust and security;
4. Promoting fast and ultra fast Internet access for all;
5. Investing in research and innovation;
6. Promoting digital literacy, skills and inclusion;
7. ICT-enabled benefits for EU society.
DIGITAL AGENDA FOR EUROPE (1)

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DAE access and connectivity objectives:
 The entire EU to be covered by broadband above 30Mbps
by 2020
 50% of the EU to subscribe to broadband above100 Mbps
by 2020
EC - How to reach DAE broadband targets by 2020:
i. By shaping incentives for long term investment in
broadband infrastructure,
ii. By supporting Member States in addressing the national
underinvestment in broadband.
Next Generation Networks are a condition „sine-qua-non” of
the next wave of innovation and represent the key enabling
infrastructure of the digital single market.
DIGITAL AGENDA FOR EUROPE (2)

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1 INTRODUCTION
AGENDA
5 CONCLUSION

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DESI*: a composite index that summarizes relevant indicators
on Europe’s digital performance and tracks the evolution of EU
member states in digital competitiveness
Four main types of Index analysis:
1. General performance assessment,
2. Zooming-in,
3. Follow-up,
4. Comparative analysis.
DESI addresses the five principal policy areas of concern for a
digital economy and society,
*https://ec.europa.eu/digital-single-market/en/desi
THE DIGITAL ECONOMY &
SOCIETY INDEX – DESI (1)

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DESI is structured around five principal dimensions:
1. Connectivity
 measures the deployment of broadband infrastructure and its quality
2. Human Capital
 measures the skills needed to take advantage of the possibilities offered
by a digital society
3. Use of Internet
 The dimension accounts for the variety of activities performed by
citizens already online
4. Integration of Digital Technology
 measures the digitisation of businesses
5. Digital Public Services
 measures the digitisation of public services, focusing on eGovernment.
THE DIGITAL ECONOMY &
SOCIETY INDEX – DESI (2)

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0
10
20
30
40
50
60
70
80
1 Connectivity 2 Human Capital 3 Use of Internet 4 Integration of Digital Technology 5 Digital Public Services
Digital Economy and Society Index (DESI), 2016, Digital Agenda Scoreboard
DIGITAL ECONOMY AND SOCIETY
INDEX 2016 - EU
1 Connectivity Fixed Broadband, Mobile Broadband, Broadband speed and
Affordability
2 Human Capital Basic Skills and Usage, Advanced skills and Development
3 Use of Internet Content, Communication and Online Transactions
4 Integration of Digital
Technology
Business digitisation and eCommerce
5 Digital Public Services eGovernment

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DESI 2016 - EU
Overall, Europe is progressing:
 EU as a whole attained a
score of 0.52 in 2016, up
from 0.50 last year,
 Improvement in the overall
DESI score was mostly driven
by the Connectivity and
Integration of Digital
Technology dimensions,
 Developments in Digital Public
Services and Human Capital
have all but stagnated this
year.

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DESI 2016 – DEVELOPMENT STAGE
Countries were grouped in clusters
according to their score in DESI 2016
and to the growth they have
registered between 2015 and 2016.
 Running ahead- score above the
EU average and whose score grew
faster than that of the EU over the
last year.
 Lagging ahead - score above the
EU average but whose score grew
slower than that of the EU over
the last year.
 Catching up - score below the EU
average but whose score grew
faster than that of the EU over the
last year.
 Falling behind - score below the
EU average and whose
development over the last year
was slower than that of the EU as
a whole.

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Croatia ranks 24 among EU countries
Source: Digital Agenda Scoreboard
DESI 2016 - HR
 Croatia is a part of the catching up
cluster of countries because, although it
still performs worse than the EU as a
whole,
 It has developed fast over the last year
and got closer to the EU average

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 In Croatia, fixed broadband is available to 97% of households (97% in the EU)
 NGA connections are available to 52% of Croatian households (71% of
European households)
Source: Digital Scoreboard 2016 - Croatia
CROATIA: FIXED BROADBAND
COVERAGE

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 70% of Croatian households subscribe to fixed broadband and 2.8% of those
subscriptions are to a fast* connection (2% of Croatian households).
Source: Digital Scoreboard 2016 – Croatia
* A broadband connection is considered to be a fast connection when it allows for donwnload speeds above 30 Mbps
TAKE-UP

17HAKOM © 2016 18.10.2016.
Source: DESI Scoreboard 2016
In Croatia the cheapest fixed (internet only) broadband connection allowing for speeds of 12-30Mbps
costs 2.5% of the average individual income (overall in the EU it costs 1.3%).
PRICE

18HAKOM © 2016 18.10.2016.
 In Croatia there are 72,3 subscriptions to mobile broadband per each 100
people (75 in the EU), July 2015
Source: Electronic communications market indicators collected by Commission services, through National Regulatory Authorities, for the
Communications Committee (COCOM)
34,5%
44,3%
46,0%
49,7%
58,6%
61,1%
63,4%
63,4%
64,3%
65,2%
66,2%
66,4%
66,9%
69,8%
70,6%
72,3%
72,8%
73,3%
75,3%
75,3%
79,5%
80,3%
86,5%
86,6%
94,1%
104,5%
112,1%
114,6%
138,6%
0%
20%
40%
60%
80%
100%
120%
140%
HU EL PT SI RO BE MT SK LT LV CY DE AT BG CZ HR LU FR EU IT NL ES UK IE PL EE DK SE FI
Subscribersper100people
CROATIA: MOBILE BROADBAND
TAKE-UP

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1 INTRODUCTION
AGENDA
5 CONCLUSION

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Strategy for Broadband Development in Republic of Croatia for
2016-2020 – defines national measures for stimulating BB
deployment
According to the Strategy for Broadband Development there are
two main objectives (inline with DAE 2020):
1. Coverage by NGA networks, enabling Internet access at
speeds over 30 Mbps for all inhabitants of Republic of Croatia
2. At least 50% of households in Republic of Croatia to use
Internet access services at the speed of 100 Mbps or greater
Strategy incentives:
 Comprehensive information campaign on high-speed
broadband access
 Creating a stimulating environment for investments
 Promoting the roll-out of the high-speed broadband networks
in areas lacking of sufficient commercial interest
CROATIAN BROADBAND STRATEGY

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A COMPREHENSIVE INFORMATION CAMPAIGN
ON HIGH-SPEED BROADBAND ACCESS
Informing the public on the state of broadband access availability:
 Ensure up-to-date information on broadband access availability.
Promotion of all social and economic benefits in connection with
high-speed broadband access availability:
 Public authorities on the regional and local levels  support in
the implementation of measures and activities of the Strategy.
Internet user education and rights protection:
End users education on protection of their rights and the safety
of Internet use in cooperation with the competent state
administration bodies;
Increases the end users' overall level of confidence in the safety
of Internet use.

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CREATING A STIMULATING ENVIRONMENT
FOR INVESTMENTS
Reducing the costs of high-speed broadband network roll-out :
 Reduce administrative and operational obstacles;
 Access to data on the existing electronic communications
infrastructure and other suitable infrastructures;
 Establish mechanisms for the coordination of construction works
with other sectors (transport, utility infrastructure).
Simplifying and speeding up administrative procedures for the roll-
out of high-speed BB networks at all levels of public authority:
 Procurement of all necessary permits and consents for the
construction of high-speed BB networks.
Policy of allocating radio-frequency spectrum for the provision of
high-speed broadband access:
 Preparation of a strategy for the transition to DVB-T2 and the
allocation of the second digital dividend

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BB ROLL-OUT IN AREAS LACKING
COMMERCIAL INTEREST
Financing of the high-speed broadband network:
 Financing through ESI funds;
 Additional funds for national public co-financing of grants (e.g.
radio frequency spectrum auctions, credit line of EIB).
Ensuring administrative and technical capacities of state
administration bodies which will enable the implementation of high-
speed broadband network roll-out co-financing projects:
 Ensure sufficient administrative and technical capacities of state
administration bodies;
 Support and assistance to the regional and local administration
bodies in the preparation of these projects.

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DIGITAL DIVIDE IN CROATIA
The digital divide represents a
complex and multidimensional
social phenomenon with a
strong impact on society as a
whole,
Croatia is not the only country
with this problem,
EU Member States initiated
and implemented specific
plans with a number of
measures for solving this
problem,
It is necessary to take steps to
prevent particular areas from
lagging behind.
Map of broadband access use (above 2 Mbit/s)

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INDICATIVE FINANCING PLAN FOR BB
INFRASTRUCTURE DEPLOYMENT
Source: MMATI

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1 INTRODUCTION
AGENDA
5 CONCLUSION

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Main Challenges
EC estimates that over EUR 20 billion of public funds is needed
to stimulate private sector investment towards 30 mbps target
Stakeholders, financial institutions and investors perceive the
risk of broadband investment to be higher than that of other
infrastructures;
The Member States do not currently devote sufficient national
financing to close the gap;
It is necessary to increase awareness and create an additional
set of incentives for new business models to emerge 
through guidance, best practice, demand enhancement and
community involvement.
CONCLUSION

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NEW STRATEGIC
OBJECTIVES FOR 2025
Gigabit connectivity for all main socio-economic drivers
 For e.g. schools, transport hubs and main providers of public
services as well as at digitally intensive enterprises.
 Will focus investments on natural demand aggregators, promote
skills, create demand and deepen the reach of fibre backhaul
5G connectivity for all urban areas and all major terrestrial
transport paths
 Intermediate objective for 2020: 5G connectivity to be available as
a fully-fledged commercial service in at least one major city in each
Member State, building on commercial introduction in 2018.
 Bring together operators and user (vertical) industries to focus
jointly on specific projects (e.g. connected cars, smart cities)
At least 100 Mbps access for all European households
 Access to Internet connectivity offering a downlink of at least 100
Mbps, upgradable to Gigabit speed
 Improve connectivity in rural areas to avoid a digital divide and
enable emergence of new services linked to e.g. tourism, online
administration, agriculture

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The Digital Agenda identifies where Europe needs to focus its efforts to put this
virtuous cycle in motion.
Achieving the digital single market

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13,86%
15,37%
15,72%
16,44%
16,48%
16,63%
16,64%
17,01%
17,49%
18,25%
19,27%
20,04%
21,52%
22,55%
23,05%
23,58%
26,34%
26,59%
27,35%
28,87%
29,81%
30,46%
0%
5%
10%
15%
20%
25%
30%
35%
Virovitičko-podravska
Požeško-slavonska
Koprivničko-križevačka
Bjelovarsko-bilogorska
Brodsko-posavska
Međimurska
Krapinsko-zagorska
Vukovarsko-srijemska
Sisačko-moslavačka
Karlovačka
Varaždinska
Ličko-senjska
Osječko-baranjska
Zagrebačkažupanija
Šibensko-kninska
RH
Zadarska
Dubrovačko-neretvanska
Splitsko-dalmatinska
Istarska
Primorsko-goranska
GradZagreb
Croatia: Digital Divide
VERY LOW DENSITY IN RURAL AREAS AND ON THE ISLANDS.
Source: HAKOM, July 2016

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Connectivity: fixed broadband price
Source: DESIS coreboard 2016
In Croatia the cheapest fixed (internet only) broadband connection allowing for speeds of 12-30Mbps
costs 2.5% of the average individual income (overall in the EU it costs 1.3%).

34HAKOM © 2016 18.10.2016.
Croatia: Share of IPTV technology
10,35%
26,08%
11,61%
47,74%
4,20%
Cable reception IPTV Satellite reception Digital terrestrial reception Digital terrestrial reception (pay per view)
Note: The number of Digital terrestrial reception = (Number of HH in Republic of Croatia - number of HH without TV) – ( number of Cable reception + number
of IPTV + number of Satellite reception + number of Digital terrestrial reception (pay per view));
Source: HAKOM, July 2016

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Croatia: Internet Users
Source: Eurostat - Community survey on ICT usage in Households and by Individuals
26% of Croatians have never used the internet (16% in the EU)

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Croatia: Digital Skills
Source: Eurostat - Community survey on ICT usage in Households and by Individuals
In Croatia 21% of citizens have basic digital skills (27% in the EU)
and 30% have above basic digital skills (28% in the EU)

37HAKOM © 2016 18.10.2016.
Source: Eurostat - Community survey on ICT usage in Households and by Individuals; IHS Technology databases - TV Media
Intelligence Service.
Croatians, much like European citizens in general, perform a diverse set of
activities online. They use the Internet to consume content and media, to
communicate, and to perform transactions.
Croatia: Use of Internet

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Source: Eurostat - Community survey on ICT usage and eCommerce in Enterprises
Businesses in Croatia are adopting different digital technologies to enhance
productivity,such as sharing internal information electronically or using RFID,
eInvoicing, Social Media and Cloud.
Croatia: Integration of Digital Technology - Business
digitization

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ABOUT HAKOM
HAKOM - Croatian Regulatory Authority for Network Industries is a
legal entity with public authority within the scope and competence
prescribed by the Electronic Communications Act and a special law
regulating the field of postal services and the field of railway services
HAKOM – shall be obliged to take all the appropriate measures which
are aimed at achieving the regulatory principles and objectives in
particular in the following way;
Encouraging efficient investment into infrastructure and promoting
innovation, in a manner that ensures that any access obligation takes
appropriate account of the risk of investment, and allow different
cooperation agreements between investors in infrastructure and access to
seeker in order to distribute investment risk, by ensuring the protection of
competition and respecting the principle of non-discrimination
The protection of competition to the benefit of end-users
(Electronic Communication Act, Article 5.)

Digital Agenda in Croatia

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