EU Launches Debate On Future Of Broadband For All Europeans

by Ulrika Lomas, for LawAndTax-News.com, Brussels

29 September 2008

The European Union (EU) has launched a debate into how it can achieve its goal of allowing all Europeans equal access to broadband internet.

From 2003-2007 broadband use in the EU tripled to 36% of households. However, 7% of the EU's population are still not connected (30% in rural areas).

There are striking gaps in the EU: 100% of the population is covered in Denmark, Luxembourg and Belgium, but more than 60% in Romania (75% in rural areas) do not have broadband access. Even in strong economies such as Italy and Germany, 18% and 12% respectively of the rural population are not covered.

According to the EU, with broadband increasingly important in daily life, policy tools like radio spectrum management and mobile satellite services should accompany a broad debate about the universal service in telecoms – a safety net guaranteeing a minimum level of services, such as connection to a phone network and basic Internet access, filling basic needs that the market does not serve.

"High-speed Internet is the passport to the Information Society and an essential condition for economic growth. This is why it is this Commission's policy to make broadband Internet for all Europeans happen by 2010," explained EU Telecoms Commissioner Viviane Reding.

"A lot has been achieved over the past four years, and new tools, such as Satellite Broadband, are well on track. It is also good news that the 8 best EU countries far outperform the US in broadband take up. But take up requires access, and is not there in parts of the EU. We need to combine all efforts to make sure that all citizens can get connected soon," Reding added.

The Commission published a report on Thursday showing that competitive markets for broadband Internet are providing EU citizens widespread and affordable access. However, further efforts are needed to ensure 100% broadband coverage throughout the union.

So far, the EU has stimulated broadband with the following 3 tools:

  • Telecoms rules for more competition and investment. Europe had almost 100 million broadband lines in January 2008 and a growth rate of 20%, with 52,000 new lines connected daily in 2007. Last week, the Commission published further regulatory guidance on ensuring competition and investment for optical fibre networks.
  • A new system to stimulate mobile satellite services, which can deliver broadband via satellite across the EU, was set up this summer. The European Parliament and the Council created a one-stop shop for authorising such services: instead of 27 procedures, mobile satellite operators now apply to the Commission.
  • In November 2007, the Commission made proposals for reform of radio spectrum management to free resources for new wireless services, which were mostly endorsed by the European Parliament on September 24. If the Council also accept this new form of spectrum management, the Digital Dividend – extra radio spectrum available after the move from analogue to digital TV – can be used for new wireless broadband services, and not just new TV channels.

Last week's Commission report asks if these measures are enough or whether a new universal service obligation should be considered.

The report also shows strong growth in the number of Europeans using a mobile phone. Since the present Commission took office, the level of mobile subscriptions has grown from 85% to 112%.

"These figures are an important vote of confidence of mobile consumers in the health of Europe's mobile sector", Reding continued.

"They show that at present, there is no need to impose universal service obligations on mobile operators – even though at least some of their lobbyists try to make us believe the contrary these days," she added.

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