EU Broadband Policy at a turning point Dr Nancy Pascall DG CONNECT, European Commission 16 March 2016 Stadsnätsföreningen Årskonferens 2016 Halmstaf
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1 EU Broadband Policy at a turning point Dr Nancy Pascall DG CONNECT, European Commission 16 March 2016 Stadsnätsföreningen Årskonferens 2016 Halmstaf
2 Some interesting predictions "I think there is a world market for maybe 5 computers" Thomas Watson, chairman IBM 1943 "There is no reason anyone would want a computer in their home" Ken Olson, Digital Equipment Corporation, 1977 "The subscription model of buying music is bankrupt!" Steve Jobs, 2003
3 And they mainly talked about equipment! What about connectivity?
4 A few years later (not that many) Internet surrounds us and we use it to our benefit be it for work or pleasure
5 Some Statistics ICT and Internet economy are very important for EU development 43% EU risk capital in ICT companies 17% EU patents in ICT ICT PROFESSIONALS 11% of Internet suscriptions >100 Mb 19% of Internet suscriptions >30 Mb & <100Mb 75% mobile Broadbandpenetration INTERENET ECONOMY estimated EU demand/supply gap by % work outside of ICT sector 2.8% of EU workforce 3-4% yearly employment growth EUR 700 billion = 5% of the GDP EU high tech sector employed 8.5 million people almost 4% of total employment in 2013 Internet of Things will create almost EUR 330 million of new revenues by 2020
6 Connectivity is crucial for the good functioning of the Internet Economy Source: Boston Consulting Group 2015
7 What about Sweden? DESI
8 1. Connectivity 1 Connectivity Sweden Cluster EU rank score score score DESI DESI
9 2. Human Capital 2 Human Capital Sweden Cluster EU rank score score score DESI DESI
10 3. Use of Internet 3 Use of Internet Sweden Cluster EU rank score score score DESI DESI
11 4. Integration of Digital Technology 4 Integration of Digital Technology Sweden Cluster EU rank score score score DESI DESI
12 5. Digital Public Services 5 Digital Public Services Sweden Cluster EU rank score score score DESI DESI
13 Looking at the future Sweden is doing great! She could do better though or to put it in another way, she could go even further as could the rest of the EU
14 Players are expanding their position in the value chain There is need to properly regulate the converging services and companies, when different industries quite often have very different qualities. Consumers have the full right to transparency with respect any important distinctions, so they can make well informed choices. Source: Boston Consulting Group 2015
15 We should aim for the best access for everyone All fibre access offers the best parameters and allows for all the services in satisfactory manner We should fight the digital divide as all of the citizens have the right for the best ride
16 Augmented and virtual reality is the future Augmented reality Virtual reality According to CCS Insight hardware shipments of VR devices alone will increase from 2.2m in 2015 to 20m in The increase will tally up with the increase in smartphones (more than 2.5 billion by 2018)
17 and requires huge bandwidth increase 5x more bandwidth Low latency Virtual Reality requirements Last-mile networks improvement 4G is not sufficient! Investments in very low-latency, highthroughput networks Intelligent traffic management solutions Compression algorithms
18 Nobody wants to see that screen! Download for HD movie: 10 Mbps 20 minutes 20 Mbps 9 minutes 100 Mbps 2 minutes 1 Gbps 12 seconds How can we build the future Digital Single Market if such a message appears on our devices?
19 The speed is a very subjective thing if you compare it with different benchmark
20 Digital Single Market is based on three pillars Digital Single Market Better access for consumers and businesses to digital goods and services across Europe Creating the right conditions for digital networks and services to flourish Maximising the growth potential of the Digital Economy
21 Telecom & Need for Speed Open Consultations High-quality and high-speed internet access vital to achieve a Digital Single Market Review of current EU telecoms rules; Europeans' broadband needs.
22 Views on: How EU rules could incentivise network rollout, on spectrum management; The role of universal service rules; Institutional set up and governance. The respondents felt that: Competition law principles should continue to underpin the EU's regulation in this field; Need for policy adjustment to improve connectivity and advance the internal market.
23 Telecoms Framework Review Sustainable, market-based high-performance BB infrastructures for a vibrant Digital Single Market: Networks & access Services Governance & Tools The Commission will propose a revised EU telecoms framework in the second part of the year.
24 Need for Speed More than 1500 respondents Needs in terms of internet speed and quality are not fulfilled; Use of internet services and applications to increase dramatically by 2025; Policy measures are required to support the development of infrastructure in line with future needs.
25 Structural funds European Regional Development Fund (EFRD) European Agricultural Fund for Rural Development (EAFRD) Funds for TO2 "Enhancing access to, and use and quality of, ICT" 6 bln for broadband Where is the money? Connecting Europe Facility - Telecoms The Connecting Europe Facility (CEF) supports trans- European networks and infrastructures in the sectors of transport, telecommunications and energy 150 m for broadband European Fund for Strategic Investments (EFSI) An initiative launched to help overcome the current investment gap in the EU by mobilising private financing for strategic investments??? for broadband Years
26 ICT Monitoring Tool Everything you wanted to know about investing in Broadband (not only) and you dared ask
27 Broadband Competence Offices Sweden: 2/3 of funding EARDF 157m, and about 1/3, ERDF 70. Reporting good practices in expertise/capacity to plan projects; Coordination and interaction between relevant bodies including relevant Ministries, the NRAs and the regional/local authorities.
28 Thank You! ec.europa.eu/digital-single -market
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