Brussels, 12/07/2012 (Agence Europe) - EU Digital Agenda Commissioner Neelie Kroes announced on 12 July proposals that she will be unveiling to encourage the spread of high-speed internet connections in the European Union, which are needed to support the development of new apps and new digital services. The plan is to get the package of measures proposed for adoption before the end of the year. “Today in Europe we stand on the brink of a new digital transition. New applications and services, from e-Health to the cloud to Connected TV, stand to offer huge benefits for citizens and businesses, and an overall boost to our economy. But many of these new ideas cannot run on copper-based ADSL broadband networks. We cannot let our networks be the bottleneck for this amazing opportunity: we need investment in new high-speed infrastructure. And for that, we need the sector that provides that vital infrastructure - telecoms companies and others - to be strong”, she explained.
In 2012, 35 million Chinese households will have broadband access and in order to remain up-to-speed, Europe is facing key choices to speed up the spread of broadband in the member states. The coexistence of old copper and new generation networks is a particular challenge. While the public sector has to intervene, massive private sector investment will still be needed and investors will require a return on their investment. The measures to be published by Kroes aim to introduce greater legal certainty for investors. The underlying ideas are:
(1) Fair and stricter rules. Incumbent operators should not be able to ward off competition and therefore mechanisms are needed to enable new entrants to compete fairly with incumbents.
(2) Stable copper prices. Operators with copper networks should not cut prices for accessing their network. The commissioner says that low copper prices would not encourage greater investment in very high-speed networks and price regulation is crucial, even where higher prices are justified.
(3) More flexibility on wholesale new generation products. National regulators should no longer regulate prices on the basis of cost across the board, but should instead introduce a more flexible price-adjustment system for new generation products.
In October 2011, the Commission launched two public consultation exercises on access to alternative landline and high-speed operators. Online operators participated and the draft legislation unveiled on Thursday takes account of detailed talks during the consultation exercises, explained Kroes. (IL/transl.fl)