Brussels, 21/03/2006 (Agence Europe) - Four Commissioners addressing a common priority, “Broadband for all”. This was the goal outlined by Viviane Reding, Neelie Kroes, Danuta Hübner and Mariann Fischer Boel on Tuesday, where they were seeking to mobilise instruments in favour of broadband, highs-speed internet access for more Europeans. “Broadband internet connections are a prerequisite for e-business, growth and jobs throughout the economy”, declared European Commissioner for the information society and media, Viviane Reding, to the press on Tuesday, which would help the Commission's strategy adopted on Monday. Ms Reding sees the attendance of the Commissioners for competition, regional policy and agriculture and rural development as a sign of a common determination on this issue and also an indication that, “the Barroso Commission works as a team, closely collaborating according to the portfolios for promoting the Lisbon objectives”.
Although the Commission is committed to mobilising its instruments for developing broadband internet connections for all, the message is firstly addressed to Member States. “If the EU and its 25 Member States make a clever use of all policy instruments, broadband for all Europeans is certainly not out of reach by 2010. But the time to act is now”, insisted Viviane Reding. Two main areas of action are proposed in the communication: strengthen national broadband strategies, with clear objectives based on regional needs and by combining EU funding with that of Member States in less developed and rural areas; speed up exchange of best practices, notably by setting up a website and by organising a big conference at the beginning of 2007.
Studies in the US demonstrate that regions in the US that have this technology available have employment rates that are generally 1% above regions without this facility. A German report presented to the Ce BIT in Hanover last week said that broadband access for all would generate an additional EUR 46 billion for the economy of the country by 2010 and create 265,000 new jobs, noted Commissioner Reding. Across Europe, performances are getting better but disparities remain. In terms of access for rural zones or less developed regions in the EU15, only 62% of companies and homes had broadband as opposed to 90% in urban zones. Penetration levels (broadband access for the public) in the EU stand at 11.5% and is still behind the USA (14.5%) and South Korea (25.5%). Above all, the difference between Member States remains worrying,. Penetration levels stand at 20% in the Netherlands, Finland, Denmark, Belgium and Sweden but are less than 10% in Greece, Ireland, Italy and Portugal or in the 10 most recent Member States (with the exception of Estonia).
Implementing ways of bridging the broadband technologies gap can be done by Europeans but it is also up to Member States to make a choice on concrete actions to take, stressed Commissioner Reding. European regulation on communication opens up regional and local markets to broadband service providers but weak demand and geographical differences in certain zones, can dissuade providers as the return on investment is less. The four Commissioner said that Structural Funds and European Development Funds (70 million Euros between 2007-13) could help bridge this investment gap, as well as state aid but only in cases of market failure. Neelie Kroes pointed out that open and efficient markets were the best way of providing broadband access to all Europeans. She also pointed out that the Commission had authorised several instances of public funding for projects of this kind in the United Kingdom, Spain, France, Italy, Ireland and Austria. She explained that in the absence of profitability for investors, “targeted state aid may therefore be appropriate”.