Digital Agenda for Europe
A Europe 2020 Initiative

Action 45: Foster the deployment of NGA networks

Article
Issue a Recommendation in 2010 to encourage investment in competitive Next Generation Access networks through clear and effective regulatory measures.
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What is the problem? Outdated networks are slowing Europe down

Today, internet access in the EU is mainly based on first generation broadband. Most people connect to the cyberspace over telephone copper and TV cable networks, both of which offer only limited speeds.

Europe is lagging behind other parts of the world (USA, Japan, Korea) where heavy investments are made to foster the deployment of Next Generation networks that enable to access high-speed internet.

Why is EU action required? To offer the best to its citizens and businesses

Europeans should have the chance to use services on networks that are equal to or better than those available in other countries. Measures to achieve this include:

Non-discrimination and cost-orientation

  • The need for Commission guidance on the subjects has been highlighted by the significant differences in the application of non-discrimination and costing remedies across Member States. Such differences are likely to lead to the following problems:
  1. (1) a lack of clarity/consistency surrounding the scope/content of the obligations can render regulation at a national level ineffective;
  2. (2) a too lenient approach towards implementing obligations is not conducive to addressing the competitive concerns identified in the relevant markets; and
  3. (3) significant differences in regulatory approaches across the EU have a negative impact on the internal market as such differences jeopardise investments and hamper both market integration and the development of pan-European operators.

Cost cutting

  • Several measures to facilitate broadband roll-out are being adopted in Member States, yet they remain rather scarce and scattered (with different scope and obligations, deployed on a regional or even local basis).
  • In the absence of a coordinated approach to reducing costs and streamlining procedures, the strategic objective of achieving an inexpensive, world-class infrastructure for high-speed internet can hardly be achieved.
  • A patchwork approach vis-à-vis the different operators involved in civil engineering works (telecom and non-telecom players) might have an impact on their competitiveness and on their capacity and willingness to invest, especially cross border.
  • A coordinated approach at EU level by contrast would also ensure equal treatment of all operators seeking access to existing or future infrastructure that might be used for electronic communications networks.
  • Without harmonisation measures at EU level the increasing risk of national patchwork approaches could jeopardize the objective of the internal market for future electronic communications networks and services, as well as the policy goal to bring "every European digital".

What are the Commission's plans?

The Digital Agenda review proposes a package of regulatory measures on non-discrimination and wholesale pricing to promote investments in high-speed networks and strengthen competition across all networks.

On non-discrimination and cost-orientation:

  • In July 2012 Vice-President Kroes announced a new policy package to create the legal predictability that investors are asking for against the current overall economic situation in Europe and the substantial roll-out costs of high speed internet.
  • Adopt a Draft Recommendation on consistent non-discrimination obligations and costing methodologies to promote competition and enhance the broadband investment environment in early 2013.

On cost cutting

  • A public consultation ran from April till July. By the end of the consultation period, over 100 written contributions had been received from different stakeholders including public authorities and utility companies and covering 26 countries across the EU and EFTA. The results of the consultation show a wide support for this initiative, which is considered timely and relevant. Moreover, the various areas of action identified by the Commission were confirmed as being important. A detailed report of the public consultation will be published soon.
  • Work on an impact assessment is now on-going, with a view to making proposals for an EU legislative initiative in the first quarter of 2013.

Other

  • Review of the recommendation of relevant markets is foreseen for the second half of 2013
  • Adopt revised State aid guidelines for Broadband at the earliest opportunity.

 

 

Progress Report
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