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Introduction to

Introduction to. World Bank 22 th June , 2009. The Avanza Plan was approved by a Cabinet meeting on 4 November 2005. The Avanza Plan 2 was presented at the Cabinet meeting of 30 January 2009.

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Introduction to

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  1. Introduction to World Bank 22th June, 2009

  2. The Avanza Plan was approved by a Cabinet meeting on 4 November 2005. The Avanza Plan 2 was presented at the Cabinet meeting of 30 January 2009. Headed by the Ministry of Industry, Tourism and Trade (Ministerio de Industria, Turismo y Comercio, MITyC) it was drafted with the agreement of all of the central government Ministries and the social agents involved: The Avanza Plan: is a historic milestone in the development of the Information Society Work groups CATSI / PC PAPER Autonomous Regions Central Government / Interministerial Committee ICT sector SENATE Associations FEMP EELL Others

  3. Avanza includes a series of legislative measures and initiatives for direct action with a specific budget. From the start, the Plan has applied a “joint effort” policy: agreements and joint financing with other social agents, both public and private. To date the Avanza Plan has allocated the following funding: The 2005-2008 Avanza Plan budget is over €5.076 billion, of which more than 99% has been allocated. Agreements with all the Autonomous Regions: €1.297 billion (of which the Autonomous Regions accounted for €118 million). Additional funding was allocated in 2006-2007: more than €3.8 billion. Avanza: a true commitment by the entire Society Annual Budget (thousands of euro) 2,000,000 1,794,043 1,800,000 1,539,399 1,516,400 1,600,000 1,197,733 1,400,000 x 3 1,200,000 1,000,000 800,000 535,756 542,914 600,000 400,000 200,000 0 2009 2004 2005 2006 2007 2008

  4. The four lines around which the Avanza Plan is structured Digital Citizenship Accumulated budget 05-08: €856 million • More households equipped and citizens using ICT as part of everyday life. • Social inclusion and narowing of the digital divide. Digital Economy Accumulated budget 05-08: €2,579 billion • Greater adoption of ICT among SMEsand enterprises in general (e-commerce, electronic invoicing). • Loans to families, young people and students • Telecentres • Encouraging women to use the Internet • Avanza Space • Inclusion of the elderly and people with disabilities • Avanza SME, networked industrial parks, NEW programme • Training in ICT • Technology loans • Profit R&D&i and driving force projects • .es domains Quality of life Competitiveness Productivity Social welfare Digital Context Accumulated budget 05-08: €1,344 billion • Extending broadband and mobility. • Increasing confidence in the security of ICT. • Promoting digital identity. • Development of digital content. Digital Education and Public Services Accumulated budget 05-08: €297 million • Transition from traditional education to one that is in line with the digital age. • Guarantee the right of citizens and enterprises to conduct business electronically with thepublic administrations. • Broadband and Mobile TelephonyExtension Plans • National Plan for Transition to DTT (Digital Terrestrial Television) • Security (INTECO) • Digital Content Promotion Plan • Open source software (CENATIC) • Networked Education • Healthcare Online Programme • Networked Civil Registers • Plan to Promote e-Administration • Electronic ID (Spanish Nat. Id. Card)

  5. Main achievements of the Avanza Plan Digital Economy • Avanza has funded more than 2,760 R&D&i projects in enterprises, with an investment of over €1 billion. • 102,000 SMEshave received 0% interest Avanza loans (€1.3 Billion). • The total funding (including loans and grants) has reached €2.3 billion. • Over 1,010,000 new .es domains. • Over 730,000 workers have received training in ICT. Digital Citizenship • 24 million citizens are connected to the Internet, 97% with broadband (in 2003 there were 11.7 million, 50% with broadband). • 179,000 familieshave received 0% interest Avanza loans (€217 million). • 9 million Spanish citizens have an electronic ID. • 12 million peoplein rural areashave received training in and access to the Internet, thanks to nearly 3,000 telecentres and 2,500 connected libraries.

  6. Main achievements of the Avanza Plan Digital Context • Broadband Extension Plan broadband coverage: 99% population (19 points more than in 2004). Public/private investment: €568 million. • DTT coverage: 92.5%of thepopulation, which is above the EU average. 17 million receiverssold. • Mobile telephony coverage: 99% (one of the highest in the EU). • Digital Content Promotion Plan: €390 million in grants in 2007-2008. Great success of FICOD I (Nov’07) and FICOD II (7,200 enterprises and professionals registered at Nov’08!). Networked Public Services • Availability of networked public services: 70%, 8 points above the EU average. • Avanza Local: 435 local entities with new ICT equipment and services. An investment of €314 million. • Up to December 2008 over 26.5 million pages have been transferred to digital format in 227 civil registers and 1,900 computers have been installed in 1,331 magistrates' courts.

  7. Plan Avanza2: 2009-2012 Development of the ICT sector (SMEs) Budget 2009: €663 million • To support companies developing new products and services with a high ICT content and promote the participation of the Spanish industry in creating the Internet of the Future, with special focus on digital content. • Announcement of funding for the Internet of the Future programme • Announcement of funding for the Digital Content programme Citizen/SME Training Budget 2009: €548 million Digital Public Services Budget 2009: €186 million • To encourage access to and use of new technologies by both citizens and SMEs. • To foment the development and implementation of the Information Society, improving electronic public services for citizens and enterprises through the use of ICTs. Plan Avanza2: (2009-2012) • Citizen training • SME training • Healthcare • Local administration • Civil registers Confidence, security and accessibility Infrastructure Budget 2009: €89 million Budget 2009: €11 million • Successful transition to DTT. • Greater coverage and speed of broadband in rural areas. • Providing the scientific community with improved networks and services. • Legislative measures in the area of common infrastructures in public buildings and telecommunications conduits in public domain spaces • Generation of greater confidence in ICTs among both citizens and enterprises, through public policy on data security. • eConfianza Plan • ICT accessibility • Users' Charter of Rights • Transition to DTT • Broadband Extension Plan - Phase 3 • Rediris

  8. One of the most mountainous countries in Europe: The average altitude is 660 meters. Broadband development in SpainDifficulties to guarantee complete availability • Mountainous territory (50%) • Widely dispersed population Low population density in rural areas Num. of municipalities • High rural population percentage (>23%) %/ total Rural municipalities <101 inhabitants 996 12% Rural municipalities (< 2,000) 5.820 72% 1.570 19% % Rural Population Population Density Intermediate (2,000 to 10,000) Urban 8 (> 10,000) 721 9% Total 8.111 100% 86 400 483 20 245 Spain 23,3% Source: INE 2007 Netherlands 19,8% Republic of Korea 19,2% Sweden 15,7% • 84% of municipalities have < 5,000 inhabitants. United Kingdom 10,3% Source: United Nations 2005

  9. Broadband development in SpainActions Cost of deploying telecommunications infrastructures to cover most of the population is one of the highest in Europe  Avanza support plans. • National Program for Broadband roll-out in rural and remote areas: PEBA (2.005 - 2.008) • AVANZA INFRASTRUCTURES SUBPROGRAM(2008- 2012) The final goal is to reach a complete availability of broadband access in rural and remote areas across the national territory where no service was provided, with technical and economical conditions similar to those existing in urban zones

  10. Broadband development in Spain PEBA (2005-2008): kick-off and targets • In Spain: 8,110 municipalities: 5,820 < 2,000 inhab.; 996 < 100 inhab.; also, difficult orography. • PEBA: Broadband to populationcentres (>5 houses)without or with insufficient coverage. • 2004: • Broadband coverage of the population in Spain 80% • broadband availability inferior in rural areas compared to urban zones.

  11. Broadband development in SpainPEBA kick-off: tools and requirements • Ministerial Order ITC/701/2005 • Two calls for propolsals for grants: • First call (2.005): 13 projects, 2 operators • Second call (2.007): 16 projects, 2 operators • Service requirements: • Minimum bandwith: 256Kbps/128Kbps. • Maximum prices: • Registry fee: 39 € • Monthly fee: 39 € during first 36 months of contract • Low installation costs • Operative requirements: • Minimizing the public aids distortion of the competition • Opening the financed networks • Promoting technological neutrality • Co-financing with ERDF funds • Types of economic aids: • Grants: non-recoverable funds • Reimbursable loans: 0% interest, maximum 10 years of amortization; grace period: 3 years

  12. Broadband development in Spain PEBA: Techonologies 86,3% ADSL 8,4% SATELLITE 5,1% WIMAX 0,2% HFC • Telefonica: • Telefonica has invested 75 million € to provide broadband to 58.409 population centres with three technologies: ADSL, WIMAX and Satellite • Telecable: • Telecable has invested 3,9 million € to provide broadband to 33 population centres with two technologies: HFC and Satellite

  13. Broadband development in Spain PEBA: Deployment evolution 2004 2005 2006 2007 2008 PEBA First call PEBA Second call PEBA ends Final deployment Startup deployment 2004: Broadband coverage of the population in Spain 80% October 2008 Broadband coverage of the population in Spain 99% ‘Rural Broadband’ became ‘commercial Broadband’

  14. Broadband development in Spain Avanza Infrastructures (2008-20012): kick-off and targets • Objectives: • To continue investments initiated in PEBA to provide broadband access to very small population centres • To improve bandwith and capacity provided by telcos at rural areas • Action lines to improve broadband access: • F1: Development of broadband and other telecommunication services at rural and isolated areas • F2: High Capacity rural networks: improvement of transport networks to connect municipalities to main data transmission networks in order to provide advanced telecommunication services

  15. “The Efficient use of information and communication technologies (ICT), driven by better high-speed internet (broadband) access, is…key to raising productivity and stimulating innovation in Europe, including in rural areas” (Lisbon Programme, 2008-2010) The European Economic Recovery Plan highlights the importance of Broadband communications for modern economies and aims to ensure that broadband is available to all Europeans 2010 In this Context, the Commission has proposed an additional funding of € 1.0 billion to bridge the broadband gaps in rural areas. BB is expected to create 1 Million jobs and boost the EU’s economy by €850 billion between 2006 and 2015 “BB infrastructure can be a good target for economic stimulus spending because projects can be initiated quickly, are labour-intensive, can minimise economic leakages, and may promise stronger marginal impacts on supply and productivity than investing in established networks such as electricity, gas, water and transportation” (OECD) BROADBAND AND ECONOMIC RECOVERY

  16. BROADBAND IN THE EU EU Average 23 %

  17. The gap between the best and the worst performing countries in Europe remains significant: 26.3 percentage points between Slovakia and Denmark 93% of EU-25 population accesses broadband in the EU However, 30% in rural zones of EU-27 has no access to broadband BROADBAND

  18. RURAL GAP IN EU-27 ES

  19. THE NEW EU BROADBAND STRATEGY Priorities focused on Effective usage and take-up rather than coverage Productivity gains Guidelines from DG Competition for the application of State Aid rules on Broadband investments and deployment Priority given to Next Generation Access Networks (NGA)

  20. BROADBAND IN DEVELOPING COUNTRIES • An emerging consensus has been growing as to which pre-conditions are necessary for successful BB investment in developing countries, among these: • Adoption of supportive regulations that embrace innovation and competition • Set up mutually beneficial public/private partnerships • Invest in infrastructure and the latest innovative technology • Encourage competitive environments • Release spectrum suitable for sustained BB development

  21. CONCLUSIONS • The Avanza Plan has been the main policy instrument for the development of the Information Society in Spain, with a successful public partnership between the central Government and regions of Spain • BB subscription has reached 97 % of internet users (50% in 2003) • BB coverage extends today to 99% of population (80% in 2004) • Avanza 2 will continue to improving coverage and quality of networks and services, especially regarding rural areas • The Avanza infrastructures Program will secure a complete availability of BB access in rural areas across Spain, with technical and economical conditions similar to those existing in urban zones • The Avanza targets are fully in tune with the EU objectives of turning BB into one of the main drivers of economic growth, innovation and social inclusion , as well as one of the main economic stimulus within the Economic recovery program (EERC)

  22. CRISTÓBAL GUZMÁN cguzmanl@mityc.es Tel: +34 91 346 2390 FRANCISCO MARTÍN fjmartin@mityc.es Tel: +34 91 346 2267 ESTELA CONDE econde@mityc.es Tel: +34 91 346 2886 LUIS FRAUCA lfrauca@mityc.es Tel: +34 91 346 2240 THANK YOU FOR YOUR ATTENTION!

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