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Broadband for All through Universal Service?. 17 June 2010, Lisbon. The Impact of Broadband on Growth and Productivity (MICUS). Widespread take-up triggers economic impact. New objectives in European Digital Agenda. Basic broadband access for all by 2013
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Broadband for All through Universal Service? 17 June 2010, Lisbon
New objectives in European Digital Agenda • Basic broadband access for all by 2013 • Access for all to 30 Mbps and beyond by 2020 • Subscription by 50% of households to 100 Mbps by 2020
The Role of Effective Competition Competition, based on ex-ante regulation, has led to over 90% market coverage: At the end of 2008, fixed broadband networks covered almost 93% of the EU population (98% urban; 77% rural) As a result of effective wholesale access and increasing level of competition significant decrease in end user prices A pro-competitive legal framework is needed to move forward (see later)
Competition delivers higher speeds at lower prices UK: impact of unbundling on broadband prices and speeds Source: Analysys mason In competitive countries typical users receive 8Mbit/s, compared with 2Mbit/s in less competitive countries
Closed networks undermine NGA benefits • Closed FTTH and vDSL networks controlled by incumbent give little or no speed, price or service benefit to customers • Analysys Mason: Effective regulated access would lead to lower prices and higher speeds in Belgium, and could double adoption of NGA in Germany
NGAN rollout is expensive but clearly profitable in some areas Viability of NGA roll-out for incumbents across countries and technologies Replicability of NGA roll-out for a second mover, 80 % access to existing ducts at current cost-based prices Source: WIK-Consult
Effective regulation and strong enforcement result in higher levels of investment
Achieving Broadband for All Universal service is not the best tool to deliver broadband for all: Designed for traditional voice-based services (market is already delivering) Payphones and printed directories are much less relevant Inefficient funding mechanisms Dynamically developing markets Other instruments already in place
The Role of Targeted State Aid Where private investment in NGA networks is not commercially viable, for example in sparsely- populated, rural or remote areas, targeted state aid can play an important role in providing access to broadband: Community Guidelines for the application of State aid rules in relation to rapid deployment of broadband networks Public funding, not a sector-specific levy
The Role of Wireless Broadband Where the deployment of high-speed fibre infrastructure is entirely unreasonable, even with public funding, wireless broadband can contribute to bridging the digital divide: Important, complementary, role for wireless broadband (not substitutable for fixed) Non-discriminatory, pro-competitive allocation of spectrum by Member States RSPP should recommend a catalogue of solutions to the competitive challenge Opening up the Digital Dividend to wireless broadband services by 2015, at the latest More spectrum allocated for the rollout of mobile broadband services
Thank you for your attention! Erzsebet Fitori Senior Manager, Regulatory Affairs efitori@ectaportal.com