Brussels wants more money for broadband 

Presenting an economic recovery plan for the EU, Commission President José Manuel Barroso suggested triggering production and consumption in Europe by increasing public investment in key infrastructure. Of the €5 billion that the Commission intends to use to achieve this aim, €1 billion will be directed at broadband networks. The other four will be spent on energy interconnections.

If given a green light by the European Parliament and member states, the funding will be spent in 2009 and 2010. It comes from reserves of the EU budget which have not been used. The Commission hopes that the extra public money could spur private investment, deemed necessary to upgrade current internet connections. 

This is the first time that Brussels has singled out a specific figure to be spent exclusively on broadband. At the moment, member states can choose whether to use their structural funds for broadband, but they are not obliged to. Consulting firm McKinsey reckons another €300 billion of overall investment is required (see background).

The industry welcomed the Commission's fresh commitment to broadband but many regretted that today's crucial Telecoms Council (27 November) will not propose to review rules to facilitate building new networks in its overall reform of the telecoms sector.

Telecoms ministers are instead set to approve a text based on the original proposal from the Commission, which did not include references to new infrastructure: so-called Next Generation Networks (NGNs) for super-fast internet. Amendments by the Parliament, widely referring to NGN policies, will not be taken into consideration (EurActiv 17/11/08). 

The Council is set to only discuss future networks in a separate debate regarding a different Commission proposal , which is still at the first stage of the legislative process. Many are concerned that, by not including NGNs in the telecoms package immediately, the topic will be postponed even further, delaying private investment and running contrary to the urgency highlighted by the Commission in its recovery plan.

The gap between the national and Commission positions in terms of broadband is not limited to NGNs. The Council does not share the bold objective of reaching a broadband-for-all target by 2010, as proposed again by the EU executive in its recovery plan (EurActiv 17/03/08).

Moreover, ministers do not agree with the radio spectrum "revolution" called for by the Commission to exploit the digital dividend. The Council will today reject Brussels' proposals and instead adopt a rather conservative line in support of the current primary holders of frequencies: broadcasters. The Commission pushed instead for reallocation in favour of internet providers as means of exploiting the digital dividend to tackle the digital divide.

"To boost Europe's lead in fixed and wireless communications and accelerate the development of high value-added services, the Commission and member states should work with stakeholders to develop a broadband strategy to accelerate the up-grading and extension of networks. The strategy will be supported by public funds in order to provide broadband access to under-served and high cost areas where the market cannot deliver. The aim should be to reach 100% coverage of high speed internet by 2010," reads the European Commission plan.

ETNO, which represents incumbent telecoms operators across the EU, "welcomes the inclusion of broadband as one of the key priorities of the European economic recovery plan. The next generation networks are essential for Europe to really reap the benefits of broadband in terms of growth, competitiveness and citizens' welfare," reads a statement.

"Against this background, it is critical that the EU Telecoms Council that is meeting on 27 November puts the next generation access networks and the risky investments they entail at the top of the priorities of the current Review of the EU Regulatory Framework," added the statement.

ECTA, which brings together the alternative telecoms industry, is pushing for more investment too, but on the principle of non-duplications of networks. Innocenzo Genna, ECTA's chairman, said : "It is more vital than ever in these times of economic hardship that we maximise the use of telecoms networks and foster profitable investment to ensure at least one super-fast network is available to as many citizens as possible. Widespread duplication of telephone access lines has never been economical, even in the boom times, and is even less so now."

EICTA, which represents the European tech industry, "applauds the European Commission's plan to boost economic recovery in Europe through a series of 'smart actions' to be implemented immediately by the Member States. Industry is greatly encouraged that José Manuel Barroso has recognised the importance of rapid deployment of digital technologies and networks to drive economic growth and social prosperity," reads a statement.