PRIORITIES FOR eu FUNDING 2014 – 2020 IN ICT SECTO R

1. PRIORITIES FOR eu FUNDING 2014 – 2020 IN ICT SECTOR Ministry of environmental protection and regional development of the republic of Latvia

2. Strategies and policy planning documents • Complies with the priority’s “Smart, sustainable and inclusive growth” flagship initiative “Digital Agenda for Europe” of the strategic document Europe 2020: strategy for smart, sustainable and inclusive growth; • Complies with priority “Innovative government and public participation” and its long-term action direction “E-government and Public innovation” of the Sustainable development strategy of Latvia until 2030; • Complies with the priority “Growth supporting areas” and its action area “Availability of services for creating more equal opportunities for employment and living conditions” of National Development Plan 2014-2020; • Complies with the action area of the National ReformProgram of Latvia “EU 2020” “Rebalanced economic development, promoting development of tradable sectors and raising productivity” and its action “Development of information and communication technologies (ICT) and implementation of Single Market”; • Complies with the priorities “Innovative and competitive business and research environment” and “Modern infrastructure for growth and jobs” of the PositionoftheCommissionServicesonthedevelopmentofPartnershipAgreementandprogrammesin Latvia fortheperiod 2014-2020

3. Currentsituation Catalogue of Public services *Including 270 e-services from current EU funding period (EUR 137,94 million)

4. Strategicviewof ICT activities • Thematic objective: (2) enhancing access to and use and quality of ICT • Investment priority: • (b) developing ICT products and services, e-commerce and enhancing demand for ICT; • (c) strengthening ICT applications for e-government, e-learning, e-Inclusion and e-health

5. Strategicviewof ICT activities • ICT governance • ICT Organizational Governance Model of Public Administration (approved on 19 February 2013) • ICT strategy • Information Society Development Guidelines • ICT action plans • E-Government Development Plan (approved on 25 May 2011) • E-Skills Development Plan (approved on 18 May 2011)

6. InformationSocietyDevelopmentGuidelines 2014-2020

7. Strategicviewof ICT activities ICT Governance, Strategy, Policy Development of e-services, enhancing availability and use of public services Open and interoperable public data infrastructure Improvement of e-skills NextGenerationNetworkandBroadbandInfrastructure

8. Strategic view of ICT activities

9. Proposed activities for 2014-2020:Development of e-services, enhancing availability and use of public services • Target group: individuals, businesses, public authorities, local authorities, non-governmental organizations • Type of support: • transformation/re-design and cost-effective electronization of public service delivery processes in all public administration sectors, thus promoting cross-sectoral cooperation and provision of One-Stop Agency and Give Data Once principles both at national level and ensuring availability of services abroad; • development of cross border e-services within the framework and tasks of the Digital Agenda for Europe; • participation in the cross-border cooperation projects ensuring the full-fledged implementation of the Directive 2006/123/EK on services in the internal market and continuing the incorporation of Latvia in the European Single Market; • adaptation of the services for cooperation in the European Single Market by establishing solutions to make e-services available in other EU languages • Output indicators:775 developed or modernized e-services • ERDF funding: 110,49 million EUR National co-financing: 19,49 million EUR

10. Proposed activities for 2014-2020: Open and interoperable public data infrastructure • Target group: public authorities, local authorities, individuals, businesses • Type of support: • development of centralized ICT platforms and information systems providing modernization of public administration governance processes and efficiency of resources by developing open data infrastructure and interoperability solutions for data exchange with European Solutions • Output indicators:23 Centralized information systems’ platforms • ERDF funding: 61,22 million EUR National co-financing: 10,8 million EUR

11. Proposed activities for 2014-2020:Improvementof e-skills • Target group: individuals, businesses, public authorities, local authorities • Type of support: • different forms and levels of activities (e.g. seminars, educational trainings) targeted at improvement of people’s knowledge about public e-services and e-opportunities offers and their utilization, especially focused on people living in rural areas • educational trainings for state and municipal workers so they can strengthen their efficiency and productivity through effective organization of service delivery as well as they are able to support and educate clients on use of public e-services • Output indicators:256 000 individuals who have raised their digital competency • ERDF funding: 4,88 million EUR National co-financing: 0,86 million EUR

12. Expected result indicators

13. MinistryofTransportoftheRepublicofLatviaDepartmentofCommunicationsMinistryofTransportoftheRepublicofLatviaDepartmentofCommunications BroadbandnetworkinfrastructuredevelopmentinLatvia

14. Europe 2020andDigitalAgendagoalsforbroadband All Europeans should have access to higher internet speeds of above 30 Mbps; 50% or more of European households subscribe to internet connections above 100 Mbps; List of Actions Action 46: Member States to develop national broadband plans; Action 47: Member States to facilitate broadband investment; Action 48: Use structural funds to finance the roll-out of high-speed networks; Action 49: Implementing the European Radio Spectrum Policy Programme in Member States.

15. National Legal Basis in Latvia • Sustainable Development Strategy of Latvia until 2030; • National Development Plan 2014–2020; • Electronic Communication Sector Guidelines 2011 –2016; • Concept “Next Generation Access Network Development 2013–2020”

16. Weaknesses • Digitalgapbetweenurbanandruralareas

17. Weaknesses • There are no operators, intended to create access points to optical network in 71.2% of Latvia’s territorial units (in county municipalities); • Operators have no plans to develop the optical subscribe lines in the territories with middle and low economic interests; • The use of currently available radio spectrum, that can deliver to the end users internet access speeds defined in the Digital Agenda is not economic profitable in sparsely populated territories • Low purchasing power of inhabitants in rural areas.

18. Broadbandpenetrationand Internet usage Basic and high-speed (30 Mbps and above) penetration, July 2012 (Source: COCOM) According to CentralStatisticalBureauofLatvia, there was 62,5% of inhabitants in Latvia, regularlyusing Internet in 2010, 66,2% in2011 and 70,3% in 2012.

19. Developmentofbroadband(NGN) • Objectives: • Stateaided development of the broadband infrastructure - second phase of project “Next Generation Network for rural areas”; • Possiblesolutions: • Within the framework of Optical Network State Aid Program, provide EU funding; • Not to providefunding.

20. Developmentofbroadband(NGN) Objective: Development of the broadband infrastructure - second phase of project “Next Generation Network for rural areas”: Selected solution: Within the framework of Optical Network State Aid Program, provide EU funding; Benefits: The broadband access infrastructure will offer open wholesale access basis to third-party operators, who will be able to add their access infrastructures (i.e. the last mile network segment) and deliver broadband services to end-users (consumers, businesses and public institutions). By 2015 the first phase of the NGN project will ensure connection for approximately 165 points (1900 – 2000 km of fibre lines). By 2018 the NGN project foresees totally setting up 500 connection points to NGN (approximately 7000 km of fibre lines). Funding:EU funds 28,45 million EUR; Nationalco-finance 28,45 million EUR

21. Developmentofbroadband(last mile) • Objectives: • Stateaided development of the broadband infrastructure - establishment of last mile connections. • Possiblesolutions: • To establishlast mile connections insparselypopulatedandloweconomicactivityregions; • Not to establishconnections.

22. Developmentofbroadband(last mile) • Objective: Development of the broadband infrastructure - establishment of last mile connections: • Selected solution: To establish last mile connections in sparsely populated and low economic activity regions; • Benefits: Electronic communications operators will have opportunity to provide Internet access services to end users in rural areas. End-users will have the opportunity to choose the retail operator, the services and the last mile technology according to their needs. • Funding:EU funds 22,75 million EUR; Nationalco-finance 34,14 million EUR

23. Coherence and synergy between envisaged State Aid programmes • State Aid for the establishment of the last mile connections will be based on the study that will take into account: • impact of the project “Next Generation Network for rural areas”; • public auction of the 800 MHz band. • Roll - out of high speed fibre networks as well as allocation of rights of use of 800 MHz band will contribute to the development of last mile: • Electronic communication operators will have opportunity to connect their infrastructure to the high speed fibre networks in order improve internet access services to the existing end-users • 800 MHz band is suitable to cover sparsely populated areas and provide high speed internet access to end-users

24. Coherence and possible synergy with other relevant activities The activities “Next-generation network in rural areas” and “Development of the broadband infrastructure – the establishment of last mile connection” are complementary to the 2014-2020 planning period activities of the Ministry of Environmental Protection and Regional Development “Development of e-services, enhancing availability and use of public services”, “Open and interoperable public data infrastructure”and “Improvement of e-skills”. Creation of fast and ultra-fast data transmission network and availability of it in the whole territory of Latvia will lay the ground for sustainable development of e-services and digital content.

25. Thank you for your attention!