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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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The impact of broadband on growth and productivity micus
The Impact of Broadbandon Growth and Productivity (MICUS)

New objectives in european digital agenda
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
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
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 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
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

Achieving broadband for all
Achieving Broadband for All levels of investment

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
The Role of Targeted State Aid levels of investment

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
The Role of Wireless Broadband levels of investment

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

Broadband for all through universal service

Thank you for your attention! levels of investment

Erzsebet Fitori

Senior Manager, Regulatory Affairs