Panel: How broadband policy can contribute to deploy secured and universal broadband access. Presentation:
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1 Panel: How broadband policy can contribute to deploy secured and universal broadband access Presentation: Initiatives to deploy broadband access in Europe Erik BOHLIN Chalmers University of Technology, Sweden Presentation presented at the PTC January 2012, Honolulu, Hawaii
2 Broadband policy in the EU since eeurope - An information society for all (eeurope 2002, eeurope 2005) 2005 i2010 A European information society for growth and employment 2010 The digital agenda for Europe Target: by 2013 basic broadband for all broadband coverage for 100% of EU citizens by 2020 fast broadband - broadband coverage at 30 Mbps or more for 100% of EU citizens by 2020 ultra-fast broadband 50% of European households should have subscriptions above 100 Mbps 2
3 Broadband market overview Broadband penetration at home, % of EU households, 2010 (Source: European Commission) 3
4 EU Fixed broadband subscribers per 100 inhabitants, by technology, January
5 Fixed broadband lines by technology at EU level, July 2010 Source: European Commission 5
6 Status of EU broadband market NEW RECOMMENDATION Access to PSTN for res & nonres. Call orig. on fixed network Call term. on fixed network Voice call term. Term. segments Unbund. access Broadb. access on mobile LL networks Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxemburg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden UK Market 1 Market 2 Market 3 Market 4 Market 5 Market 6 Market 7 Effective competition -no ex ante regulation No effective competition - ex ante regulation Partial competition - partial ex ante regulation Source: European Commission 6
7 Initiatives to achieve broadband target Non-regulatory measures - public funding (e.g., loans, grants to public-private partnership), through the Broadband Guideline. - the Structural Fund Program for ; earmark almost 2.3 billion Euro - the Financial Perspectives a Connecting Europe Facility; 9.2 billion Euro (new proposal) Regulatory measures regulatory framework (5 Directives, 1 regulation), amended in NGA Recommendation Radio spectrum policy program the 3rd periodic review of Universal Service Directive The last three items will be elaborated upon below 7
8 NGA Recommendation (2010) - covers remedies to be imposed upon SMP on Market 4 (access to wholesale physical network infrastructure) and Market 5 (wholesale broadband access) - SMP on Market 4: remedies to be imposed are access to civil engineering infrastructure (at cost-oriented prices) access to the terminating segment in the case of FTTH (at cost-oriented prices) unbundled access to the fibre loop in the case of FTTH (cost-oriented, risk premium, margin-squeeze test) unbundled access to copper sub-loop; FTTN (cost-oriented) - SMP on Market 5: remedies to be imposed are wholesale broadband access remedies should be maintained or amended for existing services and their chain substitutes new wholesale broadband access products should be made available in principle at least 6 months (cost orientation) - in order to provide investment incentives, geographical variation is allowed. Moreover, limited risk premiums are possible to be included. 8
9 Spectrum policy A proposal for a Radio Spectrum Policy Programme was presented by the European Commission in September 2010, outlining at a strategic level how the use of spectrum can contribute to the most important political objectives of the European Union from 2011 to 2015, among them to stimulate wireless broadband. After debate in the European Parliament, and negotiations with the European Council, a common position on the first multi-annual Radio Spectrum Policy Programme (RSPP) was agreed upon in December The European Parliament is expected to approve the draft Decision at its Plenary of February 2012 for final adoption. The Decision on RSPP will create a comprehensive EU Radio Spectrum Policy Programme until 2015 to complete the internal market, particularly in line with the Europe 2020 initiative and the Digital Agenda for Europe. 9
10 From the Radio Spectrum Policy Program, Article 2 Member States shall cooperate with each other and with the Commission in a transparent manner, in order to ensure the consistent application of the following general regulatory principles across the Union: (a) encouraging efficient use of spectrum to best meet the increasing demand for use of frequencies; (b) applying technology and service neutrality in the use of spectrum for electronic communications networks and services, in accordance with Article 9 of Directive 2002/21/EC (Framework Directive), and where possible for other sectors and applications, in such a way as to promote efficiency of spectrum use, in particular by fostering flexibility, and to promote innovation; (c) applying the least onerous authorisation system possible in such a way as to maximise flexibility and efficiency in spectrum usage; (d) guaranteeing the functioning of the internal market, in particular by ensuring effective competition. 10
11 Towards broadband USO? Policy Papers Year Directives 1987 Green Paper: reserved services were offered on a universal basis 1990 ONP Directive: Harmonization and open network principle must be followed Service Directive: liberalized all services except voice telephony 1993 Green paper on dev. USO for telecom in a competitive environment 1994 Council Resolution on Universal Service Principle 1992 ONP Leased line Directive Declared Leased Line as ONP; a form of universal service was added 1996 Green Paper on Universal Service: USO an evolving concept 1999 Green Paper: issues of majority and social exclusion were raised to broadband 2005: Public Consultation on USO 2010: Public Consultation on USO 1995 ONP Voice telephony Directive: Declared fixed voice as ONP; common scope of USO was identified 1997 Amending 1990 ONP Directive: definition of universal service identified: minimum set of services regardless of location at affordable price 1998 Universal Service Directive: principles of USO elaborated: fixed PSTN connection for voice, fax, data; affordability defined, USO designated operator defined 2002 Universal Service Directive: issues of majority and social exclusion added, and periodical reviews of USO mandated 2009 EU Telecom Reform: amend USO Directive by taking out 56k/bit preamble of functional Internet, among others
12 Recent development of broadband USO (November 2011) - The 3 rd periodic review of USO concluded that there is no need to change the basic concept and principles of universal service as an instrument for preventing social exclusion. -The 2009 Telecom Package gives Member States the flexibility to define the appropriate data rate for network connections delivering functional internet access in the light of national conditions. - Basic broadband access can therefore be part of USO at national level in justified cases -To minimise market distortions, Member States should use other public intervention tools other than USO to ensure broadband availability 12
13 Telephone access Telephone access at home, % of EU households, (Source: E-communications household surveys, July 2011) 13
14 Conclusions - The EU is still dominant in the DSL technology but political ambitions are to increase fiber penetration, as shown in the Digital Agenda - There are still competition problems in the broadband markets - The NGA recommendation tries to resolve both concerns by implementing LLU for fiber to increase competition, at the same time providing investment incentives - The RSPP sets out a new foundation for Europe to coordinate spectrum, with new possibilities for wireless broadband deployment - The EU review of Universal Service concluded recently that broadband should not be a requirement of the collective EU USO but individual member states are allowed to set broadband targets for their USO 14
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