Connectivity - towards a European Gigabit Society

1. Connectivity
Towards a European Gigabit Society
DigiWorld Summit
Montpellier, November 2016

2. Connectivity
Key messages
Gigabit society targets and importance of connectivity
was announced in September 2016

3. Gigabit Society
Objectives
Strategic connectivity objectives for 2025…
All main socio-economic drivers should have access to extremely
high - gigabit – connectivity
•For e.g. schools, transport hubs and main providers of public
services as well as at digitally intensive enterprises.
•Will focus investments on natural demand aggregators, promote
skills, create demand and deepen the reach of fibre backhaul
All European households, rural or urban, should have access to
connectivity offering a download speed of at least 100 Mbps
•Upgradable to Gigabit speed
•Improve connectivity in rural areas to avoid a digital divide and
enable emergence of new services linked to e.g. tourism, online
administration, agriculture
All urban areas and major roads and railways should
have uninterrupted 5G coverage and 5G should be commercially
available in at least one major city in each EU Member State by
2020

4. Gigabit Society
Measures
…will be reached through 3 main actions…
The Review of the Telecoms Regulatory
Framework
• European Electronic Communications Code ->
REFIT modernisation
Wi-Fi for Europe: targeted voucher scheme
• Regulation amending CEF -> to bring direct
benefits to citizen
The 5G Action plan
• Commission Communication -> to foster
European industrial leadership
3
1
2
… among a number of other initiatives

5. Measures
Electronic Communications Code
• Market regulation only where end-user interest requires it and where
operators' commercial arrangements don't deliver competitive outcomes
• Reduced regulation where rival operators co-invest in very high-capacity
networks & easier for smaller players to be part of investment projects
• Making investment case more predictable for "first movers" who take the
risk to invest in less profitable areas, such as rural areas
• Easier to switch suppliers when consumers are signed up to bundles
• Ensure vulnerable groups (like the elderly or disable people) have the right
to affordable internet contracts
• New provision for usage monitoring by end-users & strengthened provision
on price and quality comparison tools
Electronic Communications Code
1 Modernisation of current telecoms rules to drive investment
Increased competition and predictability for investments:
Stronger consumer protection

6. Measures
Electronic Communications Code
• Long licence durations, coupled with more stringent requirements to
use spectrum effectively and efficiently.
• Coordination of basic parameters such as the timing of assignments
to ensure timely release of spectrum to the EU market
• More converged spectrum policies across the EU
• Selected rules extended to new online players which offer equivalent
services to traditional operators, to ensure security requirements apply.
 Possibility for users to reach the EU emergency number 112 via
such online services in the future with now additional costs More
A safer online environment for users and fairer rules for all players:
Better use of radio-frequencies

7. Measures
Electronic Communications Code
• Require NRAs to map network investment intentions and
empower them to sanction for misleading information to
seek investors in under-served areas.
• SMP wholesale-only networks only subject to fair and
reasonable access obligations coupled with ex post NRA
control
• Clarify the symmetric access regime to non-replicable assets,
which remains limited to in-building wiring or cables in most
circumstances, but can be extended beyond the first
concentration point in lower density areas where
infrastructure competition is economically or physically
impossible.
Investment easier to plan and undertake

8. Measures
Electronic Communications Code
• One agency (with legal personality) through merger of former
BEREC Office and Board of Regulators.
• Efficient co-operation and division of tasks for NRAs, BEREC and
European Commission + RSPG on strategic spectrum advice
• Minimum harmonisation of NRA competences at national
level & to be independent from the sector and separated from
undertakings
New governance model for regulation
Enhanced BEREC roles:
Guidelines on:
• geographical surveys,
• common approaches to meeting
transnational demand,
• minimum criteria for reference offers,
• common criteria for the management
of numbering resources,
• quality-of-service parameters,
• Role in spectrum peer review (link to NRA
competence to define regulatory and market-shaping
aspects of ECNS spectrum assignments);
• Double-lock powers (together with Commission)
concerning regulatory remedies;
• Adopt binding decisions on (i) identification of
transnational markets and (ii) on contract summary
template;
• Role in establishing single maximum termination rate

9. Measures
WiFi4EU
WiFi4EU
2 Free Wi-Fi for Europeans in public spaces
 120 million of EU investment for interested local
authorities to offer free Wi-Fi in public spaces
At least 6000 to 8000 local communities
49-50 million connections per day
 How will it work?
• The EU to fund the equipment & installation with vouchers;
public bodies to pay monthly subscription & maintenance
• Local communities need to commit to providing very high
speed internet via WIFI4EU, and that they are not competing
with a similar, existing private or public Wi-Fi offer

10. Measures
WiFi4EU
 Who will benefit?
WIFI4EU access points will reach both local
residents and visitors across the EU
All Europeans
Public administrations, hospitals, libraries
and other bodies with a public mission
They can take advantage of the access points to
develop & promote their own digital services,
such as e-government, e-health or e-tourism

11. Measures
5G Action Plan
Action plan for 5G
3 Common roadmap for a coordinated deployment of 5G in 2020
 Common EU calendar for a coordinated 5G commercial launch in 2020
 Joint work with Member States and industry stakeholders to:
 Identify and allocate spectrum
bands for 5G
 Organise pan-European 5G
trials as of 2018
 Promote common global 5G
standards & encourage the
adoption of national 5G
deployment roadmaps across
EU Member States

12. Measures
Other activities
Supporting the Gigabit Society
Public support to investment
• Connecting Europe Broadband Fund
• Blending of funds from different sources: EFSI, ESIF,
CEF, etc.
• Adequate budgetary resources for digital transformation
of European economy and society in post 2020 financial
programming
• Reflection on State Aid process
Support for Internet connectivity and
convergence
• Revision of National Broadband Plans by Member
States by the end of 2017 taking into account 2025
perspective
• Broadband Competence Office – participatory
broadband platform
• Assessment of Broadband Cost Reduction Directive
implementation by July 2018

13. Financing
Sources
The network financing might come from many sources
European Fund for Strategic
Investments
• Juncker's Plan – up to €315 billion to be triggered
for investment
European Structural and
Investment Funds
• Up to €20.5 billion available for digital areas
Connecting Europe Broadband Fund
• €500 million fund is currently being set up for
investment in broadband

14. Financing
EFSI – Current status
Source: The Investment Plan for Europe State of Play; July 2016
European Fund for Strategic Investments triggered
€115.7 billion of investments
97 infrastructure and
innovation projects
received €13.6 billion
from EFSI

15. Financing
EFSI – Project Cycle
Source: The Investment Plan for Europe State of Play; July 2016
European Investment Bank manages the process…

16. Financing
EFSI – Support
…supported by EIPP and EIAH
European Investment Project Portal European Investment Advisory Hub

17. There is a hefty amount of €20.5 billion in structural
funds available for digitally related projects
Funds
available in
regions in €
million
Financing
ESIF

18. Thank You!
http://ec.europa.eu/digital-single-
market/en/broadband-europe
@broadband_eu

19. Backup
DRAFT 19

20. Connectivity
Context
What is the situation today?
The internet has transformed our society and our economy and
made people's lives easier
Europeans use the internet to
buy products
and services
do their
banking
read & watch
the news
of European enterprises use
cloud
computing
of European SMEs sell
online

21. Connectivity
Context
EU telecoms rules have brought basic broadband to all Europeans at low prices
Price for 12-30 Mbps broadband has dropped by 57% since 2007
At the same time, internet traffic continues to grow at an unprecedented rate
Global mobile internet & internet
traffic 2015- 2020
exabytes

22. Connectivity
Context
Fixed internet connection
• In 2015, 71% of European households had
access to a fast fixed internet connection
• But this goes down to 28% for households
in rural areas
4G mobile coverage
• In 2015, the EU average of 4G mobile
coverage is 86%
• But this goes down to 36% for households
in rural areas
This is not enough to address the growing need for speed, quality and
reliability of the infrastructure  EU action is needed