1 EU Regional Policy … supporting improved broadband access John WALSH Unit D.2. Thematic development, innovation Regional Policy Directorate General European.

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EU Regional Policy … supporting improved

broadband access

John WALSH Unit D.2. Thematic development, innovation

Regional Policy Directorate GeneralEuropean Commission

http://ec.europa.eu./comm/regional_policy

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Investment Guidelines 2007-2013 for ICTs

Demand / services: Uptake of ICTs by firms and households investment in human capital Promote an open and competitive digital economy

and inclusive society

Access: Ensure availability of ICT infrastructure where the

market fails to provide it at an affordable cost.

See: http://ec.europa.eu/regional_policy/sources/docoffic/2007/osc/index_en.htm

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Planned ICT Investments Relative spending by country as % of EU support

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Allocations to

Broadband

Project selection to

end-2009

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Known ERDF broadband / NGA projects

• Major projects (>50m€ total cost) 6 so far all - Fr 2 – UK 2 (NGA) – LT – IT 522 m€ in total 34% average ERDF grant

• NGA – 10 recent state aid approvals involving ERDF:UK - 3 cases (Cornwall, Shetlands, Yorkshire) Spain - 2 cases (Galicia, National) Estonia (Estwin), Finland, Italy, Portugal, Sweden,

- 1 case each;More expected

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Challenges for public authorities

• Capacity to conceive & manage such schemes with public interest in mind (ensuring competition)

• Consulting, coordinating players … public & private

• Clear definition of objectives – not just of technological solution but of benefits

• Measurement of benefits

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Supporting policy learning

• Learning Networks: http://www.b3regions.eu/ Guidance on demand aggregation, funding

models, state aid, e-government, observatories

• Broadband portal: Link

• Study on financing models for regions - forthcoming

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DG REGIO Guide on Broadband Implementation

• AGRI - COMP - INFSO - REGIO

• Provide a basis for independent guidance for broadband investment by public authorities

• Facilitate effective use of allocated EU funds.

• Foreseen publication: June 2011

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• Present models of investment on the basis of existing projects already examined and approved under regional/rural and state aid rules.

• Main tasks include various forms of PPPs, user-based initiatives draw lessons from past cases; identify success factors of successful state aid broadband

projects analyse advantages/disadvantages of different models

intervention

• Elements to address Structuring a call for public procurement effects of the conditions required by the state aid rules

(e.g. mapping, public consultation, "open access", price benchmarking, etc.)

Other broadband guidelines

Scope of guide Guide

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Analysys Mason - projects from W. Europe

Portugal

Spain

France

UnitedKingdom

Ireland

Iceland

Norway

Sweden

Finland

Monaco

Switzerland

Italy

GermanyBelgium

Netherlands

Luxembourg

Liechtenstein

San Marino

VaticanCity

Andorra

Austria

Denmark

Malta

EUR37m 3-year plan for FTTP

nationally

EUR422m Parisian public-private public-

owned infrastructure

build

EUR500m 8-year public-private

project to construct

regional FTTH

EUR223m national public-

private wholesale infrastructure

build

EUR600m Catalan FTTH public-private

plan

EUR120m fibre infrastructure built owned by

Zurich municipality

EUR141m national plan for

public-private broadband

access networks

EUR18m public-private FTTH

plan to 100% of homes in

Amsterdam

Planned FTTH built and owned

by City of Vienna to 1m homes

National EUR210m rural

broadband access public-

private plan

Publicly-owned utility co. building

FTTH in 10 urban

municipalities

Stockholm public-built and

funded non-profit FTTH

infrastructure

EUR137m 6-year public-private

plan for national 100Mbit/s access

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In E. Europe … little public detail

National strategy to encourage operators to connect new

users

EUR790m 8-year national strategy

in place

EUR37m public plan for FTTH to 90% of homes in

Wielkopolska

Public fund 75% of costs for

projects under National Access

Plan

EUR2.1bn 4-year private-

partnership FTTH plan for 2m homes in

Athens

EUR73m 5-year national private-partnership plan, to tender in 2011

EUR20.4m 6-year national broadband access plan

25-year staged FTTH roll-out in Zvolen pop. 45

000

Public-private partnership for

urban fibre network rings

EUR11m national access

mixed-technology plan

EUR60m 5-year plan to extend

existing network for rural access

EUR384m national public-

private partnership fibre

network

EUR23.3m rural access plan with

35% public funding

Romania

Moldova

Poland Belarus

Lithuania

Estonia

Latvia

Czech Rep.Slovak Rep.

Hungary

Serbia

Slovenia

Bosnia-Herzegovina

AlbaniaMacedonia

Greece

Bulgaria

GeorgiaAzerbaijan

ArmeniaMontenegro

Croatia

Cyprus

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3 degrees of state involvementBuild, own and operate network

Stockholm’s FTTH network was entirely constructed by StokAB, a public company wholly owned by the City of Stockholm. StokAB initially offered dark fibre only, but now also operates the active infrastructure, manages wholesale open access for retail service providers, and administrates municipal end-user services at layer 3 of the network.

Fund network and take ownership after a set date

The SICOVAL conglomerate provided 27% of the funding for the construction of the infrastructure in its municipalities. In return, the partner operator manages the network under a concession for a fixed period of 20 years. At the end of this period, the network reverts wholly to the control and ownership of the public conglomerate.

Fund network

The Xarxa Oberta network is yet to be built, but the proposal is that public money will account for 73% of the construction costs. Despite this undertaking, there is no provision in the arrangement of the project for the resulting infrastructure to become public property. Instead the network is to remain the property of the company tendered to build and operate it.

Iceland

Austria

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.. also differences regarding the network component being funded Iceland

Austria

Middle mile

The EstWIN model is to construct a new middle-mile fibre-optic transport network to extend the network from the existing operator core networks, to new point-of-presence end locations, no more than 1.5km from 98% of all homes. The last mile is expected to then be constructed by retail service providers, using either fibre, copper or wireless.

Last mile

The Lazdijai/Alytus project was conceived to connect the remote rural towns in these regions to the ongoing national RAIN fibre network roll-out. As part of RAIN, new backhaul and transport networks were constructed; this project is extending that connection through the mountainous terrain with a WiMAX radio last-mile network.

Entire network

The MetroWeb project in Milan initially constructed an entirely new fibre-optic network, from core to premises, reusing only what passive infrastructure had been laid previously as part of an aborted Telecom Italia roll-out. Telecom Italia is now working in conjunction with MetroWeb to extend this network.

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Thank You

Unit D.2: Thematic coordination, innovation

Regional Policy Directorate GeneralEuropean Commission

http://ec.europa.eu/regional_policy/index_en.htm

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EU Cohesion Policy 2007-2013Eligible Regions

Total Budget:EUR 347.4 Bn (35,6% of the EU-Budget)

Of which 82% for Convergence Regions,15% for Competitieness

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Regio Atlas : Link