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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