EN Official Journal of the European Union C 120/41

Opinion of the Committee of the Regions on universal service in electronic communications and future networks and the internet

2009/C 120/08

THE COMMITTEE OF THE REGIONS

— stresses that the requirement for an affordable functional internet access is essential for economic, social and territorial growth and inclusion across the EU.

— notes that as a service comparable to other utilities, such as water and electricity, broadband is now increasingly seen as a ‘4th utility’.

— highlights that there is a need for the EU to guarantee that services and high quality communications are offered at reasonable prices to all residents or consumers, independently from their social or geographical situation.

— emphasises the key role and responsibility of local and regional authorities in helping to ensure affordable broadband access in areas where the market fails, in providing leadership on pilot projects for bridging the e-Accessibility gap, and in developing new approaches of citizen-centred public e-services.

— has, on several occasions, analysed and discussed the range of solutions being implemented by local and regional authorities across Europe and recognises that there is no ‘one size fits all’ solution. What may be suitable for a large urban centre may not be so for other areas, such as a small mountainous region, with a complex, rugged terrain, or sparse population in which extra efforts are required for the provision of any kind of service.

Rapporteur : Robert Bright (UK/PES), Member of Newport City Council

Reference documents

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions on the second periodic review of the scope of universal service in electronic communications networks and services in accordance with Article 15 of Directive 2002/22/EC

COM(2008) 572 final

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions: Communication on future networks and the internet

COM(2008) 594 final

POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS (CoR)

A. Universal service in electronic communications

General remarks

1. tasked with ensuring that all who request universal service in electronic communications (e communications) are provided with services essential for participation in society and its development, welcomes the second periodic review of the scope of universal service in electronic communications networks. This is an important step in reviewing equality of access, inclusivity and participation in commerce throughout the EU. As a service comparable to other utilities, such as water and electricity, Broadband is now increasingly seen as a ‘4th utility’. The CoR has identified ICT as a driver for increasing competitiveness and better public services, within the EU's renewed Lisbon Strategy in order that: — the information and communication technologies underpin an information society which is open to all and meets the needs of all members of society, including those with disabilities, the elderly and all those at risk of social exclusion; — electronic communications address the issue of inaccessibility for citizens living in these regions (mainly rural areas) who currently do not have adequate access to information communications networks and services; — universal service for electronic communications, which requires a defined minimum service of specified quality or speed made available to all users, is better placed to close the digital divide in future; — universal service must be brought up to date, given that. since its implementation its scope has remained virtually unchanged and is still restricted to a single connection — Internet usage can grow in the future and is not limited in the European Union by issues such as an increasing scarcity of Internet Protocol addresses (IP) or security issues. In this context the CoR welcomes the European Commission ‘Internet of Things’ consultation and would underline the necessity for a move from IPv4 internet protocol to the upgraded IPv6 that facilitates the Internet’s expansion with a direct consequence for Europe’s competitiveness.

2. endorses the four specific elements in the scope of universal service directive and stresses that the future development of broadband access, universal service and the internet will have important implications for social, economic and territorial cohesion in the EU Member States. There is a need for the EU to guarantee that services and high quality communications are offered at reasonable prices to all residents or consumers, independently from their social or geographical situation, as well as to take the regional dimension into account more clearly when considering the consequences of the measures (1).

3. emphasises the key role and responsibility of local and regional authorities in helping to ensure affordable broadband access in areas where the market fails, in providing leadership on pilot projects for bridging the e-Accessibility gap, and in developing new approaches of citizen-centred public e-services (2).

4. stresses the need for EU telecommunications policy in general to be flexible and broad in scope in order to be able to adapt to rapid, unpredictable technological and market changes, which have an impact on all other sectors of society (3).

5. emphasises the need to develop fundamental measures in areas that are horizontal priorities in order to promote equal opportunities (e.g. making public websites universally accessible, developing broadband infrastructure). The intervention of the local, regional or national level is essential in ensuring this (4).

6. welcomes the Commission's efforts to start reflection on the future role of universal service in the provision of e-communications services, particularly with regard to the provision of broader access to electronic communications services for all users, including the disabled.

Sufficient universal access provided by e-communications markets

7. supports the Commission in undertaking a review of the universal service in electronic communications networks on a regular and frequent basis.

8. stresses that the requirement for an affordable functional internet access is essential for economic, social and territorial growth and inclusion across the EU.

9. recognises fundamentally that there is an inequality and difference of access, deployment and development across EU Members States which is most noticeable in those regions (mainly in rural areas) which lack the penetration of such affordable functional internet access in comparison to Urban and Metropolitan areas.

10. concerned that a divide has been created in terms not only of a digital nature but a social and economic one that is ever more reliant on digital technologies and access to them.

11. recognises the difficulties the markets have in providing affordable high speed broadband networks to certain geographical areas and calls upon the European Commission to develop policies and guidance that acknowledge market failure and facilitate state and public sector initiatives to develop open networks functionally separated from services in such areas.

Sufficient data rates to permit functional internet access

12. stresses that access to broadband at affordable prices throughout the EU is a basic prerequisite for guaranteeing the quality of public services, promoting competitiveness and productivity (5). High-quality broadband access at reasonable prices can increase the accessibility and quality of services provided by local and regional authorities while making it easier for micro, small and medium-sized enterprises to offer their products for sale. Remote regions and communities especially the outermost ones are expected to benefit considerably from more widespread and faster access to broadband services (6).

13. emphasises that special attention must be paid to the less economically developed regions, so that they can make use of the opportunities for effective convergence offered by ICT and can avoid the risks of exclusion (7).

14. reiterates the Riga target of Broadband reaching 90 % of the EU population by 2010, but that this is not enough on its own and should be complimented by other factors being taken into account: geographical spread, population density, etc. There remains a substantial disparity between Member States and the European Commission’s analysis that only 70 % of the rural EU population is so far covered (8).

15. urges the promotion of measures by local and regional authorities can serve as examples of user-centred e-government solutions to promote digital literacy and ensure conditions which are conducive to business and research activities in the ICT field (9).

16. urges the Commission to define broadband as an always-on service, which allows simultaneous use of voice and data services with minimum download and upload speeds that are sufficient to allow functional internet access in all regions.

Reference to broadband in amended scope of a universal service obligation

17. stresses that a lasting digital divide causes social and economic exclusion. Achieving equal opportunities in terms of digital access and skills is a social necessity; at the same time, it also offers untapped economic potential. It is important to use ICT as a new ‘social instrument’, linking ICT strategies to Community social policies (10) and to cohesion policy as an instrument for local and regional development.

18. expresses very serious concerns that a common pitfall in broadband deployment is the risk of market failure, where private operators perceive little return on infrastructural investment in remote, rural, low-population-density areas or where mountainous and upland terrain makes it a particularly complex and onerous task (11).

19. proposes the inclusion of mechanisms for the promotion of functional broadband internet access in rural areas, regions with low population density and the outermost regions. If necessary there should be support for investment in the development of ICT and infrastructure by local and regional authorities or, in cooperation with them, by small and medium-sized enterprises or through local initiatives (12).

20. calls for the formulation of specific measures such as EU Structural Funds to ensure clarity and consistency in the delivery of functional internet access across EU regions in advance of the Mid Term Review (MTR) of these programmes in 2010.

21. recognises the important contribution made by EU portals in promoting the exchange of best practice between all stakeholders in the design and development of Broadband open access networks using EU, national and regional funds in compliance with EU State Aid Rules (e.g. http://www.broadband-europe.eu).

22. in recognising that Broadband technology has a huge impact on the further development of the Single European Market as a whole, urges the European Commission to acknowledge, in its renewed policies that are being brought forward to address the current economic situation to consider the use of all mechanisms at its disposal to promote investment in these infrastructures.

23. believes that the competitiveness of the EU, the scope and quality of services, the productivity, and lastly, that the employment rate in many other sectors may largely depend on the availability of high speed functional internet access.

24. in an environment where national, regional and local authorities as well as other institutions provide more and more services to citizens through electronic means (‘eGovernment’, ‘eHealth’, ‘eLearning’, ‘eProcurement’), adequate access to broadband technologies becomes increasingly important in terms of democratic participation (‘eInclusion’) (13). Cooperation between local, regional, national and European authorities may also be strengthened by improving broadband access for public administration particularly in light of the EU Services Directive that is currently being transposed.

Sufficient flexibility of universal service obligation to cater for all market development across all states

25. considers that the Committee of the Regions has, on several occasions, analysed and discussed the range of solutions being implemented by local and regional authorities across Europe and recognises that there is no ‘one size fits all’ solution. What may be suitable for a large urban centre may not be so for other areas, such as a small mountainous region, with a complex, rugged terrain, or sparse population in which extra efforts are required for the provision of any kind of service (14).

26. recognises that there is still a significant digital competency gap, affecting, in particular, the elderly, economically inactive, less educated people and those who have not acquired the digital knowledge necessary for developing their digital skills in the workplace.

27. emphasises the importance of education and training courses which are geared to the needs deriving from the ongoing digital evolution of the whole of society, paying special attention to these vulnerable groups (15).

28. stresses the need to focus on the gap between broadband deployment and actual usage, which is failing to reach its full potential due to digital skills amongst the public that could be improved. To bridge this gap, measures need to be taken at local and higher level, to remove barriers to broadband use e.g., internet demonstration events, provision of public access points, (16) funding of educational projects run by residents' associations and other non-government organisations to teach digital skills, and enhancing competition between suppliers of broad band services.

B. Future networks and the internet

General remarks

29. tasked with assessing the next generational development of internet technologies welcomes the opportunity to review the new technological advances of future networks and the Internet of Things.

30. recognises that the internet is one of the most brilliant innovations of our time. Its potential to generate economic growth can bring about substantial benefits such as the creation of new services, the opening up of new investment and job opportunities, productivity gains, reduced costs and increased quality of life (17).

31. notes that in a short space of time, high-speed internet (broadband) has become fundamental to modern economies. It has changed the way we access the internet and how we use it.

32. welcomes with the future networks communication, that the European Commission wants to pave the way for possibly the biggest revolution that the internet has ever seen with the emergence of an Internet of Things.

Policy challenges

33. expresses hope that the general aim of the future communication and eventual update of the regulatory framework will be to promote competition and recognises the objective to ensure the availability of information society services subject to competition throughout the Community (18).

34. shares the Commission's view that the transfer of creative content services to the internet environment is a major change and highlights that the content of the new services and the new digital media must be planned not only on the basis of economic criteria but must be developed according to social and cultural needs (19).

35. urges the CoR to emphasise the importance of preserving cultural diversity and identity in a pluralistic European society in the future digital world (20).

36. emphasises the importance of a new approach to providing citizen-centred public e-services, and to the crucial role of local and regional authorities, which are responsible for developing such an approach. This is a task of particular relevance to remote, outermost and rural regions and island communities where the socio-economic benefits of developing ICT are vital for cohesion and offer the greatest added value (21).

37. stresses the requirement in order to prevent marginalisation from public services, administrations should take a multi-channel approach, allowing users to interact by whichever means they prefer (physical counter, website, digital TV, mobile telephony, etc.) (22).

38. emphasises the Community-based role of the interactive web (WEB 2.0), which is revolutionising communication between citizens and local authorities, while ensuring the maximum possible degree of transparency in decision-making mechanisms and strengthening participatory democracy;

39. calls for the Commission to develop further guidance for how regions and cities are to comply with EU State Aid rules, in particular for upgrading to next generation broadband where there is market failure for such services and for deployment of wireless broadband in regions.

40. stresses the need to design the future internet of things in a way that it can cope with the new risks to children and young people arising with the continuing digital convergence, growing broadband access, new internet enabled end-user devices (23).

41. calls for special importance to the security of transactions and to combating illegal and harmful internet content (24). Society is particularly sensitive to questions of consumer protection and personal data protection (25).

42. expresses appreciation for the attention the European Commission gives to enhancing the protection of individuals’ privacy and personal data in the electronic communications sector.

43. calls for strengthened security-related provisions and improved enforcement mechanisms and draws the European Commission's attention to the fact that certain measures for ensuring network security and consumer protection require coordination and implementation at international rather than EU level (26).

44. expresses hope that further activities will be aimed at stimulating and encouraging the development and application of technical solutions for dealing with illegal content and harmful conduct online, as well as at promoting cooperation and exchange of best practice among a wide range of stakeholders at local, regional, European and international level (27).

45. recognises the needs of the educational sector in receiving functional broadband services and for the creation of teaching materials in information technology and media skills to cover safe online environments. Stresses that actions should also be aimed not only at protecting children but also at instilling an active mastery of safe internet use (empowerment) (28).

46. recommends coordinating investigation activities in relevant fields within and outside the EU and developing knowledge concerning the ways people use online technologies, associated risks and the possible harmful effects the use of online technologies can have, including technical, psychological and social issues (29).

47. expresses the view that the success of telecommunications regulatory policy cannot be reliably evaluated at national level, as differences in telecommunications and services provision do not exist solely between EU regions but within regions: e.g. with densely populated towns and rural areas in each region diverging substantially from national averages (30).

48. calls on the European Commission to better monitor the availability and quality of services at a lower geographical level than has so far been the case, in order to pay greater attention to regional market differences and to ensure inclusivity (31).

Specific actions

49. stresses that free competition in telecommunications does not bring equal access and services to all regions or sub regions. The provisions on universal service need to be constantly, pro-actively revised in order to guarantee truly universal access to the information society (32).

50. proposes the inclusion of broadband services within the scope of existing universal services directive and requires national regulators to set out transparently the range of measures, take account of how technologies and speeds are evolving, detail resources and ultimately sanctions they will use to help implement a functional and open internet in that Member State. The CoR reminds the European Commission to be mindful that local and regional authorities and end consumers in the regions concerned should not be penalised either financially or face delays by operators awaiting outcomes from emerging arrangements for universal service in that Member State (33).

51. proposes that a set of clearly defined criteria (population density, map, network performance, nature of the terrain) should be established to help determine priority regions that suffer from market failure.

52. considers that in the future, the level of universal service required should not be set too low to meet the existing and future needs of current users. It must refer to more rapid functional internet connection that allows for the rapid advances in technology in the future. The Member States should be encouraged to lay down more stringent requirements for universal service at national level in accordance with Article 32 of the existing Directive (34).

53. recognises the need to identify and consider different models for the provision of broadband to the premises through the use of open access networks from the telecommunications exchange.

54. encourages public authorities, particularly at municipality level, to invest in the new networks and lower civil engineering costs by facilitating access to their ducts or by coordinating such upgrades with works on roads or other utilities, especially electricity or sewers.

55. requires the access to infrastructures, through public authorities and utilities, by providing sufficient open-access ducting on green-field sites and by mapping the existing infrastructure or making plans for civil works public and facilitates coordination between service providers and building owners when pre-cabling new premises.

56. recommends identifying effective new and flexible ways of intervening whether through policies providing economic support to infrastructure schemes set at local or regional level and coordinated at national and EU levels, or through guidelines on dealing with market failures, common in the above-mentioned areas, in accordance with the EU principles of free competition (35).

57. recommends further the encouragement and exchange of best practice (36) of local and regional authorities initiatives that make optimum use of the Structural Funds, the Rural Development Fund and State Aids in the supply and usage of broadband. The CoR has on several occasions shown the need for and the benefits of this approach.

58. calls upon the Commission to apply indicators on the regional distribution and use of ICT, to provide a continuous source of conclusions which would be useful and necessary for adopting measures to bring about socio-economic and technological convergence between the regions (37).

59. calls for firm proposals to promote the interests of users and consumers if an update to the Universal Service Directive is carried out (38).

60. Calls on the Commission to encourage the involvement of the public to improve administrative performance and services by establishing a permanent online facility to which users could send their comments and suggestions (39).

Brussels, 13 February 2009. The President of the Committee of the Regions Luc VAN DEN BRANDE

(1) CdR 520/99 fin.

(2) CdR 5/2008 fin.

(3) CdR 520/99 fin.

(4) CdR 5/2008 fin.

(5) CdR 5/2008 fin, CdR 272/2006 fin.

(6) CdR 252/2005 fin.

(7) CdR 5/2008 fin.

(8) CdR 272/2006 fin.

(9) CdR 5/2008 fin.

(10) CdR 5/2008 fin.

(11) CdR 272/2006 fin.

(12) CdR 4/2008 fin.

(13) The key role the access to broadband services plays for a number of other sectors of economy and public administration has also been highlighted in previous opinions of the Committee of the Regions; see: Opinion of the Committee of the Regions of 13 February 2007 on Bridging the Broadband Gap and i2010 eGovernment Action Plan, OJ C 146, 30 June 2007, pp. 63-68, points 1.3 to 1.5; Opinion of the Committee of the Regions of 13 April 2000 (footnote 1), point 2.3.

(14) CdR 272/2006 fin.

(15) CdR 5/2008 fin.

(16) CdR 272/2006 fin.

(17) CdR 272/2006 fin.

(18) CdR 274/2000 fin.

(19) CdR 252/2005 fin.

(20) CdR 94/2008 fin.

(21) CdR 5/2008 fin.

(22) CdR 272/2006 fin.

(23) IDATE, May 2006: see appendix.

(24) CdR 252/2005 fin;

(25) CdR 252/2005 fin;

(26) CdR 4/2008 fin;

(27) CdR 174/2008 fin.

(28) CdR 174/2008 fin.

(29) CdR 174/2008 fin.

(30) CdR 52/2001 fin.

(31) CdR 274/2000 fin.

(32) CdR 520/99 fin.

(33) CdR 272/2006 fin.

(34) CdR 274/2000 fin.

(35) CdR 272/2006 fin.

(36) http://www.broadband-europe.eu

(37) CdR 5/2008 fin.

(38) CdR 274/2000 fin.

(39) CdR 272/2006 fin.