EN Official Journal of the European Union C 207/87

Opinion of the European Committee of the Regions — The review of the telecom package

(2017/C 207/15)

Rapporteur: Mart Võrklaev (EE/ALDE), Mayor of Rae Municipality Reference documents: Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions ‘Connectivity for a Competitive Digital Single Market — Towards a European Gigabit Society’ COM(2016) 587 final Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions ‘5G for Europe: An Action Plan’ COM(2016) 588 final Proposal for a Regulation of the European Parliament and of the Council amending Regulations (EU) No 1316/and (EU) No 283/2014 as regards the promotion of Internet connectivity in local communities COM(2016) 589 final

I. RECOMMENDATIONS FOR AMENDMENTS

Amendment 1

New amendment proposal

Recital 11

Text proposed by the Commission CoR amendment Given Internet connectivity needs within the Union and the urgency of promoting access networks that can deliver, throughout the EU, an Internet experience of high quality based on very high-speed broadband services, financial assistance should seek to attain a geographically balanced distribution. Given Internet connectivity needs within the Union and the urgency of promoting access networks that can deliver, throughout the EU, an Internet experience of high quality based on very high-speed broadband services, financial assistance should seek to attain a geographically balanced distribution that contributes — within the limits of the actually received proposals, and in full compliance with the principles for specific financial forms of assistance as defined in the Financial Regulation — to the EU’s economic, social and territorial cohesion by taking particular account of the needs of local communities .

Reason

A geographically balanced distribution is meaningless if it does not serve the cohesion objective.

Amendment 2

New amendment proposal

Recital 11

New point:

Text proposed by the Commission CoR amendment To ensure that local wireless access points are also installed in smaller towns and rural areas, a dedicated communication campaign about this financial assistance needs to be implemented in cooperation with Member States, regional authorities and relevant associations of local authorities.

Reason

It is essential that information about the WIFI4EU initiative reaches also smaller towns and rural municipalities.

Amendment 3

New amendment proposal

Article 2(3)

Text proposed by the Commission CoR amendment 3. Article 5 is hereby amended as follows: 3. Article 5 is hereby amended as follows: a) paragraph 7 is replaced by the following: a) paragraph 7 is replaced by the following: ‘7. The total amount of the budget allocated to financial instruments for broadband networks shall not exceed the minimum necessary to establish cost-efficient interventions which shall be determined on the basis of ex-ante assessments as referred to in Article 14(1) of Regulation (EU) No 1316/2013. ‘7. The total amount of the budget allocated to financial instruments for broadband networks shall not exceed the minimum necessary to establish cost-efficient interventions which shall be determined on the basis of ex-ante assessments as referred to in Article 14(1) of Regulation (EU) No 1316/2013. That amount shall be up to 15 % of the financial envelope for the telecommunications sector referred to in point (b) of Article 5(1) of Regulation (EU) No 1316/2013.’ That amount shall be up to 15 % of the financial envelope for the telecommunications sector referred to in point (b) of Article 5(1) of Regulation (EU) No 1316/2013.’ b) the following paragraph is added: b) the following paragraph is added: ‘5a. Action contributing to the projects of common interest in the field of providing free local wireless connectivity in local communities shall be supported by: ‘5a. Action contributing to the projects of common interest and complying with defined minimum technical standards in the field of providing free local wireless connectivity in local communities shall be supported by: (a) grants; and/or (a) grants; and/or (b) forms of financial assistance other than financial instruments.’ (b) forms of financial assistance other than financial instruments. (c) The Commission sets the minimum technical standards referred to in paragraph 5a by means of a delegated act .’

Reason

Minimum technical requirements for the WiFi4EU network are essential. Developing uniform requirements avoids the situation whereby a network is created that is based on outdated technology or tainted by quality-related issues.

Amendment 4

New amendment proposal

Article 2(6)

Text proposed by the Commission CoR amendment 6. In the Annex, the following section shall be inserted: 6. In the Annex, the following section shall be inserted: ‘SECTION 4. WIRELESS CONNECTIVITY IN LOCAL COMMUNITIES ‘SECTION 4. WIRELESS CONNECTIVITY IN LOCAL COMMUNITIES Actions aiming at the provision of free local wireless connectivity in the centres of local public life, including outdoor spaces accessible to the general public that play a major role in the public life of local communities, shall be eligible for financial assistance. Actions aiming at the provision of free local wireless connectivity in the centres of local public life, including outdoor spaces accessible to the general public that play a major role in the public life of local communities, shall be eligible for financial assistance. Financial assistance shall be available to entities with a public mission such as local authorities and providers of public services undertaking to provide free local wireless connectivity through the installation of local wireless access points. Financial assistance shall be available to entities with a public mission such as local authorities and providers of public services undertaking to provide free local wireless connectivity through the installation of local wireless access points. Projects for the provision of wireless connectivity through freely accessible local wireless access points may receive funding if they: Projects for the provision of wireless connectivity through freely accessible local wireless access points may receive funding if they: 1) are implemented by an entity with a public mission capable of planning and supervising the installation of indoor or outdoor local wireless access points in public spaces; 1) are implemented by an entity with a public mission capable of planning and supervising the installation of indoor or outdoor local wireless access points in public spaces; 2) build on very high-speed broadband connectivity enabling delivery of high quality Internet experience to users that 2) build on very high-speed broadband connectivity and complying with the minimal technical specifications referred to in Article 5b, enabling delivery of high quality Internet experience to users that a. is free, easy to access, and uses state-of-the-art equipment, and a. is free, easy to access, and uses state-of-the-art equipment, and b. supports access to innovative digital services, such as those offered via digital service infrastructures; b. supports access to innovative digital services, such as those offered via digital service infrastructures; 3) use the common visual identity to be provided by the Commission and link to the associated online tools. 3) use the common visual identity to be provided by the Commission and link to the associated online tools. Projects duplicating already existing private or public offers of similar characteristics, including quality, in the same area shall not be covered. Projects duplicating already existing private or public offers of similar characteristics, including quality, in the same area shall not be covered. The available budget shall be allocated in a geographically balanced manner to projects meeting the above conditions in view of the proposals received and , in principle, on a “first come , first served” basis .’ The available budget shall be allocated to projects meeting the above conditions in a geographically balanced manner that contributes — within the limits of the actually received proposals , and in full compliance with the principles for specific financial forms of assistance as defined in the Financial Regulation — to the EU’s economic , social and territorial cohesion by taking particular account of the needs of local communities .

Reason

Minimum technical requirements for the WiFi4EU network are essential. Developing uniform requirements avoids the situation whereby a network is created that is based on outdated technology or tainted by quality-related issues.

II. POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS

1. Points out that, for the first time, basic access to broadband is considered a universal service. European citizens have the right to access functional internet at affordable prices, enabling full participation in the digital economy and society throughout the whole of the European Union. This is a very good step towards digital inclusion, including the need for special tariff options or the provision of vouchers to citizens with special needs and to villages and cities to provide public and free Wi-Fi access points;

2. considers that securing basic access to broadband is a general interest objective and its recognition as a universal service must go hand in hand with the full recognition of universal service obligations; this is of paramount importance in areas where the market does not deliver and where public investment is crucial;

3. understands that significant changes have taken place since the EU telecoms regulatory framework was revised in 2009. Though it contributed to ensuring EU-wide availability of basic broadband, new needs and ways of consumption are dramatically proliferating and will continue to do so in the coming years. The development of the Internet of Things, virtual and augmented reality, cloud computing, massive data management, sharing economy services and applications, 4.0 industries, all of it will accentuate the demands on high-capacity networks and connections;

4. stresses that we are designing now the infrastructure for tomorrow;

5. emphasises that the increase in data consumption (1) and simultaneous uses, the trends towards high upload/download speeds, the need for ubiquitous and instantaneous transmissions, at the same time responsive and reliable, will require the provision of very high-capacity networks ever closer to the end-user across Europe. The gigabit connectivity is already a reality in some countries — Japan, Korea — and Europe needs to achieve it for its growth and jobs, for its competitiveness and for its internal cohesion;

6. considers it important for economic and social stakeholders such as schools, universities, research centres and transport hubs, public service providers such as hospitals and educational establishments, and businesses to have a high-speed internet connection that enables users to upload and download data at a speed of at least 1 Gbit/s;

7. believes that all urban and rural households in the EU should have access to an internet connection with a download speed of at least 100 Mbit/s, which can upgraded to a speed of 1 Gbit/s;

8. shares the Commission’s view that all urban areas and the most important land transport routes should have full 5G coverage; supports the interim target whereby a 5G connection should be available as a commercial service in at least one major city in each Member State by 2020. In order to avoid piecemeal solutions, the European Commission must complete the standardisation that is still required for this new wireless technology as quickly as possible. There are other reasons why aiming to introduce this by 2020 is very ambitious: the current 4G networks, constructed only recently, have the potential to increase their speed to well over 1 000 Mbit/s, and telecommunication companies have invested significant sums in developing these networks, meaning that they may not be particularly receptive to another technology switchover if the right framework conditions are not in place;

9. endorses the new voucher scheme for free Wi-Fi connections, the launch of the Broadband fund with the EIB and the aim of increasing future financial support post-2020, and notes that this is a step in the right direction;

10. welcomes the Commission’s proposal to set up — by the end of 2016 and in cooperation with the Committee of the Regions — a participatory broadband platform to ensure that public and private bodies cooperate and firmly commit to investing in the development of the broadband network and to taking further steps to implement national plans for developing the broadband network; is open to comprehensive and constructive cooperation in setting up the platform;

11. suggests that the topics to be discussed at the Platform meeting should focus on: policy choices by exploring the best policy options with regard to the different local and regional competences and the specific needs at local and regional level; technology choices by discussing the application of the best technologies adapted to those areas; financial opportunities by engaging the EIB in the discussion and by investigating synergies of funds (CEF, EFSI, ESIF) and the new voucher scheme proposed for WIFI4EU and other matters with regard to capacity building measures for the local and regional level, mapping of IT investments and broadband coverage and the promotion of e-skills and e-government services;

12. considers that the main effect of the Broadband Platform should be to contribute to a faster, better and more sustainable deployment of high-speed broadband in rural and sparsely populated areas in the EU, because of their serious structural, economic and social problems and thus, contribute to reducing the digital divide in those areas;

13. notes that the plans are in line with the principles of subsidiarity and proportionality in that these issues affect all Member States and can only be regulated uniformly, to a high standard and effectively on an EU-wide scale;

14. understands that the European Digital Single Market (DSM) is about breaking silos and also making the EU internal market digital. The review of the telecom package aims at boosting Europe’s economy and competitiveness, encouraging communities to be active participants in the DSM and meeting Europeans’ growing connectivity needs;

15. highlights that characteristics such as rurality, remoteness and being an outermost area, in addition to low population density contribute to making a territory unattractive for private investment in ICT infrastructure. Compared to urban agglomerates, these areas face common challenges to broadband deployment, such as structurally lower and fragmented demand as well as higher unit (i.e. per end-user) deployment and infrastructure maintenance costs;

16. notes that connectivity demand in particular is a crucial driver of investment for private actors. As a consequence, market players have no economic convenience in areas where population density cannot guarantee a service request that justifies deployment costs. In areas affected by market failure and/or market bias, the public authorities’ roles are multiple. Indeed, evidence shows that local and regional authorities (LRAs) across Europe act as financing entities, risk takers, or initiators/facilitators of broadband deployment/upgrading initiatives;

Gigabit Society

17. emphasises the importance of developing next generation high-speed broadband networks, particularly in sparsely populated areas. All regulatory and financial measures in this connection are to be welcomed;

18. warns of the over-congestion that might be created by a greater availability of high-capacity connectivity in areas of excellence and/or knowledge. Productive activity would increase in those areas and there would be a greater influx of people with adverse effects on the regions. By contrast, it would go down drastically in other areas, particularly in terms of digital innovative activities and professionals in the technology sectors. High capacity connectivity should therefore be taken forward as uniformly as possible;

19. points out that solving the ‘last mile problem’ is important for the development of the EU as a whole and requires flexible measures;

20. suggests, from the next financial period, setting aside funds for developing access networks in rural and outermost areas in addition to the funds earmarked for developing a basic network;

21. stresses that prices for connectivity provide useful insights into competition and efficiency levels in communication markets. Benchmarking these prices allows stakeholders, including telecommunication operators, policy makers and consumers to evaluate progress towards their objectives. Having indicators to compare the connectivity prices could be of interest, as the OECD does in its report ‘Measuring the Digital Economy. A New Perspective’ (2);

22. stresses that when developing and planning the network it is important for public authorities to have direct access to a reliable internet connection. In order to guarantee the quality of these connections, state guidance and consultation at local level is important so that investment is optimised and the services can begin to be used quickly by as many users as possible;

23. notes that with a view to achieving the 2020 European Union (EU) broadband targets of coverage and penetration, some EUR 22 billion of EU public funds are already available over the 2014-2020 programming period for either upgrading existing broadband infrastructure or deploying new ones. EU funds are crucial not only for their direct contribution to the financing of broadband infrastructure, but also for the leverage effect they are expected to play in attracting investments from other sources, including private ones;

5G Action Plan

24. emphasises that the ‘fifth generation’ of telecommunications systems or 5G, will be the most critical building block of the digital society in the next decade. Europe has taken significant steps to lead global developments towards this strategic technology where wired and wireless communications will use the same infrastructure, driving the future networked society. It will provide virtually ubiquitous, ultra-high bandwidth, ‘connectivity’ not only to individual users but also to connected objects (Internet of Things). Therefore, it is expected that the future 5G infrastructure will serve a wide range of applications and sectors including professional uses (e.g. assisted driving, eHealth, energy management, possibly safety applications, etc.);

25. draws attention to the ICT Standardisation Priorities communication adopted last April by the Commission (3) which proposed concrete measures to speed up the development of common standards by focusing on five priority areas, being 5G one of it;

26. insists on the need to avoid 5G standards that are not compatible with each other being introduced in different regions;

27. points out that the local level can help develop the network and submit applications and can be useful in planning the network. In this way, the plans of local authorities involving the building of new roads or the location of other infrastructure can be taken into account when planning and developing the new 5G network;

28. considers it important to point out that the EU-wide introduction of products and services that are underpinned by 5G high-speed internet connections depends on the whole EU enjoying full high-speed internet coverage; also considers it important to avoid the mistakes made when introducing the 4G network and to ensure that the quality and speed of the network do not vary substantially between the individual Member States. The development of the 5G network should take place at the same time and at the same speed throughout the EU;

WiFi4EU Initiative

29. welcomes the initiative to give all interested local authorities the possibility of providing local people with a high-quality Wi-Fi connection free of charge in and around public buildings, as well as in parks, in public spaces, etc. Europe still has many places that do not have an adequate internet connection; there are also individuals who are unable to afford an internet connection. This programme serves to address this problem;

30. emphasises that care has to be taken to ensure that this scheme remains limited to new, complimentary WiFi access points. We do not want publicly funded initiatives to compete with existing private schemes;

31. welcomes the Commission’s plans to quickly develop options for implementing the WiFi4EU programme, as a result of which local authorities will, according to the current schedule, be able to issue the relevant proposals as early as the beginning of summer 2017;

32. welcomes the quick financial measures based on public sector vouchers — never before used in connection with EU financial assistance — which can be implemented quickly and lead to rapid results and less red tape; points out, however, that potential weaknesses of the voucher system (lack of transparency, delays or problems related to payment, differences in Member States’ procurement conditions, must be duly anticipated in order not to deter businesses from using the voucher system for projects;

33. stresses that ways of distributing financial assistance must be found that ensure that smaller towns and rural areas also benefit from WiFi4EU;

34. stresses that the funds to be distributed are limited and that the Commission is seeking to implement the WiFi4EU initiative as quickly and comprehensively as possible, which is why local authorities should be informed about the planned programme and the relevant conditions as early as possible;

35. point outs that early notification also enables local authorities to initiate preparations so that when calls for proposals are issued funds can be applied for quickly and the available resources can be efficiently deployed for the benefit of the local population, the country and the EU as a whole;

36. firmly believes that the Committee of the Regions should play a decisive role with a view to involving local and regional authorities and to fostering exchange of information and best practice;

37. considers it important to point out that local authorities must be made aware that they are obliged to provide broadband connections for the Wi-Fi network currently being developed and to ensure the day-to-day maintenance of the network. Points out that the WiFi4EU initiative must be sustainable and with low overhead costs for local authorities to implement it;

38. recommends drawing up minimum requirements for the WiFi4EU network. Developing uniform requirements avoids the situation whereby a network is created that is based on outdated technology or tainted by quality-related issues. Further recommends setting up an introductory WiFi4EU Initiative page which provides details about the initiative and its locations;

39. points out that the new networks must be safe for users and therefore recommends using network models based on eduroam (4)/govroam (5). This kind of model facilitates Europe-wide roaming for users already authenticated on the network and eIDAS (6) solutions can be used to authenticate users;

40. with a view to guaranteeing user-friendliness, considers it is desirable to avoid using a captive portal and to use a landing page after the user authentication step where appropriate. This makes using the internet easier and faster for end-users. The landing page that appears following authentication enables users to retrieve information concerning the services offered by the local authorities and includes a brief summary of the goals of the WiFi4EU initiative;

41. stresses that user data should not be requested as this is unpleasant for users and can lead to the unfounded fear that their details will be used for advertising and other undesirable purposes. Welcomes, therefore, the fact that the provision of personal data is cited among the types of consideration that would impede local wireless connectivity from qualifying as free;

42. welcomes the idea that the WiFi4EU network will be subject to continuous quality control and the results made publically available;

43. believes it is essential to create a common pan-European network through WiFi4EU (SSID); this would be good publicity for an EU initiative for creating free Wi-Fi networks and would also be a trademark for quick and secure pan-European Wi-Fi. Existing similar schemes complying with the minimum technical requirements and all other criteria of the WiFi4EU initiative, but that did not receive the financial assistance, should also be able to join the common branding upon their request, in order to enlarge the scope of the initiative.

Brussels, 8 February 2017. The President of the European Committee of the Regions Markku MARKKULA

(1) Studies suggest that companies that adopt big data analytics can increase productivity by 5 %-10 % more than companies that do not, and that big data practices in Europe could add 1,9 % to GDP between 2014 and 2020.

(2) Published on December 08, 2014, http://www.oecd.org/sti/measuring-the-digital-economy-9789264221796-en.htm

(3) COM(2016) 176 final, Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on ICT Standardisation Priorities for the Digital Single Market.

(4) eduroam — World Wide Education Roaming for Research & Education https://www.eduroam.org/

(5) Govroam refers to ‘government roaming’, and is a RADIUS-based infrastructure http://govroam.be/

(6) Trust Services and eID https://ec.europa.eu/digital-single-market/en/trust-services-and-eid