Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - Communication on future networks and the internet {SEC(2008) 2507} {SEC(2008) 2516}
Date: 2008-09-29
Institutions: European Commission
Subjects: Internet, competition policy, computer network, information technology, protection of privacy, transmission network

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.9.2008 
COM(2008) 594 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Communication on future networks and the internet  

{SEC(2008) 2507} 
{SEC(2008) 2516} 

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TABLE OF CONTENTS 

1. 

2. 

3. 

3.1. 

3.2. 

3.3. 

3.4. 

3.5. 

4. 

Introduction .................................................................................................................. 3 

Emerging trends will challenge the digital economy................................................... 4 

Challenges and responses............................................................................................. 5 

Stimulating investment in high-speed broadband access............................................. 6 

Broadband for all.......................................................................................................... 6 

Keeping the internet open: competition and convergence ........................................... 7 

Founding the internet of the future............................................................................... 8 

Privacy and security ..................................................................................................... 9 

Conclusion ................................................................................................................. 10 

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1. 

INTRODUCTION 

Over the last decade the internet has brought about significant changes in our economies and 
societies. It has proved a remarkable communication and networking infrastructure, adapting 
incrementally to the needs of its users. It has created a world-wide web of knowledge sharing, 
creativity  and  collaboration  and  has  been  a  major  driver  of  globalisation.  It  has  changed 
communication  habits  and  is  redefining  the  media  sector  by  promoting  the  convergence  of 
electronic  communications  and  media  services.  New  and  traditional  players  are  adapting  to 
the challenges through new business models.  

The Internet revolution is not over. In the next few years the internet will become much faster 
due to the rollout of very high speed broadband networks and this will permit the launch of 
many  new  interactive  media  and  content  services.  The  internet  will  also  become  more 
pervasive;  available  anytime  and  anyplace  due  to  the  widespread  development  of  low  cost 
wireless  broadband  and  the  merging  of  fixed  and  wireless  communications.  An  "internet  of 
things"  will  emerge  whereby  the  web  will  become  the  medium  for  machines,  vehicles, 
appliances, sensors and many other devices to interact. This will provide the basis for many 
new  applications,  such  as  energy  monitoring,  transport  safety  systems  or  building  security. 
Finally it is widely predicted that software delivered as a service over the web will lower costs 
and  raise  performance,  provoking  a  large  leap  in  productivity  for  all  businesses,  large  and 
small.  Effectively  deployed,  the  internet  of  the  future  will  bring  innovation,  productivity 
gains, new markets and growth and jobs in the next decade.  

reinforcement  of 

Europeans  have  massively  adopted  broadband  and  internet  services.  This  is  changing  the 
economy  and  transforming  lifestyles.  But  the  benefits  of  these  significant  changes  for  the 
European economy will only be unleashed if several challenges are tackled. First the internet 
economy  must  be  kept  open,  notably  to  innovative  business  models.  This  requires  the 
continuation  and 
regulation  of  e-
communications  markets  and  appropriate  consumer  safeguards.  Secondly,  equipping 
networks  for  the  internet  of  the  future  will  require:  major  investments  in  infrastructure  to 
create a high-speed internet; the development of the internet architecture to meet future needs; 
and more access to spectrum on a flexible basis to allow wireless services to take to the air. 
Third,  the  exponential  increase  in  internet  use  will  raise  security  and  privacy  challenges. 
Public authorities have a responsibility to make sure that citizens can have confidence that the 
internet of the future will be easy and accessible, safe and respectful of their privacy.  

the  current  pro-competitive 

This Communication should be seen as a preparatory step towards the internet of the future 
with a focus on setting the framework conditions for keeping the internet dynamic, open and 
making  it  more  secure.  This  Communication  looks  at  these  issues,  now  playing  out  on  the 
world  stage1,  and  translates  them  in  a  European  context  by  reviewing  the  main  challenges 
ahead (section 2) and their related policy challenges (section 3). In the light of the importance 
of the internet economy for EU competitiveness, it also proposes a Broadband Performance 
Index to monitor developments towards a high-speed internet infrastructure (section 4).  

But as Europe modernises itself for the economy of the future - in the context of the Lisbon 
Agenda post-2010 - it will also be of paramount importance that solid foundations are laid for 

1 

OECD  Ministerial  Meeting  —  The  future  of  the  Internet  economy  —  June  2008  and  WSIS  -  World 
Summit of information society http://www.itu.int/wsis  

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the  growth  that  can  come  from  this  internet  of  the  future.  A  broader  debate  on  the  policy 
implications of these developments will therefore be needed in the coming months in order to 
develop  the  broader  policy  response  to  the  internet  as  a  generalised  infrastructure  for 
modernising the economy and society. 

2. 

EMERGING TRENDS WILL CHALLENGE THE DIGITAL ECONOMY 

Evolution of social networks and the Internet of Services 

Web 2.0 

The  wide  take-up  of  broadband  has  caused  a  shift  in  the  way  the  internet  is  used4.  In 
particular,  we  have  moved  from  the  information 
provision  that  typified  the  web  in  the  mid-1990s, 
through  fundamental  advances  in  search  engines,  to 
the increasingly participative world-wide web of today 
known as ‘Web 2.0’. Experts are already talking about 
a  further  generation  of  the  web  that  will  permit  web 
usage to be automated5. Advanced features such as the 
3-dimensional  web,  as  popularised  by  environments 
such  as  Second  Life,  will  also  grow.  Europeans  are 
highly  active  in  using  these  emerging  Web  2.0 
services,  at  least  as  much  as  any  other  part  of  the 
world,  which  means  that  there  is  an  opportunity  to 
forge the next generation of social networking developments in the EU. 

New  and  user-friendly  applications  like 
blogs,  media  sharing  and  social  networks 
are  expanding  internet  participation.  24% 
of European citizens posted or participated 
in online fora in 20072. Enterprise 2.0, the 
business equivalent of web 2.0, is about to 
follow  the  rapid  rise  of  social  networking 
enterprise 
sites,  with 
software  expected  to  grow  worldwide  at  a 
rate of about 15% in 2006-20113 .  

internet-based 

It is expected that social networking tools applied in the firm will generate an Enterprise 2.0 , 
based on collaboration tools. This, together with the emergence of software as a service, will 
lead to a new generation of computer services available on demand and with much reduced 
overheads.  End  user  businesses  will  themselves  be  able  to  use  software  more  easily  and 
cheaply  into  their  own  products  and  service  thus  engendering  a  massive  productivity  leap 
across the whole economy. 6 

Rise of the Internet of Things 

The  notion  of  the  Internet  of  Things  refers  to  the 
seamless  connection  of  devices,  sensors,  objects, 
rooms,  machines,  vehicles,  etc.  through  fixed  and 
wireless  networks.  Connected  sensors,  devices  and 
tags can interact with the environment and send the 
information  to  other  objects  through  machine-to-
machine  communication.  Such  applications  have 
immediate relevance for transport through intelligent 
cars,  logistics  and  traffic  systems,  for  environment 
through  smart  buildings,  for  security  systems, 

Health monitoring 

Body-worn sensors and the Internet of Things 
facilitate  the  use  of  lightweight  systems  for 
monitoring  vital  health  parameters  like  heart 
rate,  respiration  rate  and  blood  pressure. 
Patients can simply wear monitoring systems 
while  continuing  to  go  about  their  daily 
business. This is particularly beneficial in the 
context of Europe’s ageing society with many 
people suffering chronic ailments.  

2 
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6 

Eurostat Community Survey of ICT Usage in Households and by Individuals, 2007. 
Source: Gartner Dataquest Market Databook, September 2007 Update. 
OECD DSTI/ICCP/IE(2007)4/final. 
The  Semantic  Web  was  first  proposed  by  the  inventor  of  the  World  Wide  Web,  Tim  Berners  Lee 
http://www.sciam.com/article.cfm?id=the-semantic-web. 
E.g.: Nessi: European Software Strategy, June 2008. 

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generating large efficiency gains in the wider economy. Looking ahead, the market value for 
RFID  is  expected  to  grow  5  times  worldwide  by  20187  with  the  promise  of  delivering 
innovative applications. 

Nomadic use  

Nomadic use of ICT will challenge the 
meaning of ‘at work’ 

Consumers are  increasingly  adopting a range of 
portable  devices  such  as  laptop  computers, 
PDAs,  MP3  players,  mobile  TV  sets,  GPS 
navigation devices or portable gaming consoles. 
Citizens and businesses will want to access their 
preferred  internet  services  easily  and  cheaply 
wherever they roam. This development – a Web 
2.0 on the move adapted to user needs - will not 
only  generate  many  new  business  opportunities 
and  transform  work  organisation  patterns;  there 
will  also  be  many  applications  of  social  benefit  such  as  support  to  disabled  travellers  or 
emergency workers.  

Nomadicity will make work patterns less fixed in 
time and space. This will create major challenges 
for  both  employers  and  employees.  Making 
working  life  and  education  more  sustainable  in 
terms  of  working  and  studying  from  home 
intensifies  the  need  for  realising  the  nomadicity 
that ICT can provide. 

Networks and business models are adapting to handle more data 

is 

trends 

One  immediate  consequence  of 
the  previous 
the 
explosion of data traffic over the 
net.  By  2011,  as  the  diagram 
shows, the digital information on 
networks  and  the  internet  is 
expected  to  be  10  times  greater 
than in 20068.  

transition 

Rising  data  traffic  will  promote 
the 
to  a  second-
generation  broadband  based  on 
the  Internet  Protocol  (adding 
core 
in 
intelligence 
networks) and offering significantly higher speeds (Next Generation Networks).  

the 

The increase in bandwidth is most needed in the access network. This move towards fibre-rich 
and  wireless  access  networks  is  one  of  the  most  significant  challenges  facing  European 
telecommunications in the coming years, but it is a transition that must happen if the internet 
of the future is to become a reality. 

3. 

CHALLENGES AND RESPONSES 

Meeting  the  challenges  outlined  above  requires  that  public  authorities  maintain  an 
environment  that  is  favourable  to  investment  and  innovation  by  providing  clear  and 
predictable  rules,  where  access  to  the  internet  is  kept  open  through  pro-competitive 

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IDTechEx RFID Market projections 2008 to 2018 
IDC ‘The Diverse and Exploding Digital Universe’, March 2008, IDC. 

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regulation,  where  consumers  are  empowered  through  choice  and  information,  and  where 
privacy  and  security  are  more  firmly  embedded  within  the  design  principles  of  the  future 
internet. These are policy principles that the EU also supports in international discussions on 
internet governance. 

3.1. 

Stimulating investment in high-speed broadband access 

The  EU  regulatory  framework  for  electronic  communications  has  opened  up  markets  and 
stimulated  investment.  Recent  OECD  figures  show  four  Member  States  leading  the  global 
broadband  rankings9.  Competitive  pressure  remains  the  most  effective  force  behind  the 
migration  to  broadband.  But,  as  local  access  loops  are  upgraded  to  deliver  a  high-speed 
internet over the coming years — to ‘next generation access’ — it will be crucial to keep the 
internet open and e-communications markets competitive.  

This challenge stems from the high investment cost of the civil engineering works necessary 
to build the ducts for these new fibre-rich networks, representing up to 80% of the total costs, 
and the uncertainty as to whether consumers are willing to pay a sufficient premium for the 
services  delivered  via  next  generation  networks  for  these  investments  to  be  profitable. 
Moreover, operators are not on equal footing with respect to such investment. In some cases 
incumbent  operators  may  be  able  to  re-use  their  own  ducts  in  the  streets  and  conduits  in 
buildings, so access to these ducts, where there is space, becomes an important factor in order 
to  keep  markets  open.  However,  where  completely  new  facilities  have  to  be  constructed, 
given  the  uncertainties  facing  investors,  there  is  a  need  to  make  sure  that  access  regulation 
does not take away all incentives to develop next generation access networks. For this reason, 
the Commission is preparing a Recommendation that will provide guidelines to regulators on 
how to maintain competition on the access networks while allowing investors a sufficient rate 
of return on their investments. 

At  the  same  time  public  authorities,  particularly  at  municipality  level,  can  encourage 
investment  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. They can also assist by permitting access to infrastructures, by providing 
sufficient open-access ducting on green-field sites and by mapping the existing infrastructure 
or  making  plans  for  civil  works  public.  Finally,  they  can  facilitate  coordination  between 
service providers and building owners when pre-cabling new premises.  

On the basis of current EU legislation, local authorities may impose the sharing of facilities 
on town planning and environmental grounds10, but more needs to be done to raise awareness 
and  exchange  best  practices  in  this  area,  such  as  the  stakeholder  fora  established  in  some 
Member States. Moreover, in the event of market failure, public authorities can provide direct 
funding in full respect of state-aid rules. Such funding should be limited to the provision of 
passive infrastructure (e.g. ducts, manholes or dark fibre) and on the basis of open access: i.e. 
access to the network must be available to all operators on a non-discriminatory basis. 

3.2. 

Broadband for all 

Broadband  has  already  been  taken  up  by  around  40%  of  European  households.  As  its  use 
widens  still  further  and  as  it  becomes  a  necessity  of  daily  life,  the  risks  of  information 

9 
10 

OECD December 2007. 
See Article 12 of the Framework Directive 2002/21/EC. 

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exclusion for citizens that do not have access to broadband or who cannot afford it will rise. 
Thus,  as  we  move  towards  the  internet  of  the  future,  today’s  digital  divide  may  become 
tomorrow’s  ‘info-exclusion’,  with  some  members  of  society  —  due  to  geography  or 
disparities  in  resources  and  skills  —  left  behind  and  permanently  disadvantaged.  As 
technologies  evolve,  making  sure  that  the  benefits  of  high-speed  networks  are  available  in 
rural as well as urban areas will become a policy priority. 

One of the primary aims of the Commission’s information society policy strategy, i2010, is to 
promote an inclusive information society by taking active steps towards ‘broadband for all’. 
This ‘broadband  for all’ strategy  was laid out in the March 2006 Communication ‘Bridging 
the broadband gap’11. In particular, it shows how regional and local authorities in the EU can 
mobilise the EU’s Structural and Rural Development Funds, particularly in remote and rural 
areas, not only for infrastructure but also for e-services and applications for citizens (e-health, 
e-government, e-learning and e-inclusion). In addition, the Commission will actively update 
and summarise its guidance on state-aid rules applicable to broadband projects, including for 
next-generation  access  as  case  law  develops.12  Finally,  the  Commission  will  soon  adopt  a 
Communication reviewing the scope of universal service and opening a debate on the role of 
universal service in achieving the ‘broadband for all’ objective.  

3.3. 

Keeping the internet open: competition and convergence 

Convergence  is  blurring  the  market  boundaries  between  telecoms,  consumer  electronics, 
media  services  and  internet  companies.  Telecom  and  cable  operators  are  increasingly 
bundling  TV,  internet  and  fixed  and  mobile  telephony  (‘quadruple  play’).  New  media  and 
internet  companies  are  delivering  content  for  download  or  moving  into  the  provision  of 
mobile communications content services. As these markets shift and merge, vigilance will be 
needed to make sure that competition remains effective. 

It is against this background that concerns have been raised about preserving "net neutrality" 
as  the  internet  evolves.  New  network  management  techniques  allow  traffic  prioritisation. 
Operators  may  use  these  tools  to  optimise  traffic  flows  and  to  guarantee  good  quality  of 
service  in  a  period  of  exploding  demand  and  rising  network  congestion  at  peak  times. 
However,  traffic  management  could  be  used  for  anti-competitive  practices  such  as  unfairly 
prioritising some traffic or slowing it down and, in extreme cases, blocking it.  

It  is  for  this  reason  that  the  Commission  has,  in  its  legislative  proposals  to  reform  the 
Universal Service Directive13, proposed measures to reinforce end users’ interests and rights 
to information as regards any limitations on access to lawful services and the specification of 
minimum  quality  of  service  requirements  to  prevent  degradation  of  service14.  Additionally, 
EC  competition  rules  (Articles  81  and  82  EC)  will  play  a  crucial  role  in  preventing  and 
removing anti-competitive conduct. These provisions allow tackling both abusive conduct of 
dominant network operators as well as co-ordinated conduct aimed at excluding other services 
or alternative operators from the market. 

11 
12 

13 
14 

COM(2006) 129. 
Updates are available on the Commission's dedicated website: 
http://ec.europa.eu/comm/competition/sectors/telecommunications/overview_en.html 
COM(2007) 698. 
See the revised Articles 20(5) and 22(3) of the USD. 

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Convergence  is  also  leading  to  many  different  devices  and  services  having  to  talk  to  one 
another.  For  instance,  the  proliferation  of  nomadic  services  requires  networks,  handsets, 
content  protection  and  security  applications  that  are  interoperable.  Most  of  the  time,  these 
issues  are  resolved  by  market  mechanisms:  the  win-win  of  open  interfaces  and  standards  is 
that the market can grow for all. However, and this is particularly relevant in the presence of 
network  externalities,  dominant  players  may  try  to  use  proprietary  standards  to  lock 
consumers into their products or to extract very high royalties from market players, ultimately 
slowing  innovation  and  foreclosing  market  entry by new players. EC competition rules will 
play an important role in tackling such practices. 

This is why open standards are so important, although more complex to promote with the shift 
towards  global  ICT  standards.  The  Aho  Panel’s  recent  review  of  EU-funded  ICT  research 
concludes  that  more  proactive  use  of  standardisation  policies  can  play  a  decisive  role  for 
innovation and growth in the context of the internal market, as indeed has been demonstrated 
by European leadership in mobile telephony (the GSM standard) and mobile TV (the DVB-H 
standard)15.  The  Commission  is  launching  a  policy  strategy  to  address  the  impact  of  these 
changes  on  its  policies  in  areas  like  ICT  standardisation16  and  the  development  of  pan-
European public services17. 

Content  creation  is  another  major  area  of  potential  economic  growth  that  depends  on  the 
development of the internet of the future. Policy on media content, i.e. the first generation of 
interactive content services, is embodied in the Content on line Communication18 in which the 
Commission  has  already  identified  a  number  of  issues  to  be  addressed  to  improve  the 
availability  and  distribution  of  content,  and  the  forthcoming  Recommendation  on  online 
content will address transparency and interoperability of DRMs, licensing regimes and anti-
piracy  measures.  As  Intellectual  Property  Rights  remains  a  vital  factor  in  determining 
sustainable  business  models  for  digital  content  the  Commission  has  sought  to  structure  the 
debate  on  the  long-term  future  of  copyright  policy  in  the  knowledge  economy  in  a  Green 
Paper19.  However  the  EU  approach  to  licensing  regimes  and  copyright  policy  in  the  digital 
environment does not yet fully support the emergence of new business models based on user 
created content and the shift towards "own and share" approaches to intellectual property. Nor 
is the protection of minors or the safeguarding of the integrity of information yet assured in 
the internet of the future. 

3.4. 

Founding the internet of the future 

The internet has proved to be remarkably robust and capable of scaling up to meet virtually all 
of the demands placed on it. However, the sheer scale and complexity of nomadic computing 
and the Internet of Things will place the existing internet architecture under strain. In order to 
confront these changes, the internet has to develop, building on its existing principles, to meet 
the rising demands of scalability, mobility, flexibility, security, trust and robustness.  

15 

16 
17 

18 
19 

EN 

at 

Information  Society  Research  and  Innovation:  Delivering  results  with  Sustained  Impact,  May  2008, 
http://ec.europa.eu/dgs/information_society/evaluation/data/pdf/fp6_ict_expost/ist-
available 
fp6_panel_report.pdf  
COM(2008) 133. 
See 
of 
http://ec.europa.eu/idabc/en/document/7728. 
COM(2007) 836 
GREEN PAPER - Copyright in the Knowledge Economy – COM(2008) 466 

Interoperability 

Framework 

European 

ongoing 

Review 

the 

the 

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For  example,  the  number  of  smart  radio  tags,  a  key  driver  of  the  Internet  of  Things,  is 
predicted to rise 300-fold in the next ten years from 2 billion today20. But it is not yet certain 
that there will be the spectrum resources to connect this number of tagged objects, sensors and 
other smart devices, nor that, unless the transition to IPv6 runs smoothly, there will be enough 
addresses for all these objects.  

Some steps have already been taken. Firstly, the Commission has proposed a target of 25% of 
European  internet  users  being  able  to  connect  to  the  internet  using  IPv6  by  2010,  and  has 
called  upon  Member  States,  Internet  Service  Providers,  content  and  service  providers, 
manufacturers and industrial stakeholders to begin facilitating the transition to IPv621. 

A second step is to anticipate the main challenges posed by the Internet of Things, notably its 
architecture  and  governance  model.  Governance  issues  applicable  also  for  the  Internet  of 
Things are crucial and have received attention in a global context through the World Summit 
on Information Society (WSIS) process. The Commission is launching a public consultation 
on the Internet of Things and provides background for this in the related Staff Working Paper 
issued  with  the  present  Communication.  The  discussion  will  lead  to  a  Commission 
Communication setting out a series of concrete actions in early 2009. 

Over  a  longer-term  perspective,  research  into  the  internet  of  the  future  has  already  been 
launched world wide with the GENI initiative in the US or the AKARI programme in Japan. 
The Seventh Research Framework Programme will keep Europe at the forefront of these truly 
global developments. It is now time to coordinate these efforts more coherently by creating a 
clear  technology  roadmap  for  this  area.  The  Commission  also  intends  to  consolidate  the 
fragmented research efforts relevant to the internet of the future by investigating the scope for 
a  fully  fledged  public-private  partnership  at  European  level22  to  research  key  design 
principles, including end-to-end connectivity, openness, neutrality and transparency. 

3.5. 

Privacy and security 

Privacy on the net is already a major concern. The future internet will only increase demands 
for a more robust and secure network. Anticipated privacy risks stem from user profiling, the 
use  of  identifiers  for  users  or  objects  linked  to  RFID,  unnoticed  processing,  and  linking  or 
disclosure of information, such as the re-use of personal information in social networks or the 
use of RFID for user profiling. A 2008 Eurobarometer survey23 shows that two thirds of users 
are  concerned  about  leaving  personal  information  on  the  internet.  It  is  clearly  necessary  to 
take steps now to make the internet of the future safe by design. 

The Community data protection legislation is technology-neutral and therefore well adapted 
to future challenges. However, the implementation of these rules needs constant monitoring. 
The  forthcoming  Commission  Recommendation  on  ‘RFID,  data  protection,  privacy  and 
security’ will provide guidance on the design and operation of RFID applications in a lawful, 
ethically  admissible  and  socially  and  politically  acceptable  way,  respecting  the  right  to 
privacy  and  ensuring  protection  of  personal  data  and  appropriate  information  security.  Data 
protection techniques are a first line of defence against unlawful use of the  internet. Recent 

20 
21 
22 
23 

IDTechEx (2008) — RFID Analyst. 
COM(2008) 313. 
Declaration Bled Conference - http://www.future-internet.eu/publications/bled-declaration.html. 
Flash  Eurobarometer  Series  #225  Data  Protection  in  the  European  Union  —  Citizens’  Perceptions 
Survey conducted by Directorate-General for Justice, Freedom and Security, 2008. 

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years have seen an exponential rise in both the scale and sophistication of the security threat 
posed  through  the  internet.  A  number  of  actions  to  meet  these  threats  have  been  outlined 
within the framework of the Commission anti-cyber crime policy24. The internet of the future 
is  likely  to  introduce  new  vulnerabilities.  Here,  there  are  opportunities  to  build  in  greater 
security at the architectural design stage, but a scaling up of efforts to ensure the security and 
integrity of networks and services is needed between Member States and so that Europe can 
show  international  leadership  on  the  global  stage.  To  this  end,  the  Commission  is  currently 
preparing  a  forward-looking  strategy  on  privacy  and  trust  in  the  ubiquitous  information 
society.  

4. 

CONCLUSION 

The full breadth of the social and economic potential of the internet of the future has not yet 
been  mapped  out,  but  is  already  central  to  development  strategies  in  many  regions  of  the 
global economy and is beginning to take place in Europe as part of the post-Lisbon agenda. 
This  potential  includes:  a  leap  in  productivity,  needed  to  maintain  growth  and  prosperity  in 
the face of globalised competition, an ageing workforce and costs of achieving environmental 
sustainability; and many societal innovations which can keep the quality of life of Europeans 
on the rise.  

Unlocking  this  potential  however  requires  responses  to  make  sure  that  the  internet  of  the 
future develops into a strong platform for European innovation and growth. The fundamental 
requirements  are  an  internet  that  is  high  speed  and  ubiquitously  available  to  all;  that  is 
internationally open and competitive; and that it is secure and safe to use, with transparent and 
effective  governance  procedures.  These  fundamental  conditions  of  accessibility,  openness, 
transparency  and  security  form  the  basis  of  the  Commission's  short  term  agenda  for  the 
internet of the future which can be summarised in the following six action points:  

(1) 

The  construction  of  high-speed  internet  infrastructures  that  are  open  to  competition 
and  give  consumers  real  choices.  The  Commission  believes  that  the  current  pro-
competitive approach provides the best way to achieve these objectives. Accordingly, 
in addition to its 2007 proposals for reform of the e-communications framework,  

•  the Commission will issue guidelines on the application of the e-communications 
rules  in  Member  States  in  a  Recommendation  on  Next  Generation  Access 
Networks in early 2009. 

(2) 

Promoting access for all to a good-quality internet connection at an affordable price. 
As part of the implementation of its policy to ‘Bridge the Broadband Gap’: 

•  The Commission will actively update and summarize its practice on state-aid rules 

applicable to broadband projects.  

•  The  Commission  will,  as  part  of  its  review  of  the  scope  of  Universal  Service, 
launch in autumn 2008 a debate on the role of Universal Service in achieving 
the target of broadband for all. 

24 

COM(2007) 267. 

EN 

10 

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(3) 

Keeping the internet open to competition, innovation and consumer choice, avoiding 
users being locked to services and products. Proposals to this end have been included 
in the 2007 e-Communication framework reform and these are expected to be adopted 
in 2009.  

•  The  Commission  will  continue  to  apply  EC  competition  rules  to  practices 

harming competition and consumer choice over the internet.  

•  The  Commission  will  adopt  a  White  Paper  on  ICT  standardisation  in  early 

2009.  

(4) 

Launching  a  debate  on  the  design  and  development  of  the  internet  of  the  future.  To 
this end, 

•  The  Commission  will  implement  the  Action  Plan  as  set  out  in  the  related 
Communication to foster the introduction of IPv625 and will assess progress made 
by Member States and industry by 2010; 

•  The Commission is launching a public debate on the architecture and governance 
of the Internet of Things, which will lead to a Communication in early 2009; 

•  The Commission will also examine the possibility of creating an EU-level public-
private partnership on research on the internet of the future and will report in early 
2010. 

(5) 

Providing clear guidelines on the implementation of existing rules on data protection 
and  a  coherent  strategy  for  a  secure  internet  of  the  future,  so  that  Europe  can  better 
meet future security threats and lead international debate. To this end,  

•  The  Commission  will  adopt  a  Recommendation  on  the  application  of  general 

data protection rules for the use of RFID systems in autumn 2008; 

•  A Communication on Privacy and Trust in the ubiquitous information society 

is under preparation. 

(6) 

Taking into account the crucial role played by international policy, regulatory dialogue 
and research cooperation in all these developments, which is why 

•  the  Commission  will  publish  a  Communication  on  the  external  dimension  of 

information society policies by the end of 2008.  

Overall, the transition to the internet of the future can only happen when high-speed internet 
access is available to all. Therefore, broadband strategies will and must remain a strong focus 
for policy makers. This is why the Commission proposed a ‘Broadband Performance Index’ 
in  its  Annual  Progress  Report  on  the  Lisbon  Strategy26,  which  was  endorsed  by  the  Spring 
European  Council.  The  Index  reflects  the  needs  for  speed,  coverage,  affordable  prices, 
innovation,  high-quality  services  and  a  favourable  socio-economic  context.  The  ‘Broadband 
Performance  Index’  is  therefore  a  composite  indicator  that  combines  these  different 

25 
26 

COM(2008) 313. 
COM(2007) 803. 

EN 

11 

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dimensions and enables Member States to benchmark performance and understand better the 
areas where more policy attention is needed27.  

The broadband performance results confirm that the leading countries are consistently those 
which  have  successfully  put  in  place  a  policy  mix  based  on  competition,  innovation  and 
inclusion.  These  principles  are  actively  supported  by  European  policies:  regulation  for 
telecoms  is  an  example  of  best  practice  in  encouraging  competition,  lower  prices  and 
investment  in  networks;  it  is  complemented  by  comprehensive  ‘broadband  for  all’  policies 
and demand-side policies that stimulate the development and use of advanced services.  

BPI 

Socio-economic context

Take up of advanced services

Speeds

BB price

BB competition*coverage

BB coverage in rural areas

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

BG CY RO PL

EL

LT

SK

EE

IE

LV

HU

IT

CZ

PT MT

SI

LU

ES

DE

FI

AT

BE

FR NO UK DK

NL

SE

27 

See the Staff Working Paper accompanying this Communication for detailed indicators and results. 

EN 

12 

   EN