Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council amending Regulations (EU) No 1316/2013 and (EU) No 283/2014 as regards the promotion of Internet connectivity in local communities’ (COM(2016) 589 final — 2016/0287 (COD))
Date: 2017-01-26
Institutions: European Economic and Social Committee
Subjects: EU aid, Internet, financial aid, project of common interest, trans-European network, transmission network








C_2017125EN.01006901.xml










21.4.2017   


EN


Official Journal of the European Union


C 125/69





Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the European Parliament and of the Council amending Regulations (EU) No 1316/2013 and (EU) No 283/2014 as regards the promotion of Internet connectivity in local communities’
(COM(2016) 589 final — 2016/0287 (COD))
(2017/C 125/10)






Rapporteur working alone:



Emilio FATOVIC











Consultation


European Parliament, 6.10.2016
Council, 25.10.2016




Legal basis


Article 172 of the Treaty on the Functioning of the European Union




Section responsible


Transport, Energy, Infrastructure and the Information Society




Adopted in section


11.1.2017




Adopted at plenary


26.1.2017




Plenary session No


522




Outcome of vote
(for/against/abstentions)


195/1/0




1.   Conclusions and recommendations









1.1


The EESC welcomes the Commission’s Wifi4EU initiative. This scheme is aimed at rolling out free internet access in public places and will deliver benefits both in terms of accessibility, primarily for the most disadvantaged social groups, and in terms of economic growth at local level, particularly in the areas of public services, health, trade and tourism.












1.2


The Committee welcomes the fact that one of its proposals, reiterated a number of times in previous opinions, has finally become an integral part of the EU’s digitisation process (1). This stems from the conviction that internet access is a fundamental right of every citizen, as well as an essential tool for social inclusion and economic growth.












1.3


The EESC would point out that the rapid progress of digital technology is likely to render obsolete all of the technologies installed within a short time. The Committee would therefore call on the Commission to establish goals for social as well as technological development, so as to make the Wifi4EU initiative more dynamic, long-term and sustainable.












1.4


The EESC supports the idea of drawing on the EDUROAM project to establish Wifi4EU, and proposes integrating the two processes so as to ensure that all citizens have a single digital identity throughout Europe, as already provided for under the eIDAS Regulation. This would also have a considerable impact in terms of strengthening the sense of European citizenship and overcoming 
digital poverty
.












1.5


The EESC considers Wifi4EU to be a strategic project and feels that its EUR 120 million budget is totally inadequate to cover the needs of the whole of Europe. The Committee therefore calls for a substantial increase in the funds allocated so that we can aspire to free, very high speed WiFi access by 2025 in all public places throughout Europe, and thus to implement the scheme on the basis of ‘Quality Wifi4all’. In this regard, it would be important to ensure greater integration between all of the existing public WiFi services so as to make the most of the available resources and avoid waste.












1.6


The EESC considers the criteria outlined for the allocation of funds (first come, first served basis and the geographical criterion) to be unclear and contradictory. The Committee would recommend taking into account the population and geographical size of the countries concerned, and establishing in advance the maximum amount of funding to be allocated to each country, so that all regions can access it in a balanced way.












1.7


The Committee would propose earmarking 20 % of the budget for areas that are less developed economically and digitally, with particular emphasis on islands and on mountainous, border and peripheral areas, as well as on areas that have been exposed to natural disasters, in order to invest the resources where they are most needed. The Committee recommends that the criteria for inclusion on the register of suppliers should not discriminate on the basis of company size.












1.8


The EESC supports the principle of allocating the funding to delivering free internet access where it does not currently exist. However, as part of its strategic vision, the Committee calls on the Commission to supplement the public initiative with public-private partnerships.












1.9


The EESC calls for a high-quality free WiFi service to be deployed over the period 2017-2020, with a minimum connection speed of 100 megabit/s, but anticipating from the outset that higher speeds will already have to be delivered in the medium term. There are three reasons for this:






(a)


to bring Wifi4EU into line with the Gigabit Society communication;










(b)


because a simple ADSL connection does not ensure a connection of satisfactory quality for dozens of people at the same time, given its technical limitations; and










(c)


because a free public service does not necessarily have to be of poor quality.
















1.10


The EESC endorses the adoption of red-tape free and streamlined arrangements for accessing the funding. However, it calls on the Commission to set at a minimum of 3 years the obligation to provide the service, subject to repayment of the funds received.




2.   Introduction and background









2.1


Proposal COM(2016) 589 amending Regulations (EU) No 1316/2013 and (EU) No 283/2014 as regards the promotion of internet connectivity in local communities forms part of a package of measures on telecommunications adopted by the European Commission on 13 September 2016, which also includes the following:






—


a communication on Connectivity for a competitive digital single market — towards a European Gigabit society (COM(2016) 587),










—


an action plan on 5G for Europe (COM(2016) 588),










—


a proposal for a directive establishing a new European electronic communications code (COM(2016) 590), and










—


a proposal for a regulation aimed at strengthening the existing Body of European Regulators for Electronic Communications (BEREC), turning it into an agency, while keeping its name (COM(2016) 591).
















2.2


The EESC has drawn up an opinion for each proposal but with a single coordination structure, to ensure that the individual documents are harmonised and consistent in their vision and content (this current opinion ties in closely with the following opinions: TEN/611 European Gigabit Society, TEN/612 European Electronic Communications Code, TEN/613 Body of European Regulators of Electronic Communications (BEREC) and TEN/615 5G for Europe: An action plan) and also in keeping with the EESC’s previous opinions on this subject.




3.   Summary of the Commission proposal









3.1


The proposed regulation, which launches the ‘Wifi4EU’ initiative, is part of a package of measures that come under the umbrella of the European Gigabit Society communication. The Wifi4EU scheme is designed to fund the roll-out of hotspots providing free internet access in public places (libraries, squares, parks, hospitals and public buildings in general), based on and complementing the successful EDUROAM initiative which already provides this service in universities and other third-level institutions.












3.2


The Commission has allocated EUR 120 million and estimates that some 6 000 to 8 000 local authorities will come on board over the period 2017-2020. Once the scheme is rolled out, it envisages between 40 and 50 million connections per day. The rather modest budget frames the initiative as a pilot project.












3.3


The intended beneficiaries of the scheme are local authorities that do not yet provide such a service. Projects may not exceed a budget of EUR 60 000, and the funding will cover up to 100 % of the purchase and installation costs, while the local authority will pay for the internet subscription and maintenance of the equipment.












3.4


The local authorities will be encouraged to develop and promote their own free digital services in areas such as e-government, e-health and e-tourism.












3.5


The proposed scheme, which is limited to public places, is designed not to clash with or distort the free market of digital traffic, but rather to reinforce it through the deployment of digital technology in less developed areas.












3.6


The Commission proposal sets out three key criteria for the allocation of funding:






(a)


the scheme is only open to local communities that do not yet provide this service;










(b)


the funds are to be directly disbursed on a first come, first served basis;










(c)


the funds are to be allocated in a geographically balanced way.
















3.7


The proposal provides for a simplified model for accessing the funding and reporting on the activity carried out through a series of vouchers that will subsequently be used to pay the companies entrusted with installing the equipment. The Commission will be able to monitor in real time the proper functioning of the hotspots in order to take action and carry out checks if necessary.




4.   General comments









4.1


The EESC welcomes the Commission’s Wifi4EU initiative. This scheme is aimed at rolling out internet access in public places and will deliver benefits both in terms of accessibility (2), primarily for the most disadvantaged social groups experiencing 
digital poverty

 (3), and in terms of economic growth at local level, particularly in the areas of health, public services, trade and tourism (4).












4.2


The Committee welcomes the fact that one of its proposals, reiterated a number of times in previous opinions, has finally become an integral part of the EU’s digitisation process (5). This stems from the conviction that internet access is a fundamental right of every citizen, as well as a tool for social inclusion and economic growth.












4.3


The EESC calls on the Commission to envisage the Wifi4EU initiative having a lasting impact in the beneficiary areas. Given the rapid progress of digital technology, all of the equipment installed is likely to become obsolete within a short space of time. For this reason, the Committee recommends including the pilot project in a broader, more sustainable strategic vision that places an emphasis on social objectives ahead of the purely technological.












4.4


The Committee feels that this proposal does not sufficiently explain how this initiative will be integrated into the EU’s digitisation process, which is currently rather hit-and-miss. The situation ranges from areas that do not yet have an ADSL connection to areas that already have ultra wideband and are even successfully piloting speeds of 1 Gigabit/second. The EESC hopes that the initiative sets ambitious objectives in terms of the quality of the service provided.












4.5


The EESC points out that the proposal is not supported by a proper in-depth feasibility study. This is demonstrated by the fact that the data provided by the Commission concerning the scheme’s potential impact are too general, not adequately supported by a socio-economic assessment and probably overestimated due to its modest budget.












4.6


The EESC regrets that the budget proposed is limited to EUR 120 million, relegating such an important initiative to a mere pilot project. The Committee would therefore like to see the budget for this scheme increased significantly in order to raise the status of Wifi4EU to a structural and strategic measure, with measurable objectives, which is an integral part of the Gigabit Society vision and a means of achieving the digital development targets set for 2025. The EESC stresses the need for the Gigabit Society programme to include the target of 100 % free WiFi in all public places by 2025.












4.6.1


The EESC points out that over EUR 9 billion were originally earmarked under the Connecting Europe Facility (CEF) for the development of digital networks and services, and that this was subsequently reduced to just over EUR 1 billion. The Committee would reiterate its disappointment at this reduction in the funding made available for a priority that is crucial to Europe’s competitiveness, and hopes that funds can be recovered from the budget headings.




5.   Specific comments









5.1


The Committee notes that the criteria set out for the allocation of funding are not sufficiently fleshed out in the proposal and fears that these may contradict each other. Specifically, it would point out that the first come, first served principle is liable to favour authorities that are already digitised and thus reduce the funding available to States and local authorities that need it most.












5.2


When allocating the funds, the EESC would recommend taking into account the population and geographical size of the countries concerned, and establishing in advance the maximum amount of funding to be allocated to each country, so that all regions can access it in a balanced way.












5.2.1


The EESC hopes that the register to which interested companies will have to sign up, and from which local authorities will select suppliers for the installation of the infrastructure, does not discriminate on the basis of company size.












5.3


The Committee would call for 20 % of the budget to be earmarked for areas that are less developed economically and digitally, with particular emphasis on islands, and on mountainous, border and peripheral areas, as well as on areas that have been exposed to natural disasters, in order to invest the resources where they are most needed (6).












5.4


The EESC supports the principle of allocating the funding to delivering free internet access where it does not currently exist. It is aware, however, of both the urgency and the complexity of the technological and economic effort required to roll out this service throughout Europe. Therefore, as part of its strategic vision, the EESC calls on the Commission to supplement the public initiative with public-private partnerships.












5.5


The EESC calls for a high-quality free WiFi service to be deployed over the period 2017-2020, with a minimum connection speed of 100 megabit/s (ultra wideband), but anticipating from the outset that higher speeds will have to be delivered in the medium term. There are three reasons for this:






(a)


to bring Wifi4EU into line with the Gigabit Society communication, which aims to deploy ultra-fast fibre connections (1 Gigabit/second) at all sites in the EU where public services are provided (public administrations, hospitals, libraries, etc.) by 2025;










(b)


because a simple ADSL connection cannot ensure a connection of satisfactory quality for dozens of people at the same time, given its technical limitations (latency, connection stability and maximum bandwidth);










(c)


because the concept of a free public service should not have to mean a poor quality service.
















5.6


While the EESC supports the idea of drawing on the EDUROAM project to establish Wifi4EU, it considers that these initiatives need to be made complementary from the outset, beginning by ensuring network access for all citizens anywhere in Europe using a single digital identity. In this regard, the Committee proposes redeploying the provisions already established by the eIDAS Regulation (7) on digital identity, which has been proven to provide guarantees for data protection and security against distorted use of the service (terrorism). This would also have a considerable impact in terms of strengthening the sense of European citizenship.












5.7


The EESC endorses the adoption of red-tape free and streamlined arrangements for accessing the funding. The Committee notes, however, that the Commission’s proposal does not provide for a minimum period in which local authority beneficiaries are obliged to provide the Wi-Fi access free of charge (subject to repayment of the funds received). The EESC recommends setting at a minimum of 3 years this obligation to provide the service.












5.8


The Commission should further encourage the Member States to promote the roll-out of free WiFi in all public places. This would be of particular value in small towns and in areas that are of little interest to the market, where the big commercial operators are unlikely to make significant investments in digital infrastructure, with a view to the more harmonious development of the EU, offering more opportunities and quality of life for all.












5.9


The EESC reiterates its call for the Commission to take the demographic aspect into account. Many older people are still, in fact, digitally illiterate. The Committee therefore recommends that Wifi4EU include the creation of a single, multilingual and user-friendly access point. The Committee also recommends that local authorities in receipt of funding provide training for older people, in particular, in order to encourage greater internet use, guarantee the initiative’s success, combat social exclusion and bolster local communities.





Brussels, 26 January 2017.


The President of the European Economic and Social Committee

Georges DASSIS




(1)  OJ C 161, 6.6.2013, p. 8.

(2)  OJ C 389, 21.10.2016, p. 28.

(3)  OJ C 451, 16.12.2014, p. 25.

(4)  OJ C 318, 29.10.2011, p. 9.

(5)  See footnote 1.

(6)  See footnote 1.

(7)  OJ L 257, 28.8.2014, p. 73.