The European Union approach to transparent and effective digital governance ITU Asia-Pacific Regional Development Forum 16 May 2012, Bangkok

ICT Counsellor - Delegation to Singapore 2 Why a governance? What kind of governance? Which tools? Optimal use of digital tools by people and business Increase quality of life and inclusion Increase business opportunities, jobs (2.6 for 1 job replacement rate in EU) Governance of networks (fixed and mobile broadband regulation, net neutrality, global internet governance) Governance of digital content (creative content, eHealth, eGov, etc.) Tools: regulation, support programmes, masterplans, etc.

ICT Counsellor - Delegation to Singapore 3 European Union current digital targets Instrument: Digital Agenda for Europe (2010) = key benchmarks + policy initiatives (EU27 = 500 mill inhabit.) Targets: 50% of EU households with subscription > 100 Mbps (2020); 100% coverage >30 Mbps; 50% citizens buying online and 20% cross-border (2015); 1/3 SMEs buying online; 50% citizens using eGov and 25% filling administrative forms online Very high speed BB EU wide = 0.5 to 1.5% additional economic growth

ICT Counsellor - Delegation to Singapore 4 Implementation of the Digital Agenda for Europe eGov objectives can be achieved E-commerce increasing but cross-border transactions still a problem (dispute resolution, segmented copyright, etc.) Very High Speed BB coverage and subscription a challenge (cost of >100 Mbps objective = 200 to 300 billion Euro) Effective governance required

ICT Counsellor - Delegation to Singapore 5 EU digital governance – NGN (1) Background: uncertain business case for very high speed BB; legacy networks vs. new entrants EU approach: 1/ encourage competition (infrastructure based or access) ex-ante control of wholesale access price (prevent price squeeze, allow new entrants) 2/ reduce risks: allow co-investment, risk sharing – additional EU toolkit in preparation: duct atlas, mandated access to duct, one-stop-shop for right of way, obligation for new buildings to be > 100 Mbps

ICT Counsellor - Delegation to Singapore 6 EU digital governance – NGN (2) the fibre conendrum (no one-size fits all solution for very high speed BB) and the difficult regulatory fine–tuning Rural areas 1/ subsidies (EU funds for BB in rural regions = 3 bill Euro ) 2/ financial instruments such as project bonds, loan guarantees, etc.

ICT Counsellor - Delegation to Singapore 7 EU digital governance – mobile broadband (1) Make spectrum available for mobile broadband a top EU priority 1/ digital dividend Switch-of in 22 EU countries by end 2012 (16 countries already). 5 last countries until 2015 Transition to DVB-T2 (in use or trial in 10 EU countries) Digital dividend spectrum in Europe: 800Mhz band. WBB licenses already awarded in 6 EU countries (notably Germany, Spain, France). Debate on the 700Mhz band – probably shared use WBB + BC – final decision at WRC-2015

ICT Counsellor - Delegation to Singapore 8 EU digital governance – mobile broadband (2) 2/ EU Radio Spectrum Policy Programme Democratically adopted; giving legal certainty and medium-term policy guidance (5y programme) harmonised GHz, GHz and 900/1800 MHz bands open for WBB by end 2012 in all 27 EU countries WBB allowed in the 800 MHz band on 1 st January 2013 in all EU countries First ever EU-wide inventory of spectrum use in the 400 MHz to 6 GHz range at least 1200 MHz of suitable spectrum to be identified by 2015 for mobile broadband services

ICT Counsellor - Delegation to Singapore 9 EU digital governance – mobile broadband (3) 3/ clear demand for BB spectrum LTE: 20 MNO in EU countries mid-2011 offering LTE services. Importance of license obligations stimulating competition (coverage requirements, MVNO access, spectrum caps) Unlicensed spectrum – huge needs ahead! Wi-Fi networks in Europe today: 20 times as much internet traffic as cellular networks; more than 50% of all smartphone traffic routed over Wi-Fi + new applications (smart-meters, IoT and other M2M apps) Shared use of spectrum – EU to propose policy / legal approach: new authorisation schemes defining sharing conditions, solutions for spectrum holders to leverage their spectrum asset by sharing, etc.

ICT Counsellor - Delegation to Singapore 10 EU digital governance – mobile broadband (4) A key time for governments to make the right choices: broadcasting vs. wireless broadband; issuance of 3G / 4G licenses (more competition + lower prices, better service, innovation) Cross- border data roaming (EU to add obligations from July 2012: retail price cap. Followed by decoupling of roaming services

ICT Counsellor - Delegation to Singapore 11 EU digital governance – content and services The net neutrality debate (network management / prioritization in content delivery) – EU has taken a balanced approach (non discrimination but…) so far – Work in progress Consumer confidence a key for digital services take-up 1/ compulsory notification of data breaches + info on cookies and behavioral advertising 2/ cloud is a new challenge

ICT Counsellor - Delegation to Singapore 12 Key principles for an efficient digital governance (1) Democratic decision-making (Parliament, public consultations, etc.) Truly independent NRAs 1/ from Government and political parties 2/ from operators and private interests 3/ avoid populism Ex-ante regulation (wholesale, sometimes retail) needed to balance incumbents political connections and market dominance) Open, transparent and timely procedures for spectrum assignments

ICT Counsellor - Delegation to Singapore 13 Key principles for an efficient digital governance (2) Internet governance – needs for improvement International cooperation / exchange of best practices increasingly useful EU Single Market experience useful for ASEAN internal market objectives (ASEAN ICT Masterplan implementation supported by EU READI Facility )

ICT Counsellor - Delegation to Singapore 14 Conclusion - Recommendations Any broadband strategy today should give a large space to mobile Take-up largely depends on price: competition is the key to success, protection of incumbents the recipe for failure Take-up also depends on trust: a good e- privacy legal framework cannot not be avoided anymore Ubiquitous society requires huge investments: need to attract private investors, including foreign investors

ICT Counsellor - Delegation to Singapore 15 Thank you!