Kroes: Coordinated policy across EU crucial to develop common market for digital content

Neelie Kroes, Vice-President of the European Commission and responsible for the Digital Agenda presented her view on how to advance investments in digital networks in Europe, at the ETNO Financial Times 2011 CEO SUMMIT in Brussels, last Monday.

Commissioner Kroes believes Europe needs to focus efforts in sectors that provide direct sources of growth. Information and communication technology is one of the sectors with the greatest potential to create jobs, increase productivity growth and boost competitiveness. But for all this, a sound infrastructure is essential. “Unfortunately, there is no agreement on how to foster the deployment of such networks,” Mrs. Kroes said. “For the time being, telecom companies are hesitant to commit significant funds to fibre roll-out. It would indeed be difficult to build new fibre networks competing with cheap parallel copper networks. That is why, in the context of the public consultation launched today, I am very interested to explore possible business models which could create the right incentives for telecom operators – in particular, incumbents – to invest in next generation networks and thus align the interests of investors and long-term financing providers.”

Kroes said that the Commission intends to establish a predictable regulatory environment and invest money to further the EU internet infrastructure. “We will favour competition while recognising the cost of investment. We will make funds available for sharing risks and stretching maturities. And we will make a major contribution to financing the networks needed for a truly digital Europe.”

“Wireless is a major component in the policy mix to get every European Digital. Correct spectrum policies will help the roll-out of next generation mobile networks and that is why I am fighting for spectrum management in the EU to be flexible, competitive and coordinated. I want to remove barriers to the digital single market to make it easier and more rewarding to develop content. Also, I will take steps to improve confidence, including initiatives on data protection, child safety and internet security.” Mrs. Kroes believes the creative industries will benefit from an open internet. “You know my philosophy: the best way to deliver an open internet is through competitive markets. But for competition to work properly, customers need to make informed choices, and to know exactly what service they are getting. Also, they need to be able to switch operators. New telecoms rules that came into force last May specifically require operators to be transparent.”

Kroes was particularly critical about the Dutch approach to the desired level of openness and transparency: “I have asked BEREC, where all Member States' telecom regulators are represented, to give me facts and figures on transparency, blocking, throttling and switching. It is very important that we wait for the results before acting. And if we do need to act, we must do so in a coordinated way across Europe. I regret very much that The Netherlands seems to be moving unilaterally on this issue. We must act on the basis of facts, not passion; acting quickly and without reflection can be counterproductive. For example, requiring operators to provide only "full internet" could kill innovative new offers. Even worse, it could mean higher prices for those consumers with more limited needs who were ready to accept a cheaper, limited package.” Last summer, the Dutch parliament amended the Telecommunications Act to include mandated net neutrality. The controversial amendments are currently pending before the Senate.

The conclusions of BEREC on this topic will be something to watch very closely, as Commissioner Kroes will use BEREC’s report to construe her view on IT policy and upcoming investment decisions on the internet infrastructure.

Source: EU Rapid Press releases, Speech/11/623