Policy makers must do more to strengthen the ICT sector, says Liikanen
The European Commission had adopted a communication in the run up to the spring European Council calling on policy makers to do more to encourage investment in information and communication technologies (ICTs). The communication, entitled 'Connecting Europe at high speed: recent developments in the sector of electronic communications', notes that the economic outlook for the ICT sector has improved in recent months, following the sharp downturn in 2000. However, it warns that the creation of a favourable environment for the spread of ICTs remains an important responsibility for policy makers. 'If the Union is to maximise the impact of the information society as the engine for growth, productivity and jobs, we have to create the right climate for further investment,' said EU Commissioner for Enterprise and the Information Society, Erkki Liikanen. The communication highlights four key areas where it says sustained political action is needed to improve the efficient use of ICTs, and remove barriers to further investment. These priorities are: addressing any outstanding regulatory challenges, increasing broadband coverage in under served areas, stimulating demand for broadband, and successfully launching third generation mobile communications. The Commission's primary legislative concern relates to the new regulatory framework for electronic communications. Late or incorrect transposition of the framework in certain EU countries is holding back competition and creating uncertainty, it says, and in addition, the new rules must be applied consistently by national regulatory authorities. On the issue of broadband Internet coverage in Europe, the communication welcomes the fact that the number of such connections doubled in the 12 months up until October 2003 to almost 20 million. However, it warns that there are areas of the EU that risk being 'placed in the slow lane of the information society' due to insufficient demand to justify the rollout of broadband. The Commission demands that Member States that have not yet put in place a national broadband strategy do so with the minimum delay, and offers the possibility that 'EU funding may play a role alongside action at a national, regional or local level' to facilitate broadband rollout to under served areas. Ensuring widespread access to broadband is only half the challenge, however. The communication notes that while the majority of households in the EU have access to high speed connections, only a fraction choose to use them. Experience has shown the importance of effective network based competition to drive down prices and promote innovative online services, says the Commission, and Member States can further stimulate demand by putting more government services like health and education online. The final priority identified is ensuring the successful launch of third generation (3G) mobile communications. The Commission accepts that as the key challenges to achieving this goal cover a wide variety of areas, it will set out the proposed approach in a further communication later in the year. It also promises to work with the relevant stakeholders to identify strategic research priorities, and bring them together within the EU's Framework Programmes for research to address issues such as interoperability. Commissioner Liikanen concluded by stressing that: 'The regulatory framework and technologies are now there, but to exploit their full potential what we need now is a clear and renewed political commitment at the highest level to making eEurope a reality.'