EU Broadband Policy and the Satellite Voucher Scheme

Transcription

1 EU Broadband Policy and the Satellite Voucher Scheme Stakeholder Conference on the EU Strategy for the Alpine Region, Milan 1-2 December 2014 Dr. Robert Henkel Senior Policy Officer European Commission DG CONNECT Broadband Policy Unit (CNECT B5)

2 Part 1 EU Broadband Policy and the way forward

3 How will the BB targets be met? Internet access in Europe is mostly provided by private network operators under a competitive regulatory framework and driven by commercial interests. However, in many areas private sector investment plans fall short of the ambitions of the Digital Agenda broadband targets, in particular for very high speeds and in rural areas. Because of its strategic importance, the EU is supporting the upgrade and deployment of new broadband networks in several ways: Regulatory initiatives; Policy initiatives; Financial support

4 Cost reduction Directive Adoption of broadband Cost Reduction Directive by EP in first reading on 3 April 2014; transposition 1 January 2016; Cost reduction Directive sets measures to reduce the cost of deploying high-speed electronic communications networks; An important piece of legislation for broadband deployment accross Europe.

5 BB Cost Reduction: objectives Better use of existing infrastructure and more transparency, incl. cross-utility Improved coordination of civil engineering Simplify permit granting process Reduce costs of broadband rollout by 20 to 30% and make it easier Buildings ready for access to high-speed internet

6 Public financing Where the market cannot deliver, local, regional, and national authorities will have to close the financing gap. Main financing instruments: Connecting Europe Facility (CEF): Some complementary EU support by means of financial instruments; : ICT a priority in the European Structural and Investment Funds. 6

7 Joint EU/EIB support CEF financial support cannot take the form of a grant and can only be allocated via the EIB; CEF support takes the form of credit enhancement; concept is to take part of the investment risk, thus improving risk profile for other investors/providers of financing; Credit enhancement can be done through loans, guarantees or project bonds; CEF credit enhancement can also be combined with the ESIFs.

8 EU financing: cohesion funds ESIF funding for broadband Last budgetary period ( ): c. 2.3bn allocated to broadband, c. 14.5bn to ICT; Further resources from Rural Development Funds (c. 688m ); : ICT is one of four "concentration themes" in the European Regional Development Fund (ERDF) negotiations ongoing: provisional budget in the area of 17 bn EUR for ICT, around 6 bn of which are for broadband (EAFRD+ERDF); Towards substantial increase in ICT and broadband spending. 8

9 Broadband investment guide Published on 22 September - update of the guide to broadband investment published in 2011; Aims to help local, regional and national authorities to develop long-term broadband development plans; Provides a list of choices when choosing a type of infrastructure, an investment model, a financial model and the financing tools available; Suggests how to involve citizens, collaborate with other broadband developers, neighbouring municipalities and regions, and how to monitor and evaluate broadband investment.

10 European Broadband Portal Provides information by country on: broadband strategies and policies, state of broadband development, broadband financial instruments, public authorities and bodies responsible for broadband; Shows broadband development best practices by country, including all relevant information on the best practices mentioned.

11 Part 2 Satellite Voucher Scheme

12 Quality of Satellite Broadband Availability of 2-way telecommunications services via satellite with speed of at least 6 Mbps up to 22 Mbps download and at least 1 Mbps up to 7 Mbps upload, throughout the entire territory covered by the measure; Global traffic volume allowance of at least 3 GB/month up to 50 GB/month; The whole process is quick because it doesn t require infrastructure build.

13 The Aim of the Satellite Voucher Scheme and beneficiaries Financing of users' access (e.g. supply of a modem and an antenna including installation); Final Recipient: End User (Household, SMEs, Farmers); Final beneficiary: Satellite broadband resellers (service providers).

14 The method of the Voucher Scheme A Public Authority offers a voucher to householders or companies who cannot get basic broadband; The voucher can be used to pay a service provider for supply of a modem and an antenna including installation; The voucher stimulates take-up and addresses the broadband availability problem; The service provider installs the service and then presents the voucher to the Public Authority for payment.

15 3 Step-Model: Multi Provider Approach (MPA) Characteristics: Competitive Selection Process: Call-off procedure; Pro Reduces the amount of time required for administrative procedures; Allows the final recipients to choose the best suitable satellite broadband solution on the market/offer evolution ; Cons Careful definition of the administrative process shall take place, duly considering funds expenditure/ state aid rules.

16 Step 1: Competitive Selection Process Public Authority identifies the eligible area Mapping and analysis of the coverage Advertises the scheme to potential end-users via radio, TV or press Applies for ERDF /EARDF funding Public Authority: call-off procedure selection of satellite broadband service providers with characteristics in line with the scheme. Agreement Public Authority and Resellers the reporting and monitoring system in accordance with the state aid rules approved within the relevant legislation.

17 Step 2: From End-User point of view Public Authority provides Voucher for eligible end-user serial number identification total cost for the user terminal including installation electronically managed and controlled by the PAs information identifying the end-user End-User Voucher data Service provider chosen within the selected list declaration of eligibility 120 days validity End user gives the voucher to the service provider Public Authority payment to the Service Provider after the submission of a detailed report (that includes the vouchers) of each user terminal installed

18 Step 3: Financial management The end user will give the voucher to the service provider After the installation of the ground equipment and the signature of the contract for the internet service The Service provider will be paid by the Public Authority after the submission of the regular report that includes: User identification code A statement of delivery, installation and activation for the user equipment, The delivery address References of the service contract for a term of at least 24 months The Public Authorities will monitor the implementation of this part of the Scheme and will ensure the aid is reimbursed in the event of non-compliance by the service provider or the end user.

19 Compliance with EU State Aid Vouchers count as Demand stimulation ; Covered by de-minimis state aid; regulations; Need to be in broadband white areas ; Voucher Schemes already successfully implemented in many EU Member States.

20 For more information: On your next satellite provider: On the Satellite Voucher Scheme: How Public Authorities can implement a voucher scheme? On the SABER project which had developted the Satellite Voucher Scheme

21 Thank you for your attention