Pernilla Baralt EU kommissionen i Sverige
Europa 2020
THE DIGITAL AGENDA 1. Create a new and stable broadband regulatory environment. 2. New public digital service infrastructures through Connecting Europe Facility loans 3. Launch Grand Coalition on Digital Skills and Jobs 4. Propose EU cyber-security strategy and Directive 5. Update EU's Copyright Framework 6. Accelerate cloud computing through public sector buying power 7. Launch new electronics industrial strategy an "Airbus of Chips"
Even as the Internet economy grows, it remains US dominated
Per capita, South Korea is 100x more connected than Germany 25000 20000 + 10 percentage points broadband take up = 100 billion to the EU economy. 22 800 15000 10 800 10000 6 300 5000 4 700 0 179 246 583 Fixed fibre broadband subscriptions in selected countries (thousands) Source: OECD, June 2012 977 Germany France UK Sweden EU US S. Korea Japan
Europe: a 4G desert Only 25% of EU citizens can access 4G in their hometowns, dropping to 4% for the rural population. over 90% of US citizens have 4G access Lagos has 4G, Brussels does not. Angola, Botswana and Namibia have 4G. Cyprus, Ireland, Malta have none. Source: Wireless Intelligence, 2012
What's wrong in Europe? This is not a Single Market, Customers* 1400 Major Operators 3 Regulatory Frameworks / Regulators 1 Customers* Major Operators 330 6 Regulatory Frameworks / Regulators Customers* 645 Fixed Telecom Operators 1200 Virtual Mobile Network Operators Cable Operators 1 Mobile Network Operators Regulatory Frameworks / Regulators 28 100 1500 200 * Figures in millions
Fragmented market imposes unnecessary business costs Over half the EU economy's value comes from businesses with more than one site. Half of them buy communications across multiple countries 69% would rather have a single supplier But 46% can't find one Benefit to fixing this: nearly 90 bn per year Source: WIK / INTUG 2013
It's not just Telcos - the whole economy needs the ICT sector fixed. Construction 2% Hospitality, Hotels and Wholesale and Leisure Distribution 3% 3% Energy and Utilities 2% Healthcare 4% Retail Trade 3% Natural Resources 1% Educational Services 1% Consumer 33% Transportation 5% ICT spending by industry segment 2012 Manufacturing 8% Services 8% Financial Services 10% Source: OCDE, Internet Economy Outlook 2012 Government Telecom 8% 9%
Source: Cisco; IDC More traffic = higher revenues? Of course! But not in Europe
Call costs vary by more than 300% across the EU. 119 97 Cost of an international mobile call (cents / minute) 75 65 46,5 Eurostat food and drink index 48 35 35 35 Portugal / Vodafone Spain / Movistar Italy / TIM France / Orange Belgium / Belgacom UK / Vodafone Germany / T Mobile Germany / O2 Hungary / Telenor
Kiruna Malmo is 53 times closer to Copenhagen than it is to Kiruna. So why is it 45x more expensive to send an e-mail from your mobile across the Oresund than all the way to Kiruna? Malmo Copenhagen Cheaper by reindeer?
Our solution, at a glance NEEDS THE PROBLEM THE SOLUTION Telecoms companies To invest and adapt To be able to think big Booming demand strains networks; yet falling revenues do not enable investment Telcos are stuck in national markets Few economies of scale No operator works in all EU MS Too much red tape to work across MS Stable, competitive framework for investment Chance to compete with pan-european ambition Adapt business models for innovative services Authorisations that cross borders Consistent inputs (spectrum, fixed access) Avoid fragmented sectoral rules on services Network remedies more consistent x-border Citizens Better, faster broadband Fairer prices 100 million EU homes without fast broadband coverage US, S Kor, Japan have 88% of world's 4G: EU has just 6% Call costs vary 774% between MS Data roaming 45x domestic price Surcharge for intra-eu, x-border calls Stable investment framework A stronger sector more able to invest A connected continent with consistent protections, fair prices Mobile packages valid across the EU - no roaming charges Businesses New comms services A better deal Promising new IP-based services (cloud, videoconferencing) BUT hard to guarantee quality & security end-to-end Multi-site companies 50% of EU value added 69% want a single comms supplier; 46% can rarely find one Pan-EU services that run on pan-eu networks Quality guarantees & x-border interconnections A more dynamic, competitive market able to offer innovative business services including across borders
But security problems cost real money In one MS (UK) 96% of large organisations; and 76% of businesses had a security breach in the last year Average cost of worst breach 15k- 30k to SMEs 110-250k large organisations Source: PWC Information security breaches survey 2012
And trust is key to making every European digital Eurostat 2010
A Connected Continent means Economic recovery 5% on GDP = 1500 per person 2 million jobs 110 billion GDP growth / year 300 billion saving on public services Real benefits for citizens More choice & more telecoms providers End to unfair roaming charges A full open Internet Easier & more efficient public services More productive businesses Savings from pan-eu telecoms providers A secure cloud Top-quality videoconferencing World-class digital infrastructure + 5-6% productivity A stronger telecoms sector Consistent rules, regulators & remedies Cross-border business boost Stable, consistent investment climate Brighter prospects for SMEs & Start-ups Operators can't block or throttle bright ideas A home market that is fully connected Wireless services & gadgets that work perfectly across the EU
Håll er uppdaterade: www.europa.eu/digital-agenda #connected continent Twitter: Neelie Kroes och Ryan Heath
Tack för att ni lyssnat Hör gärna av er! pernilla.baralt@ec.europa.eu