Committee of Regions: targets for broadband coverage
Reaching the 2020 European Union targets for broadband coverage in rural and remote areas requires innovative ways of financing to bridge the estimated funding gap of at least 13 billion euros, according to a study presented at the European Committee of the Regions (CoR) on 20 April.
The study commissioned by CoR's Commission for Social Policy, Education, Employment, Research and Culture (SEDEC) focuses on obstacles that broadband deployment initiatives often face in rural, remote or sparsely populated areas, which are unattractive for private investors. The CoR has warned against the creation of digital divide between Europe's urban and more rural areas, pointing out the unquestionable socio-economic benefits of investment in ICT infrastructure.
"While business clearly benefits from a generalised growth potential brought about by the availability of broadband, impact has been noted also from the social perspective on several critical spheres of an individual’s life, from education and lifelong learning to health and independent living", says SEDEC Chair Yoomi Renström (SE/PES).
Local and regional authorities across Europe act as financing entities, risk takers, or facilitators of broadband deployment initiatives, often in partnership with the private sector. The study provides examples of good practices where the critical mass for demand has been increased by aggregation of public authorities and by community-based initiatives. It also suggests that equity crowdfunding could be used to raise funds for broadband deployment, citing an initiative in rural Nottinghamshire which aims to provide fibre optic connection to the two villages of Fiskerton and Morton.
Other recommendations relate to the creation of publicly-sponsored venture capital, to the involvement of non-conventional broadband investors and to the maximisation of EU i funding contribution opportunities. To this end, a support scheme for securing financing for ICT infrastructure deployment in remote, rural and sparsely populated areas from the European Fund for Strategic Investments (EFSI) is suggested.
Information and communication technologies can also contribute to reversing trends of social and economic decline and depopulation of rural areas. The SEDEC commission adopted a draft opinion which calls for a coordinated and integrated response from the EU to demographic challenges in the form of a comprehensive European strategy covering all policy areas, not least ICT infrastructure, affirmed rapporteur Juan Vicente Herrera (ES/EPP), President of the Castille and Leon region in Spain.
"By minimising the digital divide through a comprehensive expansion of the broadband network, we effectively promote equivalent living conditions in urban and rural areas", confirms Helma Kuhn-Theis (DE/EPP), Member of Weiskirchen Municipal Council and CoR rapporteur on the Digital Single Market.
Contact:
Lauri Ouvinen
Tel. +32 22822063