Space

3.3 Bridging the "digital divide"

Satellite technologies do not only allow the achievement of the public policy goals presented in the previous two sections, they also constitute an infrastructure for the delivery of electronic communications services. This market is a commercial one characterised by an intense competition between operators and technologies. In the European Union, electronic communications infrastructures and services are subject to the new regulatory framework, which is based on a technologically neutral approach.

Through its eEurope 2005 Action Plan,[1] endorsed by the Sevilla European Council in June 2002, the Union has set itself the objective of providing a favourable environment for private investment and for the creation of new jobs, to boost productivity, to modernise public services and to give everyone the opportunity to participate in the global information society. To achieve this objective, widespread availability and usage of broadband and high-speed internet throughout the European Union needs to be established.

Still, a large number of European households living in remote areas  as many as 14 million  do not have a realistic perspective of achieving access to high speed internet before many years. This constitutes a serious obstacle to making the benefits of the information society available to all citizens and firms in the European Union.

The prospects for many of the less developed partners of the EU, especially in Africa, are also a concern. Bridging the digital divide at a global level to ensure that all parts of the world can reap the benefits from the information society is at the heart of the World Summit on the information society that will be held in Geneva in December 2003 and Tunis in 2005.

The EU Member States are committed to putting in place broadband national strategies by the end of 2003; in some, there is a dynamic emerging market for the provision of broadband access in remote and rural areas. However, the picture remains fragmented and it may be difficult for local or regional communities in different countries to consider on their own solutions of more global coverage which could generate broader economies of scale. They should, therefore, be encouraged to compare their needs to see whether common solutions can be shared.

Satellite technologies may constitute appropriate solutions, especially for rural, peripheral and island regions, but their adoption should be based on cost effectiveness. The enlargement of the Union puts these opportunities into a new perspective.

Broadband access can be provided through a variety of networks and platforms such as xDSL offered over telephone lines, cable modem over cable networks, fibre optics, satellites, wireless solutions and powerline communications. These technologies can be substitutes, competing with each other, but also complementing and completing and co-existing with each other according to local geographical needs.

In those areas where the market forces alone do not suffice, public funding whether coming from the Community through the Structural funds or from Member States sources, can be made available provided certain conditions are met. These are described in the guidelines on the use of the Structural funds in support of the deployment of broadband access that the European Commission has released in July 2003.[2]

The resulting technological choice will largely depend on the local conditions and on the needed investment (e.g. some schools may only require funding for the connections to the final user, others may even need it for the backhaul).

Recommended Actions

Within the framework of the mid-term review of the eEurope 2005 Action Plan in early 2004, the European Commission will propose to set up a Forum on the Digital Divide. This Forum will bring together all stakeholders in the area of the Information Society and electronic communications, including the satellite constituency and ESA, and will analyse how to bridge the digital divide. This action will imply among others:

• defining the public and users needs to be addressed under a digital divide initiative covering the enlarged Union;
• carrying out a cost/benefit analysis of the various technological options including the space-based ones;
• assessing how the various options fit within the national strategies to be provided by the EU Member States by the end of 2003;
• drawing lessons and identifying best practices from running initiatives.

The Commission will report on the Forums outcome in the Summer 2004.In line with the Forums work, the Commission should encourage the setting up of innovative, pan-European, large-scale pilot projects.

[1] COM (2002) 263: eEurope 2005: An information society for all

[2] SEC (2003) 895: Guidelines on criteria and modalities of implementation of Structural funds in support of electronic communications