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eEurope 2005 plan to focus on broadband
Tuesday, May 28 2002
by Matthew Clark


According to reports, the European Commission will encourage EU governments to
use regional aid or other financial incentives to boost broadband Internet
rollout. Later this week the European Commission is expected to launch its "eEurope
2005" report, which will establish a recommended framework on how the 15-nation
union can foster information technology. The rollout of high-speed broadband
Internet access is reportedly at the top of the agenda.

"Member states in cooperation with the Commission should support, where
necessary, deployment (of broadband) in less favoured areas and where possible
may use structural funds and/or financial incentives," a draft document of the
eEurope 2005 report says, according to Reuters.

Although the EU actively supports IT projects in the Union, the move would mark
the first time the EU has encouraged member states to use these structural funds
for Internet-related infrastructure. EU structural funds account for roughly 33
percent of the EUR100 billion EU budget. Typically they are used to help with
economic development in poorer regions of the EU.

The draft report says that aid should be designed to help create broadband
networks in areas where it is not commercially viable, such as remote and
underdeveloped regions.

The plan as a whole, the first of its kind to impact the entire European Union,
is expected to be endorsed by EU leaders when they meet at a summit in Seville,
Spain, in June. Last March in Barcelona, EU leaders invited the Commission to
draw up the comprehensive eEurope 2005 Action Plan. The new plan comes in the
wake of the eEurope 2002 Action Plan and is set to be released on Wednesday.

Speaking at the European Cable Communications Association (ECCA) Conference on
Monday, Erkki Liikanen, Member of the European Commission responsible for
Enterprise and the Information Society, hinted at what the document might say
when it is released.

Liikanen said that overall, eEurope 2005 will aim to promote widespread broadband
use, not only by reducing barriers to broadband deployment but also by helping to
ensure interesting content is available so that there will be sufficient demand
among consumers.

Subsequently the plan will encourage the rollout of e-government across Europe.
It will also promote e-learning and set targets for EU schools to be
broadband-connected over the next there years. A third goal of the scheme will be
an e-health initiative, Liikanen said, to improve medical assistance to all
patients regardless of their geographical location. The final push for compelling
content is for e-business, he added.

"To increase productivity and improve the quality of life of Europeans, we must
ensure that the use of broadband translates effectively into economic activity.
For this, it is essential to change mindsets, re-organise businesses, and bring
these technologies into everybody's daily life," the commissioner said in his
speech.

Liikanen went on to say that the EC is also looking at broadband technologies
beyond ADSL and cable modems, which are set to remain the dominant platforms in
the short term. Fixed wireless, 3G mobile, and satellite Internet were dealt
with, as well as interactive digital television.

"To sum up, the EU recognises the importance of exploiting the broadband
potential. Its new eEurope 2005 Action Plan will aim to stimulate the development
of applications and content, and infrastructure deployment. It will foremost aim
at reducing uncertainty for the industry by creating a favourable environment for
investment," Liikanen added.

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