13 The i2010 Strategy
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8108/07
COM(07) 146 + ADDs 1-3
| Commission Communication: i2010 — Annual Information Society Report 2007
Commission Staff Working Papers
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| Legal base | — |
| Document originated | 30 March 2007
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| Deposited in Parliament | 4 April 2007
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| Department | Trade and Industry
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| Basis of consideration | EM of 8 May 2007
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| Previous Committee Report | None; but see HC 41-xxi (2006-07) paras 9, 10 and 11 (9 May 2007)
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| To be discussed in Council | 7 June 2007 Telecoms Council
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| Committee's assessment | Politically important
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| Committee's decision | Cleared, but further information requested
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Background
13.1 The European Commission launched the i2010 Strategy in June
2005. i2010 is the European Commission's new strategic framework
laying out broad policy guidelines for the information society
and the media — "a new, integrated policy is to encourage
knowledge and innovation with a view to boosting growth and creating
more better-quality jobs". It forms part of the revised Lisbon
Strategy.
13.2 The Commission is seeking to coordinate the actions undertaken
by Member States to facilitate digital convergence and to respond
to the challenges associated with the information society. The
Commission proposes three priorities to be achieved by 2010: creating
a Single European Information Space, strengthening innovation
and investment in information and communications technologies
(ICT) research and achieving an inclusive European information
and media society.[35]
The Commission Communication
13.3 The Communication, and the staff working papers,
constitute the Commission's second annual progress report towards
i2010 objectives and its proposals for ICT policy over the next
12 months. It notes that the main indicators of progress are moving
in the right direction; users are embracing new services brought
about by convergence; the sales growth of system software and
e-Business applications; and the progress made by the public sector
in realising efficiency gains from ICT. The focus is on preparing
the ground for the extensive mid-term i2010 review in 2008, as
well as identifying actions to be undertaken at pan-European and
Member State level to maximise the contribution of ICT to European
productivity and competitiveness. It is helpfully summarised in
the 8 May 2007 Explanatory Memorandum by the Minister of State
for Industry and the Regions (Margaret Hodge).
I2010 AND THE LISBON STRATEGY
13.4 The Minister notes that the Communication emphasises
the key role ICT can play in improving competitiveness and productivity,
and reports a significant improvement in the coverage ICT policy
received in the Lisbon self assessment reports of Member States.
Europeans citizens have developed greater confidence in using
ICT. Past investment in ICT is beginning to transform the EU into
a knowledge-based economy, driven primarily by developments and
expansion in the software market. Digital convergence (where a
variety of fixed and mobile platforms can seamlessly exchange
signals, regardless of type, e.g. voice, video, data, with one
another using both wired and wireless technology) has enabled
access to new services, transforming the content market and leading
to a surge of user-generated content.
13.5 The public sector is also realising efficiency
gains from offering e-enabled government services to meet the
needs of citizens and businesses, which the Minister says was
outlined by Sir David Varney in his report "Service transformation:
A better service for citizens and businesses, a better deal for
the taxpayer".[36]
The third Commission staff working paper shows the UK ranked second
(out of 28 countries) based on the percentage of public services
available for citizens on line. However, the Minister notes that
the UK does not feature as strongly on the percentage of public
services offered online for business (20 out of 28 countries),
although it is acknowledged that the index values used for business
comparisons cannot be directly compared as different wording was
used in different Member States.
THE SINGLE EUROPEAN INFORMATION SPACE
13.6 The Communication identifies the major challenge
as ensuring the regulatory environment does not hinder convergence,
but supports innovation, competition, and the resulting economic
benefits of convergence. The central element of this work is the
Commission's review of the Electronic Communications Framework.
This will include a common approach to the use of spectrum, look
to address concerns regarding the protection of privacy (for example
with Radio Frequency Identification Devices), and will lead into
a Green Paper on Universal Service. In audiovisual policy, the
Commission indicates it will look at media pluralism (business
size, ownership etc), media literacy, as well as supporting the
take up of mobile television.
13.7 Referring to consumer confidence, the Commission
highlights the proposed Regulation on International Mobile Roaming
tariffs and the Commission review of the Consumer Protection acquis.
The Commission will also explore policies that will encourage
the development of high quality and innovative online content,
follow up their security strategy with a forthcoming communication
on cybercrime, and evaluate the role of the European Network and
Information Security Agency.
INNOVATION AND INVESTMENT IN RESEARCH
13.8 The Commission notes that the ICT sector is
one of the highest spending sectors in terms of investment in
research and development (R&D), thereby making a substantial
contribution to the Lisbon target for 3% of GDP to be dedicated
to R&D. ICT also receives the most support from the Seventh
Framework Programme for Research (FP7), which will total €9
billion from 2007 to 2013. To further assist innovation, the Communication
outlines proposals to review standardisation policy and address
the potential of pre-commercial procurement. It also indicates
a commitment to respond to the proposals of the ICT taskforce
(an industry led study undertaken as part of European Industry
Policy) to review e-business policies, continue to look at initiatives
to promote ICT take up and design a long term e-skills strategy.
INCLUSION, BETTER PUBLIC SERVICES AND QUALITY OF
LIFE
13.9 e-inclusion reflects the need to ensure all
citizens can actively participate in the digital world. The objectives
of the Riga Ministerial Declaration will be taken forward through
an e-Inclusion initiative in 2008, and a review of e-accessibility.
The scope is likely to include giving consideration to possible
regulatory measures in these areas. The Commission is also proposing
to review measures on digital literacy, and confirms it will continue
its support for bringing high speed broadband access to all.
13.10 Regarding better public services, the Communication
focuses on e-Health and e-Government, where it highlights the
role of Member States in taking forward the e-government Action
Plan and the e-Health portal. In both these strands of work the
Commission is encouraging a strong degree of best practice exchange.
Although the Communication also acknowledges the wider European
dimension to deliver true cross boarder interoperable services
for all European citizens. The Minister says that she awaits the
revised interoperability framework later this year.
13.11 Innovation-friendly, interoperable e-Health
markets are actions the Commission will look to take forward with
Member States. The Communication highlights the pilot projects
under the Competitiveness and Innovation Programme (CIP) to test
delivery capability in areas such as e-identification, secure
document transmission, e-procurement, e-participation, and emergency
patient data to support unscheduled cross-border care and electronic
prescribing. These pilots are designed to test the technological
and practical obstacles to pan European interoperability, and
do not represent policy decisions.
13.12 Under "quality of life", the Communication
covers the benefits technological innovation can bring to European
citizens. The focus is on the ageing population, where a separate
Commission Communication on ICT and Ageing is expected. In addition,
the Communication highlights initiatives under cultural diversity,
intelligent cars and climate change, all of which have been designed
to highlight the possibilities of ICT and its ability to deliver
wider objectives.
FUTURE TRENDS AND CHALLENGES
13.13 The Communication identifies the need to achieve
greater integration between ICT policies and Lisbon priorities,
and the need to inform policy makers of the potential ICT has
to extend the economic and social benefits of their policy objectives.
Specifically, the Communication identifies three issues to be
addressed over the next twelve months:
— a
new wave of innovation in networks and the internet: including
investment in higher bandwidth, net neutrality, spectrum availability,
and security;
— a
user's perspective on innovation: including copyright protection,
privacy, lack of interoperability, transparency on contractual
terms and pricing, complexity to consumers, and the inefficiencies
of litigation; and
— improving
the framework conditions: including pursuing the single European
information space by tackling barriers that hinder the provision
of pan European on-line services.
CONCLUSION
13.14 The Communication proposes a public consultation,
which in addition to working with the i2010 High Level Group of
Member State representatives, will serve to develop this thinking
and shape the preparation for the mid-term review. In addition,
the Commission is considering discussions on ITC at the Spring
2008 European Council.
The Government's view
13.15 The Minister says that the Government recognises
the economic benefits that ICT can bring to productivity and competitiveness,
especially in response to globalisation, and in delivering its
wider growth and employment objectives, and supports the desire
to maximise the contribution of the ICT sector to Lisbon, including
to public service delivery. She continues as follows
"We agree with the majority of views expressed
in this Communication. We do, however, have some concerns regarding
the proposal for a coordinated management of spectrum after the
digital dividend. We are also concerned at the proposal to support
the take up of mobile television, as we believe that the 'market'
will be a better judge of technologies and spectrum allocations
than policy makers. Ofcom is consulting on a proposal that the
spectrum released by switchover should be auctioned on an open
basis during 2008/09.
"Within the Single European Information Space,
our focus has remained on the three key Commission legislative
proposals. On the first two (the review of the Electronic Communications
Regulatory Framework and the review of the Television without
Frontiers Directives) our priority has been to ensure that any
regulatory intervention promotes the development of open and competitive
ICT markets. On the third (proposed Regulation on International
Roaming Tariffs) we have been working closely with France and
other Member States to mitigate any un-intended consequences whilst
promoting lower prices. These matters have all been dealt with
in three separate scrutiny processes.
"The majority of i2010 e-Health work is focussed
on cross-border healthcare falling within the Commission's competency
of supporting free movement of people, goods, and services. However,
several of these policy areas overlap with issues of national
competence, such as health care and public service delivery. Although
there are benefits from learning through best practice and peer
review (where the UK plays an active role), it is important to
remember that our involvement does not constitute UK policy development,
which is either a matter for Ministers or the devolved administrations.
"On Innovation and R&D we are working with
the Commission to ensure that European funding programmes underpin
our ICT policy priorities. The large scale pilots in the areas
of e-government and e-health are designed for industry and users
to test compatibility and functionality across borders, so that
this information can feed into any future policy debates. The
pilots have limited life span and contain no mandatory participation
requirements.
"On e-Inclusion the UK has been taking a leading
role, and supports the Commission's focus on the overarching economic
argument".
13.16 The Minister notes that the Communication will
be discussed at the June Telecoms Council meeting, after which
there will be a consultation process leading up to the i2010 Mid-Term
Review.
Conclusions
13.17 The crucial role of ICT in securing Europe's
future prosperity, and increasingly in the daily life of Europe's
citizens, is fully set out in the Communication, and underlined
by the variety of initiatives that the Commission is proposing,
in addition to the upcoming review of the regulatory framework.
As the Minister notes, and as we have observed in our recent consideration
of other Commission Communications (on European electronic communications
regulations and markets, radio spectrum management and radio frequency
identification),[37]
it will be vital to maintain the basis of the success so far —
the centrality of the market, the maximum involvement of all stakeholders
in the policy process and the maintenance of the Commission's
role to one where it is both legally appropriate and adds genuine
value.
13.18 The Minister has identified a number of
immediate concerns, at least one of which she has expressed previously,
viz. her concerns about the proposal for a coordinated management
of spectrum after the digital dividend. We have already asked
her for more information about their nature. We should also like
her to report after the Telecoms Council meeting on the discussion
there, and particularly on which of her concerns she raised and
what the conclusions were.
13.19 In the meantime, we clear the Communication,
which we are reporting to the House because of the importance
of the subject matter.
35 For full details, see http://europa.eu/scadplus/leg/en/cha/c11328.htm Back
36
http://www.hm-treasury.gov.uk/pre_budget_report/prebud_pbr06/other_docs/prebud_pbr06_varney.cfm Back
37
(28369) 6280/07: (28475) 7544/07 + ADD 1 and (28519) 8098/07 +
ADDS 1-2: HC 41-xxi (2006-07) paras 9, 10 and 11 (9 May 2007). Back
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