3 THE I2010 STRATEGY
(30857)
12600/09
+ ADDs 1-3
COM(09) 390
| Commission Communication: Europe's Digital Competitiveness Report — Main achievements of the i2010 strategy 2005-2009
Commission Staff Working Papers
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| Legal base | —
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| Document originated | 4 August 2009
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| Deposited in Parliament |
13 August 2009 |
| Department | Department for Business, Innovation and Skills
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| Basis of consideration |
EM of 28 August 2009 |
| Previous Committee Report |
None; but see (29638) 8696/08: HC 16-xxiii (2007-08), chapter 13 (4 June 2008)
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| To be discussed in Council
| To be determined |
| Committee's assessment | Politically important
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| Committee's decision | Retained under scrutiny; further information requested
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Background
3.1 The i2010 Strategy was launched in June 2005 as 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.
3.2 The Commission sought 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 proposed three priorities to be achieved
by 2010:
— creating
a Single European Information Space, via a regulatory environment
that supported innovation and competition, thereby enabling both
citizens and businesses to take advantage of the economic benefits
arising from the convergence of digitalised technologies;
— strengthening innovation and investment
in information and communications technologies (ICT) research,
funded via the 7th R&D Framework Programme and the Competitiveness
and Innovation Programme, and including measures such as the Lead
Market Initiative; and
— achieving an inclusive European information
and media society, including measures such the Commission's e-Inclusion
and Safer Use of the Internet initiatives.[14]
3.3 Commission Communication 8696/08, "Preparing
Europe's digital future: i2010 Mid-Term Review", which we
considered in June 2008, identified four strategically important
issues for competitiveness and ICT take-up in Europe:
— the
need to shift up a gear to lead the transition to next-generation
networks[15] whilst ensuring
efforts continue to reduce the digital divide within Europe;
— greater exploitation of Europe's main
economic asset — the largest consumer market in the developed
world. Despite the ubiquitous presence of the Internet, more needed
to be done to create a Single Market for the digital economy;
— in most Member States expenditure on
ICT research was still below target; Member States needed to pool
resources by coordinating research and innovation efforts;
— with the ever increasing use of the Internet
in daily life, safeguards for EU citizens which matched developments
in technology and the market needed to be introduced, without
impinging on the significant opportunities offered by online social
and economic activity.
3.4 As the then Minister (Baroness Vadera) noted,
although the Communication did not have any direct policy implications
for the UK, many of the proposed actions could affect existing
programmes and initiatives. She said that the UK would work with
the Commission to exchange ideas and shape its recommendations
(non binding) on Next Generation Networks, which would feed into
work of the then-recently announced Broadband Review.[16]
She also supported the Commission's proposals for a more consistent
application of the regulatory framework for electronic communications,
where negotiations were currently underway in the Council Working
Group and the European Parliament. The UK would also play an active
part in the Commission's forthcoming proposals on the Universal
Services Obligation. The then Minister was "encouraging the
UK's private and public sector to participate in the European
Commission's innovation and research programmes". The UK
had played an important role in developing the Commission's Lead
Market Initiative, would continue to work with the Commission
and other Member States to develop appropriate action plans for
each market and was seeking input directly from UK stakeholders.
The UK was also looking to shape the review of the ePrivacy Directive
"so as to safeguard the privacy of our citizens whilst not
creating barriers that will hinder their access to the vast opportunities
that online social and economic activity offers", and would
be using the Byron Report[17]
as an exemplar of how to approach online protection and as evidence
and analysis in the EU policy making process. While there had
been no formal consultation on this Communication, UK stakeholders
had been give the opportunity to provide comments on its content.
3.5 As well as recalling the general comments it
had made in relation to many similar Commission ICT-related documents
about the importance of maintaining the basis of 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 — the Committee looked forward to
scrutinising any such further proposals and — given the
importance of the subject matter — in the meantime cleared
the Communication with a Report to the House.[18]
The Commission Communication
3.6 The Communication begins by listing what it regards
as the main achievements of i2010 from 2005 to 2010:
— More
and more Europeans are online. The number of regular internet
users has increased from 43% in 2005 to 56% in 2008; most of them
use the internet almost daily and with high-speed internet access.
Europe has become the world leader in broadband internet. With
114 million subscribers;
— High rates of broadband connectivity
have translated into higher usage of advanced services. 80 % of
regular internet users engage in increasingly interactive activities;
— The market for mobile phones has exceeded
100% penetration — increasing from 84% of the EU population
in 2004 to 119% in 2009;
— Europe has made fast progress in the
supply and use of the 20 benchmarked online public services. The
supply of fully available services to citizens has increased to
50% in 2007 (27% in 2004) and for businesses to 70% (58% in 2004).
One third of European citizens and almost 70% of businesses in
the EU use of eGovernment services;
— EU-funded ICT research has played a key
role in Europe's major industrial development, such as in micro-
and nano-electronics, in healthcare and the EU's road safety agenda;
— ICT policies have been increasingly mainstreamed.
Many Member States now have integrated national ICT strategies
with objectives similar to those of the i2010 initiative eg Digital
Britain and France Numérique 2012.
3.7 The Communication then looks in more detail at
the achievements of i2010 in relations to the three pillars:
— Pillar
1 — Boost the single market for business and users:
the Commission suggests that the following actions have boosted
the opening up of EU markets, enhanced regulatory consistency,
created a level playing field for Europe's telecom operators industry
and consumers and fostered a more consistent approach to spectrum
and potential use of the digital dividend:
- The recent mobile phone Roaming
Regulations;
- Reform of the eCommunications regulatory framework
(which is about to enter conciliation with the European Parliament,
and if it passes this process, will be adopted under the Swedish
Presidency);
- updated rules for the Audio Visual sector;
- Commission support for films under the EU MEDIA
programme.
— Pillar
2 — Stimulate Information and Communications Technologies
(ICT) research and innovation: The
Communication suggests that the following actions have boosted
ICT R&D:
- Europe's largest ever budget
for ICT research and Innovation, which amounted to €10bn;
- The launch of various public/private partnerships,
including the Artemis and Eniac initiatives in embedded computing
systems, and the Ambient Assisted living initiative which provides
ICT solutions for Europe's elderly people;
- the beginning of work on a public/private partnership
that could underpin the future internet offering faster data transfer,
more IP addresses etc.
— Pillar
3 — Ensure that all citizens benefit from Europe's lead
in ICT: The Communication
suggests that i2010 included innovations that put citizens interests
at the core of policy-making and that its actions boosted the
well-being of Europe's citizens:
- various eHealth initiatives
under i2010 have improved the health of European citizens and
brought productivity benefits to Europe's healthcare systems,
e.g., two major initiatives launched in 2008 to facilitate patient
access to telemedicine services (delivery of health care services
where distance is a critical factor) and to address cross border
interoperability of electronic patient record systems.
- with regards to eGovernment services, the Commission
suggests that though 50% of EU Government services are now available
online, interoperability is still a challenge. To address these
and other issues, in 2006, the Commission and Member States adopted
a five year plan which it is hoped will boost take up of eGovernment
services;
- ICT to improve the lives of all EU citizens (eInclusion)
has been one of the corner stones of the i2010 project since 2005;
initiatives include boosting the rights of the disabled, the elderly
and the socially disadvantaged;
- Quality of Life initiatives include the Ambient
Living Initiative, the Intelligent Car Initiative and Europeana,
a European funded online library.
IMPACT OF I2010 ON OTHER MEMBER STATES
3.8 The Communication notes that i2010 has been implemented
by all Member States through national strategies, with almost
all closely following the goals of i2010. Initial strategies focused
heavily on making broadband available to all their citizens, whilst
the current focus is on higher speed broadband, e.g., Finland's
push for 1 Mps as a universal service obligation by 2010 and Portugal's
focus on optical fibre.
LOOKING AHEAD
3.9 Finally, the Communication looks at future policy
challenges. The Commission suggests that Europe is at risk of
losing its competitive edge in the ICT field — for example
it lags behind Korea and Japan in high speed broadband using fibre.
The Commission accordingly suggests a new digital agenda, to create
a world class telecoms infrastructure and unlock the full potential
of the Internet for all of the EU citizens. The Commission recalls
that the December 2008 European Council called for a European
plan for Innovation, where ICT would be a key component, and has
now launched an online public consultation on nine key areas that
it believes will help form the next digital agenda:
— Unleashing
ICT as a driver of economic recovery and as a lead contributor
to the Lisbon growth and jobs agenda;
— Increasing the role of ICT in the transition
to a more sustainable low-carbon economy;
— Upping Europe's performance in ICT research
and innovation;
— Creating a 100% connected economy through
a high-speed and open internet for all;
— Consolidating the online single market;
— Promoting users' creativity;
— Reinforcing the EU's position as a key
player in the international ICT arena;
— Making modern and efficient public services
available and accessible to all;
— Using ICT to improve the quality of life
of EU citizens.
3.10 The Communication concludes that i2010 has laid
the building blocks for a modern ICT-enabled society, with broadband
is now firmly on the political agenda. But it sees Europe as facing
"important decisions about how to build a seamlessly connected
digital economy poised for recovery", and notes that "over
the coming years the internet is expected to become an essential
service, crucial for us to participate fully in society."
In order to "seize these opportunities, the Commission calls
on the Member States and on stakeholders to actively cooperate
in the months ahead until early 2010 to draft a new digital agenda
so that Europe can emerge from the current crisis with a stronger,
more competitive and more open digital economy, driving European
growth and innovation."
The Government's view
3.11 In his Explanatory Memorandum of 28 August 2009,
the Minister for Further Education, Skills, Apprenticeships and
Consumer Affairs (Kevin Brennan) says that the UK "has been
totally supportive of the i2010 programme since its inception
in 2005 and welcomes this final Communication", and that
"it is now widely recognized that ICT has contributed to
Europe's economic performance over the past ten years and i2010
has done much to focus EU Governments' minds on this now critical
part of any countries economic "armoury"."
3.12 The Minister notes that the UK is working with
the Commission and other Member States to shape the successor
to the i2010 programme and welcomes the ideas contained in the
Communication, which he says will supplement proposals that he
expects to see from the Swedish Presidency before the end of September.
He further notes that the Department for Business, Innovation
and Skills will consult "stakeholders" and other parts
of the Government in drawing up the UK response to the Commission
consultation, which "will reflect on [sic] proposals enumerated
in the Digital Britain White Paper,[19]
such as the importance of broadband as a universal service; the
need for investment in enhanced broadband services and encouraging
the take up of Digital Audio Broadcast (DAB)".
Conclusion
3.13 Although the Communication contains no legislative
proposals, we are reporting it to the House because of the importance
of the subject matter. What matters now is the way forward, which
we presume will at some stage be set out in a new Commission document.
3.14 Before then, however, we think that the House
will be interested in the Government's response to this Communication.
We accordingly ask the Minister to provide the Committee with
a summary when it is available, and also details of the Swedish
Presidency proposals that he anticipates, and his views on how
he sees the successor to i2010 developing.
3.15 In the meantime we shall retain the document
under scrutiny.
14 For full details, see http://ec.europa.eu/information_society/eeurope/i2010/index_en.htm. Back
15
The next-generation network seamlessly blends the public switched
telephone network (PSTN) and the public switched data network
(PSDN), creating a single multiservice network. Rather than large,
centralized, proprietary switch infrastructures, a new network
architecture - one that will blend the PSTN and PSDN - is emerging;
instead of networks based on large, centralized, expensive mainframes
and "dumb" terminals, distributed networks are made
up of low-cost, "smart" desktop computers linked together,
permitting applications to be pushed closer to the end-user, reducing
overall cost while greatly enhancing system flexibility and functionality.
For full background, see http://www.iec.org/online/tutorials/next_gen/index.html
. Back
16
On 22 February 2008, the then Department of Business, Enterprise
and Regulatory Reform announced a review of the future of broadband
internet, which was to be carried out by the former chief executive
of telecoms firm Cable & Wireless, Francesco Caio, and which
was expected to be completed this autumn. Back
17
"Safer Children in a Digital World: the report of the Byron
Review", carried out by Dr Tanya Byron, and published in
March 2008. Back
18
See headnote: (29638) 8696/08: HC 16-xxiii (2007-08), chapter
13 (4 June 2008). Back
19
Available at http://www.culture.gov.uk/images/publications/digitalbritain-finalreport-jun09.pdf
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