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A Digital Agenda for Europe Ken Ducatel Head of Unit DG Information Society & Media European Commission Regions for Economic Change 21 May 2010

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A Digital Agenda for Europe Ken Ducatel Head of Unit DG Information Society & Media European Commission Regions for Economic Change 21 May 2010 Slide 2 The 7 challenges of the Digital Agenda Fragmented digital markets Lack of interoperability Rising cybercrime and low trust in networks Lack of investment in networks Insufficient research and innovation efforts Lack of digital literacy and skills Fragmented answers to societal challenges 2 Slide 3 Virtuous cycle of the digital economy Slide 4 1. Fragmented digital markets (i) Slide 5 5 1. Fragmented digital markets (ii) Source: Eurostat, ICT surveys. Reference year: 2008 Estimated value of online transactions: more than 100 billion Online Purchasing Cross-border Online Purchasing Only 8% of online shoppers online buy from another country 60% of cross-border internet shopping orders fail due to technical or legal reasons Slide 6 2. Lack of interoperability Weaknesses in standard setting, public procurement and coordination between public authorities means that ICT products and services do not work together as they should. Internet is the best example of the power of technical interoperability Europe needs to catch up with fast-moving technology markets Slide 7 3. Rising cybercrime and risk of low trust in networks 80 to 98 % of all circulating e-mail traffic are spam Cyber attacks increasing and often motivated by financial or even political purposes Europeans will not embrace technology they do not trust Slide 8 4. Lack of investment in networks Figure 4: Fibre to the Home (FTTH) penetration in July 2009 Slide 9 5. Insufficient research and innovation efforts Total ICT R&D spending in billion (2007) Slide 10 Regular Internet use in EU regions (2009) Slide 11 11 6. Lack of digital literacy skills 1/3 rd Europeans never used the internet Income, age and education all play a role Slide 12 Digital skills distribution in EU regions (2009) Slide 13 7. Missed opportunities in addressing societal challenges Almost 20% of electricity consumption worldwide is used for lighting. About 70% of this (14% of total emissions) can be saved by using ICT-controlled low energy lighting MS are adopting diverging and non interoperable e-Health solutions Complexity in the licensing system hinders digitisation of Europes recent cultural heritage In 2009, only 38% of EU citizens used the internet for accessing eGovernment services, compared to 72% of businesses. Slide 14 The Digital Agenda and Regions 1.ICTs as a general platform for innnovation and economic development 2.ICTs for tackling societal issues - ageing, health care delivery, reducing carbon footprint 3.ICTs for inclusion and participation - based on digital literacy 4.ICTs for efficient and open government 5.Ultrafast broadband a key enabler of smart, sustainable and inclusive growth Slide 15 1.Economic Growth: A vibrant Digital Single Market: Opening up access to content: by simplifying copyright clearance, management and licensing. Making online and cross border transactions straightforward. Building digital confidence: strengthen citizens' rights and enhance their digital awareness and confidence e.g. by Issuing a digital code summarising the rights of citizens in the online world in a clear and accessible way. Proposing an EU-wide online dispute resolution system for eCommerce transactions, so that consumers know where to go when things go wrong Reinforcing the single market for telecommunications services 15 Slide 16 Interoperability for innovation, growth & open and efficient government services Boost competitiveness and innovation by enhancing interoperability of devices, applications, data repositories, services and networks by . Promoting interoperability between e-administrations by adopting European Interoperability Strategy and Frameworks in 2010 Issuing guidance on the link between ICT standardisation and public procurement so as to promote efficiency and reduce technological lock-in. Slide 17 ICT for enhancing digital literacy, skills and inclusion Background or skills should not be a barrier to taking part in the Digital Society. But today, 30% of Europeans have never used the internet, while Europe could lack 700,000 IT jobs by 2015. To tackle these problems, the Digital agenda will: Propose digital literacy and competences as a priority of the European Social Fund. Propose by 2012 an EU-wide certificate for e-skills, like the common EUROPASS CV classification, Take measures to ensure that websites providing public services are accessible to all citizens, including the elderly and persons with disabilities. Slide 18 7. ICT-enabled benefits for EU society Help Europe face challenges such as supporting an ageing society, climate change, improving transportation efficiency and mobility, empowering patients and ensuring the inclusion of persons with disabilities: Ensure adoption by 2011 of a common methodology for the ICT sector to report its greenhouse gas emissions Set-up wide-scale pilot actions to give Europeans secure online access to their medical health. Define a minimum set of health information to increase safety and medical assistance to Europeans, for instance in an emergency abroad,. Propose a sustainable financing model for the EU public digital library Europeana to improve online access to the European cultural heritage. Make e-Government an everyday convenience for European citizens and businesses by establishing a list of common cross- border services that allow businesses and citizens to operate independently or live anywhere in the EU. Slide 19 4. Ultrafast broadband a key enabler of smart, sustainable and inclusive growth The Europe 2020 initiative has set the target of bringing: basic broadband to all Europeans by 2013 and to ensure that, by 2020, (i) all Europeans have access to much higher internet speeds of above 30 Mbps and (ii) 50% or more of European households subscribe to internet connections above 100 Mbps. To get us on track for these targets the Commission will adopt a broadband package in 2010 to : lay out a common framework for actions at EU and Member State level, explore how to attract capital for investments through credit enhancement (backed by the EIB and EU funds), open the way to stimulate wireless broadband in the EU through an ambitious European Spectrum Policy Programme for efficient radio spectrum management encourage investment in competitive Next Generation Access networks by issuing clear regulatory guidance. February 12, 2010 19 Slide 20 Key actions for Member States Developing National Broadband Plans by 2012 Coverage, speed and take-up targets Measures to facilitate broadband investments Involving potential investors in civil engineering works Clearing rights of way Mapping of passive infrastructure Better absorption of Structural and Rural Development Funds Slide 21 Structural Funds in ICT Rolling out broadband and exploiting ICT use in the public and business sectors - is slower than average with uneven performance General absorption rate of structural funds: 27.1% Absorption rate for broadband infrastructure: 18.1% Marked differences exist between convergence and competitiveness regions, with 10% and 59% of the funds allocated to projects respectively, Absorption rate for ICT applications and services: 22.1% Differences between convergence and competitiveness regions: SI: 86%, BE: 73%, PT: 47%, PL: 26%

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