EU tries to boost broadband coverage

Finding a way out of the financial crisis engulfing Europe is troubling policy leaders across the continent, but what the area most agree on is vitality of an upgrade of modern infrastructure to help new technologies and industries grow.

EU leaders are hoping that improving the capacity for internet speeds and coverage will help promote a thriving online community of businesses, and not get left behind by forward-thinking economies in Asia and the US.

European Commission vice president Neelie Kroes yesterday announced she would be asking telecom CEOs and politicians to endorse her Connecting Europe Facility fund, which would provide investment of €9.2bn between 2014 and 2020.

Announcing the plans yesterday, Kroes said: “Already today we see the havoc when broadband networks get congested. But with Internet use doubling every 2-3 years, those networks need a serious upgrade. Without investment, we condemn our citizens to slow connections with frequent blackouts; we make our businesses less competitive and less productive; we force our public authorities to meet 21st century expectations using 20th century systems.

She hopes that the loans would lead to telecom companies pumping a further €100bn into improving coverage across the EU and helping countries with slower speeds and patchy coverage. Ultimately, she hopes that as many as 45 million homes will be provided with fast broadband connections.

Kroes added: “On 12 July I set out the regulatory framework to encourage private investment in broadband. But the fact is private money can’t do it all: broadband needs public support through financial instruments. If we fail to invest, millions in less populated areas will find themselves on the wrong side of the digital divide, cut off from tomorrow’s opportunities. That’s bad for our economy, and bad for our society.”