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EU Structural Funds for broadband internet
23-03-2006

The European Commission plans to make broadband internet access available to every EU citizen within four years. High-speed internet connections have become an economic necessity across Europe, according to European Regional Policy Commissioner Danuta Hübner. The EC wants private enterprise to build the networks, but intends to subsidise construction in remote rural areas where this is not commercially viable. In order to do so, the EU wants to make available Structural Funds. The plan seems to have full support of the Commission, no fewer than four Commissioners presented the plan together.
Information Society Commissioner Viviane Reding, Competition Commissioner Neelie Kroes, Regional Policy Commissioner Danuta Hubner and Agriculture and Rural Development Commissioner Mariann Fischer Boel presented the joint strategy to plug the gaps in terms of access to and coverage of high-speed broadband internet in Europe.
By 2010, the Commission has two targets: 
  • 50% of households should be equipped with broadband;
  • there should be 100% coverage in Europe.
The Commission is pleased with progress so far: in 2005, 25% of European households had access to broadband - with peaks of 90% in urban areas - and 60% of companies and households in the remote and rural areas of the EU-15. The EU now has 60 million broadband connections for its 460 million citizens. The Netherlands tops the list, together with Denmark and Finland. There are large differences between rural and urban areas: broadband penetration is absent in 13% of rural areas and most of the new member states are lagging behind, with sometimes less than 10% penetration.
Danuta Hübner stated that "where there are genuine market failures", the Commission and member states must reach agreement whereby certain sums from the EU Structural Funds can be invested in Information and Communication Technologies (ICTs). In poorer regions, the 'convergence' objective should serve to develop basic infrastructure and in regions under the 'competitiveness and jobs' objective, the money should be used to support the adaptation of SMEs and human capital.
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Source: EISSource: Radio Netherlands

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