Matthew Howett
Regulatory challenges of 'bridging the broadband gap'
We recently had the opportunity to participate in the European Commission's conference on Bridging the Broadband Gap held in Brussels. Although not its core focus, the conference provided a forum to discuss the regulatory challenges of deploying next-generation access (NGA) networks and the opportunity for public-private initiatives. Comment: The most important conclusions were:-
Public funding of broadband infrastructure can be compatible with state aid rules. As long as public policy rationale for state aid is well-defined, public money is likely to be made available. So far the Commission has approved over 20 projects. Successful requests for funding are more likely if the tender process is open; wholesale access obligations included, duplicating infrastructures avoided, and the focus is on low penetration areas. National and regional policy must also be co-ordinated.
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Regulation of spectrum an essential pre-condition to investment in wireless technologies for NGA. Particularly in rural areas Wireless technologies (in particular the 2.6GHz band and WiMAX) will be crucial. However, this will only be successful with a more flexible, faster and less bureaucratic spectrum policy. Promisingly, Commissioner Viviane Reding spoke of plans for a change of approach with the framework review.
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Aim of remote regions should not be to catch up with current technologies, but to anticipate next generation. Among a showcase of the best European national, regional and local broadband initiatives were municipalities that had successfully deployed open-access NGA. Such investments are clearly not risk free, but MEPs felt the risk of missing out on the 'information society' was even greater.
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Current regulatory risk surrounding NGA far greater than business model risks. A number of operators felt that uncertainty around regulatory conditions was greater than the demand uncertainty associated with investing in next-generation networks (NGNs). In particular, the Commission should make it a priority to eliminate barriers to developing infrastructures, for example through clear rules on duct sharing.
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Review of European framework should recognise there is no 'one size fits all'. Operators are frustrated by the lack of respect for individual circumstances. There is consensus over the importance of recognising different competitive situations across geographies. This is also true of technologies. A technology neutral approach should continue and a patchwork of solutions may well be the best approach.
