Potential of e-inclusion to strengthen territorial cohesion

Broadband strategies in sparse and depopulating areas:

Challenges and potentials

Erik Gløersen

DG REGIO Conference on Regional policy responses to demographic challenges

Brussels, 25 and 26 January 2007

Workshop 2C: Potential of e-inclusion to strengthen territorial cohesion

• ICT solutions such as e-government, e-business, e-learning and e-health can be a pivotal tool for territorial cohesion.

• This workshop will look at how Cohesion Policy can be used to support the development and application of these possibilities

with the objectives of increasing accessibility to public services and improved health

to jobs and business opportunities.

Workshop 2C: Potential of e-inclusion to strengthen territorial cohesion

- How should we approach the demo-graphic trends against which e-inclusion / ICT measures are formulated?

- What has the effect of broadband on territorial cohesion been so far?

- What are the core issues for ICT strategies in favour of territorial cohesion?

• Regional(NUTS 3) scale

Demographicdecline

Source: Nordregio

• Municipalscale

Demographicdecline

Source: Nordregio

• Regional(NUTS 3) scale

Sparsity

Source: Nordregio

• Municipal scale

Sparsity

Source: Nordregio

Each scale = differentphenomena and issues

Which is most relevant?

Sparsity

• Populationwithin 50 km radius:

(=potentialcommuting distance)

• Population potential of less than100,000 inh

Sparsity

”Nordic perspective”

• Population potential of less than395,000 inh

Sparsity

”Continental perspective”

• Three areas of the same size and with the same population

• Same density andsame population potential

• Different challenges

Settlement patterns

Approaching sparsity and demographic trends

• The scale is of fundamental importance

• Demographic decline mainly in sparse areas

• Sparsity: about labour markets that are too small to diversify specialised and vulnerable local communities

Deregulation and globalisation create additional challenges for sparse areas

eGovernment availability

Source: Eurostat

eGovernmentusage among individuals

Source: Eurostat

Broadband accessHouseholds

Source: Eurostat

eGovernmentusage among enterprises

Higher performancein the peripheriesand some new MS?

Source: Eurostat

Broadband accessenterprises

Source: Eurostat

Broadband access, eGovernment availability and eGovernment usage

• Highly correlated for individuals

• Not correlated for entreprises

• East/West and North/South divide for all indicators, except enterprise usage

• Wide variety of situations across Europe

Broadband accessHouseholds

Source: Eurostat

• Sparse areas(density below 100 inh/km2):

Broadband accessHouseholds

Source: Eurostat

• Dense areas(density over 500 inh/km2)

Ratio dense areas/sparse areas

Source: Eurostat

”Digital divide” in terms of household broadband access

First approach of the “Digital divide”

• North/south divide for sparse areas:smallest contrasts in countries with

- the most sparsely populated areas- the best Internet penetration rate

• East-West divide for dense areas

• Contrasts in terms of national “digital divides” follow a distinct geographical pattern

Nordic broadband strategies

• Nordic countries have demonstrated that extensive broadband access and usage in sparse areas is possible.

• Full coverage foreseen before 2010 in Finland, Sweden and Norway, in spite of extremely sparse and wide-spread population

Nordic ICT strategies

• Different national strategies:

– Finland: national authorities have mandated a single network operator to establish a 450 MHz digital mobile network, selling access to a range of service operators;

– Sweden: 60% of municipalities have built broadband cables. Their total investment exceeds 1,5 billion Euros. These are generally rented to private network operators on a commercial basis;

– Norway has established a funding organisation where local authorities can apply for subsidies.

Nordic broadband strategies

• Evolving strategy in Sweden:

– Initial ambition: to establish an open an open national backbone based on fibre optic technology, covering every municipality in the country.

– The state was to survey the existence of competition and plurality at all network levels.

– Currently, this state owned backbone is just one among others. Plurality at local level is generally not a problem.

Source: Hansteen (2005)

Nordic broadband strategies

• Issues:

– Local monopolies in network ownership;

– Network openess and neutrality;

– Running a broadband communication operation involves

• economic risk, • ‘market positioning, • customer handling,• continuous investments. is it an appropriate task for local authorities?

Source: Hansteen (2005)

European broadband strategies

• Ubiquitous broadband is achievable – but for what purpose?– Need for a critical assessment of current demographic

patterns and trends:• At what scale do we wish to preserve current

settlement patterns?• What does this imply in terms broadband

development?

• Internet primarily for social inclusion orfor economic development?– Different objectives and solutions

European broadband strategies

– Wide variety of situations in Europe: only local and regional authorities can identify appropriate solutions Structural Funds appear as a

well-suited instrument

– “Pump-priming” role of public authorities at multiple levels

• In terms of regulatory framework• in terms of services and content

Challenging combined need for local initiatives and for national/European coordination