Budapest, 5th April 2010

Digital Agenda for EuropeHeidi Cigan,

DG Information Society and MediaEuropean Commission

• Europe 2020 (March 2010): “A European Strategy for smart, sustainable and inclusive growth”

• Digital Agenda (May 2010): “… to deliver sustainable economic and social benefits from a digital single market based on fast and ultra fast internet and interoperable applications”

• Commissioner Kroes:

“Every European Digital”

Seven action areas:1. A vibrant digital Single Market2. More interoperability and better standards3. Greater trust and security4. Fast and ultrafast internet access5. Greater investment in R&D&I6. Enhanced digital literacy, skills and inclusion7. ICTs that spread wider social benefits

Music Download per quarters

0

50

100

150

200

250

300

350

Q12005

Q2 Q3 Q4 Q12006

Q2 Q3 Q4 Q12007

Q2 Q3 Q4 Q12008

Q2 Q3 Q4 Q12009

Q2

Europe USA Asia

Source: Screen DigestMusic Download per quarters, 2005-09

1. A vibrant digital Single Market

Online single market

Source: Commission on the basis of Eurostat

Domestic and cross-border internet purchases, 2009 (in % of internet

users)

Over 50% of internet users purchased online, but only 22% of them did so from other EU countries

0%

10%

20%

30%

40%

50%

60%

70%

80%

LU MT AT IE DK CY FI BE FR NL SI UK PT DE SE LV SK ES EL EE IT LT PL HU CZ BG RO EU27

from national sellers from sellers from other EU countries

60% of attempted cross-border internet shopping orders fail!

A vibrant digital Single Market

Digital Single Market

online access to legal content

50% shop online

20% buy cross-border

A vibrant Digital Single Market:key actions

• Opening up access to content

• Making online and cross border transactions straightforward

• Building digital confidence

• Reinforcing the single market for telecommunications services

••• 8

2. Interoperability and Standards

• Internet is the best example of the power of technical 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.

Interoperability and Standards

Recognize and create more and better standards in Europe

Make better use of these standards

Ensure interoperability even in absence of standards

Reasons for not using eCommerce

Source: Commission on the basis of Eurostat

Reasons for not buying online (% of individuals that have not ordered online during the last year)

Security, privacy and trust are important barriers to eCommerce

0% 10% 20% 30% 40% 50% 60% 70%

Others

Speed of the Internet connection is too slow

Delivery of goods ordered over the internet is a problem

Don't have a payment card allowing to pay over theInternet

Relevant information about goods and services difficult tofind on website

Lack of skills

Trust concerns

Privacy concerns

Payment security concerns

I prefer to shop in person, like to see product, loyalty toshops, force of habit

I have no need

3. Greater trust and security

Online trust and securityidentity theft privacy concerns

cybercrime spam

cybercrime centrecomputer emergency response teams

low trust = low use

DSL coverage

4. Fast and ultra-fast internet access

Source: IdateNational and rural DSL coverage in

the EU in December 2009

DSL coverage in the EU stands at 94%, while rural DSL coverage is 80%

74% 75%

82%85%

89% 89%91% 92% 92% 93% 93% 94.0% 94% 94% 95% 95% 96% 96% 96% 96% 97% 97%

99% 99% 100% 100% 100% 100% 100% 100%

45% 52% 54% 33% 69% 67% 60% 85% 82% 85% 90% 79.7% 83% 80% 89% 86% 30% 90% 85% 89% 96% 91% 99% 100% 100% 100% 100% 91% 100%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

RO PL SK BG LT LV EL CZ IE SI ES EU27 AT EE HU IS CY FI IT PT NO DE MT NL BE DK FR LU SE UK

National DSL coverage Rural DSL coverage

The evolution of the EU broadband market

Source: Communication CommitteeEU fixed broadband population penetration development

More than 4 times increase in 6 years, but growth has slowed down

Fast and ultra-fast internet access

The S-curve in Broadband penetration

6.2%

10.0%

14.2%

18.2%

21.6%

23.9%25.6%

0%

5%

10%

15%

20%

25%

30%

Jul 04 Jul 05 Jul 06 Jul 07 Jul 08 Jul 09 Jul 10

The growth rate of Broadband - number of added lines per day

0

10000

20000

30000

40000

50000

60000

Jul 04 Jul 05 Jul 06 Jul 07 Jul 08 Jul 09 Jul 10

High-speed broadband

Source: Commission on the basis of Point Topic

FTTx deployment in the EU, US, Japan and South Korea

The EU is lagging behind in high-capacity broadband deployment

Fast and ultra-fast internet access

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

14 000 000

16 000 000

18 000 000

20 000 000

2005Q2 2006Q2 2007Q2 2008Q2 2009Q2 2010Q2

Japan South Korea USA EULinear (Japan) Linear (South Korea) Linear (USA) Linear (EU)

Figures include FTTH and FTTB/x + LAN

Internet for all

20202013100% coverage of ≥30Mbps

100%internet coverage

50% householdstake-up of ≥100Mbps

5. ICT research and innovation

double investment to €11 bnlight & fast measures to access

Funds

Coordination

6. Digital inclusionget more people online

now 2015 now 2015 now 2015

regular use disadvantaged never used

eSkills training

60%75%

41%60%

30% 15%

7. Digital public servicesEU citizens use eGovernment

Member States have online cross-border public services

ALSO: EU citizens access eHealth online

50%50%

100%100%

European Council

Digital Agenda Assembly

Digital Agenda Scoreboard

Governance

Member States

European Parliament

Yearly DAE Communication

stakeholders

Thank you! Questions?

Digital Agenda for Europehttp://ec.europa.eu/digital-agenda