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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
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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.
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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?
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• Regional(NUTS 3) scale
Demographicdecline
Source: Nordregio
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• Municipalscale
Demographicdecline
Source: Nordregio
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• Regional(NUTS 3) scale
Sparsity
Source: Nordregio
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• Municipal scale
Sparsity
Source: Nordregio
Each scale = differentphenomena and issues
Which is most relevant?
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Sparsity
• Populationwithin 50 km radius:
(=potentialcommuting distance)
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• Population potential of less than100,000 inh
Sparsity
”Nordic perspective”
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• Population potential of less than395,000 inh
Sparsity
”Continental perspective”
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• Three areas of the same size and with the same population
• Same density andsame population potential
• Different challenges
Settlement patterns
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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
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eGovernment availability
Source: Eurostat
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eGovernmentusage among individuals
Source: Eurostat
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Broadband accessHouseholds
Source: Eurostat
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eGovernmentusage among enterprises
Higher performancein the peripheriesand some new MS?
Source: Eurostat
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Broadband accessenterprises
Source: Eurostat
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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
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Broadband accessHouseholds
Source: Eurostat
• Sparse areas(density below 100 inh/km2):
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Broadband accessHouseholds
Source: Eurostat
• Dense areas(density over 500 inh/km2)
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Ratio dense areas/sparse areas
Source: Eurostat
”Digital divide” in terms of household broadband access
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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
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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
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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.
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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)
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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)
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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
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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