The European Commission has published a set of rules for when state aid should be used to roll out broadband networks, in a bid to speed up the deployment of high-speed next-generation networks in the European Union.
The guidelines (PDF), announced on Thursday, followed a public consultation. According to competition commissioner Neelie Kroes, the rules will "facilitate the widespread rollout of high-speed and very high-speed broadband networks, enhancing European competitiveness and helping to build a knowledge-based society in Europe."
"We expect to see up to ($442 billion) of investment in both high- and very high-speed European broadband networks in the coming decade," Kroes said in a speech marking the launch of the guidelines. "While this investment should be made mostly by private companies, there is an important role for public investment in achieving the widest possible access to broadband in under-served and non-profitable areas."
Kroes laid out three rules for the use of state aid in rolling out a broadband infrastructure. The first is that where there is no private investment, a public-service network is needed to ensure universal coverage. The second is that aid must only be used to deploy networks in areas that private providers do not find profitable; and the third is that the network must be open to all service providers.
"Public funds are not always needed for public authorities to promote broadband deployment and, in any event, they should not crowd out or delay private investments," Kroes added. "Before granting state aid, public authorities should therefore consider whether they can promote private investments with other means, for instance by co-ordinating civil works and streamlining administrative procedures."
The new guidelines are not only applicable to next-generation access (NGA)--a term that generally refers to fiber access--as they also cover ADSL, cable, and Wi-Fi networks. The Commission is still working on a separate draft NGA Recommendation that it hopes will give an indication of what regulators will expect from operators when deploying fiber and other high-speed broadband access.
In the U.K., incumbent operator BT has said it will roll out fiber to 10 million homes by 2012. The company is already trialing various ways of doing this in London, Cardiff, and Kent. And in June's Digital Britain report, the government proposed a 50-pence-per-month levy on fixed lines across the country with the aim of funding the rollout of next-generation broadband to unprofitable areas.
In a statement issued Thursday, the Commission noted that one of its fundamental concerns is to avoid the re-creation of old monopolies with public support.
"(The new) guidelines contain appropriate safeguards to ensure that any broadband infrastructure funded with public money does not favor (the) existing operator," the Commission said. "A company that receives public monies needs to provide effective open access to its competitors to allow them to compete in an equal, non-discriminatory way."
David Meyer of ZDNet UK reported from London.
Apple and other big phone makers have struck a deal with the European Commission to start selling phones with universal cell phone chargers starting next year.
Side by side view of a micro-USB connector and a regular USB connector.
(Credit: Wikimedia Commons)Under the agreement, manufacturers would start using micro-USB connections for phone chargers used for smartphones. Apple joins other big cell phone makers including LG, Motorola, Nokia, Research In Motion, Samsung and Sony Ericsson in agreeing to the new standard. Chipset makers, such as NEC, Qualcomm and Texas Instruments have also agreed to the deal.
In February the GSMA, a trade association for mobile carriers using GSM technology, said it had brokered a deal with handset makers to get the micro-USB technology into cell phone chargers by 2012. And the CTIA, the U.S. wireless trade association, backed the standard in April of this year.
The initiative has many advantages. For one it makes it much easier for consumers who no longer have to worry about losing their one and only cell phone charger. It also cuts down on waste since people can reuse their cell phone chargers when they get a new phone. Even though some cell phone manufacturers were reluctant to give up their proprietary cell phone chargers for fear that it would make it easier for customers to switch to new phones from competitors, eventually standardizing on one technology will help these manufacturers reduce costs.
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The European Commission has lowered the price ceiling for roaming voice calls.
Information Society Commissioner Viviane Reding announced on Friday that starting August 30 the price cap for roaming calls on mobile phones would be reduced from 0.49 euros (72 cents) to 0.46 euros per minute (excluding value-added tax) for making a call, and from 0.24 euros to 0.22 euros per minute (excluding VAT) for receiving a call, while in another EU country.
The price reductions are due to the EU's Roaming Regulation, adopted by the Commission in 2007 to "curb the excessive roaming charges consumers had to pay for roaming calls."
"The EU Roaming Regulation was introduced so that Europeans could exercise freedom of speech with their mobile phones without fear of excessive bills when traveling in the single market," Reding said in a statement on Friday. "As a result, over 400 million consumers across Europe have benefited from significant savings of around 60 percent when making and receiving calls during travel, holiday or business."
Reding and the Commission have now set their sights on text and data roaming costs, which they say are "unjustifiably high."
"In the first quarter of 2008, a customer using data services paid on average 2.05 euros per megabyte while roaming with companies from their operator's group, and 5.40 euros per megabyte for roaming with non-group companies," Reding stated. "Italian and Slovak consumers who roam with a non-group company can even pay over 12 euros per megabyte."
The EU Roaming Regulation will expire in 2010, and is currently under review. The Commission must propose whether to extend the regulation by the end of 2008, following a request from the European Parliament.
Tom Espiner of ZDNet UK reported from London.
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