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Digital Strategy to drive economic recovery, says EU

Could a radical Digital Strategy see Europe escape its ‘deepest economic crisis since the 1930s’ - the EU think so.

By Richard Goodwin, 9 Jul 2009 at 17:43

EU Telecoms commissioner Viviane Reding yesterday gave a speech laying down the framework of a European Digital Strategy that seeks to aid and nurture the development of a digital super economy.

Like the Digital Britain Report, Reding’s European Strategy is concerned with laying the groundwork to make such a so-called digital economy possible.

Indeed, the first commitment the EU must make, according to Reding, is the implementation of a high speed broadband network, ensuring fast internet access for all.

“The roll out and development of high speed broadband internet could create around one million jobs in Europe, and spur broadband-related growth in economic activity to the tune of €850 billion,” said Reding.

She added: “Where investors take very large investment risks to bring fibre-to-the home, Europe's regulators should be flexible.”

Another key aspect is the reform of Europe’s telecoms rules. “This would pave the way for better regulation and coordination of telecoms rules in Europe's single market, and improve the way radio spectrum is managed in Europe, and strengthen consumer rights as well as the open nature of the internet,” Reding said.

She also spoke of the need to increase the number of 3G users within Europe, which only accounts for 16 per cent of the total.

“We are preparing important measures to abolish regulatory restrictions and reduce the cost of offering 3G and more advanced mobile services,” she said.

She added: “The ongoing broader EU telecoms reform, will allow the re-farming of the radio spectrum in the GSM band for new mobile services, thereby leading to savings of up to € 1.6 billion in capital costs for the mobile industry.”

Reding’s agenda also sets to create and nurture a safe and friendly environment for mobile payments, or “m-cash,” which would aid in the creation of “m-commerce” within the EU.

“We have more than 500 million mobile users in Europe. This means that Europe has the economies of scale to offer for an innovation-friendly environment that will allow transforming the mobile phone into an electronic wallet,” said Reding.