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 demographic 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?
Demographic
decline
• Regional
(NUTS 3) scale
Source: Nordregio
Demographic
decline
• Municipal
scale
Source: Nordregio
Sparsity
• Regional
(NUTS 3) scale
Source: Nordregio
Sparsity
• Municipal scale
Each scale = different
phenomena and issues
Which is most relevant?
Source: Nordregio
Sparsity
• Population
within 50 km
radius:
(=potential
commuting
distance)
Sparsity
• Population
potential
of less than
100,000 inh
”Nordic
perspective”
Sparsity
• Population
potential
of less than
395,000 inh
”Continental
perspective”
Settlement patterns
• Three areas of the
same size and with
the same population
• Same density and
same population
potential
• Different challenges
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
eGovernment
usage among
individuals
Source: Eurostat
Broadband
access
Households
Source: Eurostat
eGovernment
usage among
enterprises
Higher performance
in the peripheries
and some new MS?
Source: Eurostat
Broadband
access
enterprises
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
access
Households
• Sparse areas
(density below
100 inh/km2):
Source: Eurostat
Broadband
access
Households
• Dense areas
(density over
500 inh/km2)
Source: Eurostat
”Digital divide”
in terms of
household
broadband access
Ratio dense areas/
sparse areas
Source: Eurostat
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 or
for 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