Faites vos jeux

I have in the past been critical of European Commissioner Neelie Kroes for taking an unduly consumer-oriented view of the pursuit of competition in telecoms markets.  Her more recent comments on the importance of new network investment, and its benefits, were therefore very welcome – if a little intriguing.  Her comments, marking the publication of the second edition of the Commission’s Digital Agenda Scorecard, were reported as follows: 

“Europeans are hungry for digital technologies and more digital choices, but governments and industry are not keeping up with them…This attachment to 20th century policy mindsets and business models is hurting Europe’s economy. It’s a terrible shame. We are shooting ourselves in the foot by under-investing. Europe will be flattened by its global competitors if we continue to be complacent.” 

Well, that’s powerful stuff, and the new emphasis on international competitiveness is particularly refreshing.  (It’s gung-ho, battlefield tone contrasts markedly with the reactive, ‘evidence-based’ stance often adopted by our UK regulator).  But what are we to make of that allusion to ‘20th century policy mindsets and business models’?  In what way should mindsets and business models adapt to the 21^st century? 

It’s not for me to second-guess Neelie’s thinking but the idea that things may be changing does reflect the shift in the Commission’s focus away from the ‘steady-state’ objective of connecting all citizens to basic broadband and more towards facilitating the roll-out of superfast and even ‘ultra-fast’ networks.  Earlier this month, the EC published a consultation on proposed new rules for state aid funding of broadband networks.  This guidance asserts that NGA represents a step-change in technology, rather than just an upgrade, underlining the risk of a new digital divide if some areas are left behind: 

"It is important to bear in mind that in the longer term NGA networks are expected to supersede existing basic broadband networks and not just to upgrade them. To the extent that NGA networks require a different network architecture…it is likely that in the future there will be marked differences emerging between areas that will be covered and areas that will not covered by NGA networks." 

There’s a new game in town…