Comment Neelie (Kroes)

Making speeches talk

Comment Neelie

A connected continent for European competitiveness

Brussels, 17 October 2013

BusinessEurope Executive Committee
SPEECH/13/828 (see the source)
by Neelie Kroes
Vice-President of the European Commission responsible for the Digital Agenda

It's a pleasure to speak to you today.

As you know, we have just issued new proposals for a connected continent.sentence permalink

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On paper those measures are about the telecommunications sector. And that's where - predictably - the loudest reactions have come from.sentence permalink

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But in fact this proposal doesn't just concern one sector, it concerns European competitiveness across the board. And it's time all businesses took this just as seriously: businesses of every shape, size and sector.sentence permalink

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Take it seriously, by looking at the interest of our whole economy – not any one vested interest. By looking to the amazing new opportunities of the future, not to the rip-offs of the past.sentence permalink

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That's why I'm glad to have you here today.sentence permalink

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We have many new digital innovations on the horizon. Innovations to spur productivity and performance for everyone.sentence permalink

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In that world, connectivity is economic oxygen. Everyone needs 21st century infrastructure to compete. Every business is a digital business.sentence permalink

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In sectors from online retail to chemicals.sentence permalink

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In functions from logistics to banking.

Tools from cloud computing to social networking.sentence permalink

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For businesses large and small.

All of them help you perform and compete.sentence permalink

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I know what problems businesses face. I know when you're sat around a boardroom trying to ensure the best possible future, and stay ahead of the game.sentence permalink

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But the game is a digital one. The Internet is rapidly entering a new era. From big data to the Internet of Things, it can transform everything we do.sentence permalink

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If we want to lead we have to act now. Not in 2020, not next year, but now.sentence permalink

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Europe has to ride that wave, not drown in it.sentence permalink

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Our digital agenda is about helping Europe capture these opportunities. Addressing the whole ecosystem.sentence permalink

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From supporting a vibrant startup ecosystem. To ensuring the digital skills for the future.sentence permalink

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And it's about bringing down barriers within our digital single market. So content, applications and other digital services freely circulate. To a market of 500 million connected citizens and countless digital businesses.sentence permalink

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We are ensuing the rules ensure that unified, secure digital single market.sentence permalink

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And we are investing in tomorrow's innovation, from big data, to electronics, to 5G mobile.sentence permalink

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But ultimately, all digital innovation relies on one thing: telecoms networks.sentence permalink

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And those networks, that broadband bedrock, can only be provided by a European telecoms sector that is strong, healthy and dynamic.sentence permalink

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And that is what our Connected Continent proposal is about. Giving those telecoms operators the chance to offer you, and every European, the innovative, pan-European services of the future.sentence permalink

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I have to say the loudest reaction has been against just one or two elements: on roaming and intra-EU calls. Those voices speak out against fairer prices for calling and texting across European borders; against bringing new pan-European, roaming-free deals onto the market.sentence permalink

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Well I think you know my views. Roaming isn't just an irritant for those travelling in Europe. It's not just a reminder of borders that are supposed to have disappeared.sentence permalink

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It's actually not sustainable. Pretty much all market analysts agree: for the most part they've already discounted those roaming revenues.sentence permalink

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I know you are preparing a statement on our proposal.sentence permalink

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But here's my tip for it. Don't look at protecting vested interests. Look at safeguarding Europe's strategic interest.sentence permalink

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Don’t look at the cash cows of the past. Look at the opportunities of the future.sentence permalink

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The fact is, roaming rip-offs don't lead to investment. They never have, and they won't.sentence permalink

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Do you invest in new, improved infrastructure as long as you can make easy money from roaming, without any upgrade? I doubt it; why should it?sentence permalink

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In the era when you paid six euros a megabyte to check your email abroad: did that money go to investment? I see no evidence at all.sentence permalink

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Is it indeed possible that such a transient, unsustainable revenue source could lead to long-term investment? I doubt it.sentence permalink

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In the era when most travelers turned off their phones for their entire trip: who exactly benefited from that?sentence permalink

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I suppose it should come as no surprise that some want to cling on to those revenues as long as possible. But you shouldn't accept everything they tell you.sentence permalink

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And remember that our proposal is not mandatory, not based on regulated prices. That's not an approach we can take forever, even if I'd want to. Rather, I am proposing a voluntary approach based on market deals.sentence permalink

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If someone tells you they're scared of those market mechanisms, scared of opening up to that competition, I'd be pretty sceptical. I'd ask myself why.sentence permalink

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And remember: who's paying those roaming charges? It's you: you and your members. Business customers can't travel and work across Europe without facing a huge bill. A unfair bill which you end up paying.sentence permalink

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Let me tell you what does lead to investment. It's planning for high-quality, high-speed services that people will value. It's services and business models that exploit our economy's growing need for data. Services that innovate to help you and your business. That’s what we should be aiming for.sentence permalink

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Tomorrow's telecoms business models are built on data. They won't be built on roaming, any more than they're built on faxes and telegrams. Nor on guaranteeing scarcity. But ensuring plentiful broadband, and the tailored innovative services that use it.sentence permalink

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And we deliver that by bringing down barriers for economies of scale, by allowing innovation, and with a predictable and stable framework in the areas that matter for investment. That is exactly what we have put forward.sentence permalink

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There's a huge opportunity on offer for a digital Europe. But I'd like to ask you some questions.sentence permalink

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Do you think connected cars will take off if they have to pay roaming charges?sentence permalink

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Do you think connected devices will take off without a consistent EU spectrum system?sentence permalink

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Do you think that cross-border businesses will shell out for cloud computing, videoconferencing, 3D printing, if they have to run on slow and insecure connections?sentence permalink

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Do you think businesses will prosper without a competitive choice of tailored services?sentence permalink

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In an economy based on connectivity, will cross-border businesses continue to want multiple contracts with separate suppliers in different countries, without any guarantees of quality, security and speed between them?sentence permalink

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Does Europe stand a chance in those new digital markets, either supplying or demanding, if we continue as we are: fragmented, disjointed, subscale?sentence permalink

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This proposal is good for the telecoms sector. Even those who can't see further than their own nose.sentence permalink

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But this goes beyond one sector.

We need to regain leadership across the digital ecosystem, from app designers to handset makers.sentence permalink

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Countless businesses operate across the single market: now they need the communications to match.sentence permalink

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And we all need the economic boost of a competitive telecoms single market: worth 110 billion euros a year.sentence permalink

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Telecoms networks are essential infrastructure. And becoming more so.sentence permalink

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When we debate energy, it's not just the energy sector who are involved. When we debate transport, it's not just the transport sector.sentence permalink

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So ask yourself who your members actually are. I'll bet those who provide telecoms infrastructure are far outnumbered by those who use it. Use it every day for all sorts of business functions. So make sure you're representing them too.sentence permalink

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Some say we are moving too fast. I must say it's pretty rare – and pretty refreshing – when anyone accuses the EU of moving too fast.sentence permalink

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In fact I take it as a compliment. Because look out there: the world is moving fast too. We need to keep up.sentence permalink

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And to those who say we haven't consulted enough. Well, in fact there are many studies that have asked businesses what they want from the communications market.sentence permalink

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What do they say?

Businesses say they want innovative tailored services, a competitive choice of providers, and reliable fast broadband.sentence permalink

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They don't say they want to carry on paying vast roaming bills, I can assure you.sentence permalink

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If you want a discussion, okay: let's have it now. Tell me what kind of connectivity market you need to support your business. I'm listening. But let's not use that as an excuse for inaction.sentence permalink

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Next week EU leaders face that decision to create a connected continent. I hope they make the right decision: for the sake of every company, every citizen, and our whole competitiveness. And I hope you can join with me, in a partnership for a digital Europe: a continent ready to face the future.sentence permalink

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