ESPON 1 2 2 Territoriality of Telecommunication Networks

ESPON 1. 2. 2: Territoriality of Telecommunication Networks and Services in Europe Ranald Richardson CURDS University of Newcastle upon Tyne ESPON Seminar, Nijmegen, The Netherlands 11/12 October 2004

Composition of TPG 1. 2. 2 • CURDS, University of Newcastle, UK • Karelian Institute, University of Joensuu, Finland • CEIDET, University of Aveiro, Portugal • School of Built Environment, Heriot Watt University, UK

Presentation structure • • Key messages and final results Key policy recommendations Main scientific achievements Proposals for further research and improvement of data availability • Evaluation of networking

Technologies and applications explored • We explored a number of inter-related and ultimately connected technologies from ‘mature’ to ‘advanced’ – – – – Fixed telephony Mobile telephony Personal computer Internet Broadband Internet broadband backbone networks Also looked at adoption of ‘e-commerce’

Some general points • Each technology exhibits a different territorial pattern • National specificities remain crucial in understanding the territoriality of telecoms • Our report represents a ‘snap-shot’ of a highly dynamic and complex environment • Attempted to analyse our findings at the macro, meso and micro scales.

Macro-level findings • ‘North-south’ divide in EU 15+2 – Strength of Nordic countries a key component of this • The EU core-periphery distinction does not generally hold true for telecoms • There is an ‘west-east’ divide across all technologies: – though some individual N 12 countries outpace individual EU 15 countries – progress in N 12, but not sufficient for catch up to EU 15+2 at current rates of growth • Differences between N 12 countries – No ‘Nordic bloc’ equivalent – Romania and Bulgaria tend to lag

Macro-level findings • In terms of the latest technology, broadband is most developed in Benelux, as well as Sweden and Denmark. Some N 12 countries out-perform some EU 15 countries • Of all technologies mobile shows most even territorial spread and to some extent exhibits a ‘reverse core-periphery’ pattern

Proportion of population subscribing to broadband (DSL and Cable Modem) in European Countries, 2002

Main findings at the meso-level • Data extremely limited for N 12 so most mesolevel analysis is at EU 15 • National specificities remain crucial in understanding regional differences across the European territory • Reflected in narrow ‘category spread’ between regions within countries, partial exception is broadband which is at early stage of roll out

The level of ‘national effect’ in Internet uptake in EU 15 regions AT BE DE DK ES FI FR GR IE IT LU NL PT SE UK

Main findings at the meso-level • Factors ‘explaining’ regional differences beyond the ‘national effect’ are complex and vary between technologies, e. g. , : – High PC and Internet take up is associated with developmental status, with non-Objective 1 regions and those with higher GDP – High broadband take up associated with non. Objective 1 status, relatively high GDP, density of population, and proximity to the core – High mobile take up is associated being outside the core

The relationship between household Internet access and Objective 1 status in EU 15 regions (mean = 33. 6)

Main findings at the micro level • Metro-urban-rural divide in supply of telecoms – This reflects concentration of activities with high demand for telecoms in cities – For newer technologies it also reflects profit maximising roll out strategies associated with nodal technologies. Telcos focus investment first on concentrations of consumers and businesses

Main findings at the micro level • Metro-urban-rural divide in demand/uptake for telecoms, – but this varies across technologies. More mature technologies tend to have more even territorial demand/uptake, in part, at least reflecting more even roll-out – and the metro-urban-rural balance varies across countries

Index of technology penetration in households by locality type (figures from 2002) EU 15 avge = 100 Metro Urban Rural Fixed 100 100 Mobile 100 101 100 99 PC 100 104 96 Internet 100 109 103 91 Broadband Internet 100 160 100 60 Technology

Proportion of Internet household penetration by locality type (figures in brackets express the data as an index of the national figure)

Key policy recommendations • Addressing the ‘aspatiality’ of regulatory policy • Demand aggregation of public sector (and private sector) telecoms procurement • Subsidizing or constructing telecoms networks • Establishing greater symmetry between the public authorities and telecoms providers • Development of common indicators and improved and standardised collection • Regional observatory (observatory with a regional focus) in each Member State

Data improvement – demand side • Demand side data already improving, through e. Europe Action Plan monitoring process and DG Infso surveys • More needs to be done to meet ‘ESPON perspective’ e. g. , : – Surveys need to be extended to N 12 plus Norway and Switzerland on a comparable basis – Comparable data below NUTS 2 required – Common definitions of metro-urban-rural required

Data improvement – supply side • Very problematic – ownership of data by individual companies in an extremely competitive market • Potential (partial) solutions: – Obliging telcos to provide spatial data to regulators or relevant ministries – Establishing regional telecoms (or wider information society) observatories

Future research • Reanalysing European data from an ESPON perspective on an annual basis – developing our analytical tools to provide time-series data • Building on our analysis of KMI and Telegeography data and other sources • Qualitative research aimed at enhancing our understanding the territorial patterns uncovered during our project

Scientific achievements: a few examples • Probably largest and most comprehensive telecoms study from a territorial perspective • First in-depth exploration of how telecoms developments in Europe relate to spatial planning/ESDP contexts. • Development and mapping of a number of innovative typologies of NUTS 2 regions: based on a combination of available data sets and modelling for EU 15+2 and EU 27+2

Networking activities • Within TPG • Across TPGs • Beyond ESPON, some examples: – BISER – SIBIS – UNDERSTAND – eris@ • Commission