Investments in Broadband and Next-Generation Networks (NGN) to foster development and innovation

Deputy Relu Fenechiu  

 

 

Ladies and gentlemen,

Distinguished audience,

 

     It gives me a great pleasure to be here, in Geneva, and I am honored to have the opportunity to address to you at the Third Parliamentary Forum on Information Society. I am convinced that this meeting will contribute significantly to strengthening inter-parliamentary cooperation for the advancement of information technology and communication-related policies in favor of the internationally-agreed development goals.

     Broadband is a vector of global economic development and a way to exceed economic crisis by creating jobs. Investment in broadband is a strong foundation for renewed economic competitiveness and restructured services. Furthermore, broadband enables revolutionary business process. The development of electronic commerce can bring important benefits for the companies by reducing the significant transaction costs and by increasing the speed of interaction with business partners.

     From this perspective, Romania sustains the speeding up efforts to combat the digital dividend (gap) by a broadband coverage as close to 100% for all citizens and consumers as a main goal in the next years. Moreover, in light of European trends in this matter, Romania is aware of the usefulness/utility of widely adopted high-speed broadband.

     Using communication technologies enables people and businesses to communicate online with public authorities The development and diversification of electronic services relieve the burden of making different roads to government offices for the citizens because the forms can be submitted via the Internet.

In this sense, a coherent and integrated national system for online public services dedicated to citizens and firms will give our country an advantage for sustainable growth, prompt convergence in the European space, the inclusion and strengthening of some areas of high competence. The development of broadband communications infrastructure is a key priority for our country. However, we must not forget the national particularities and realities, according to which broadband infrastructure in Romania is quite well developed in major cities due to private investment, but reduced in rural areas where the penetration rate is only 15%. Therefore the priority is to stimulate supply and increase access to broadband communications especially in rural and disadvantaged areas.

     In addition, the low penetration of fixed telephony can affect the development of the broadband market. In this respect, we believe that the the proper solution for Romania is to stimulate competition and to promote the development of mobile broadband, considering the intense progress of mobile telephony market (over 100% penetration rate).

Meanwhile, in order to support the development of broadband infrastructure and services and to avoid widening the digital gap, we call on government intervention through the Structural Funds (figures up to approximately 84 million). The implementation pattern was completed with representatives from the European Commission. Funds will be designed to cover disadvantaged areas, where there is no currently Internet service providers.

The National Broadband Strategy adopted by the Government for the period 2009-2015 includes some objectives such as increasing penetration rate of broadband connections in households, up to 80% in 2015, increasing the access of the population to broadband electronic communications up to 100% by 2015, growing the broadband use in the small and medium enterprises, increasing the rate of penetration of electronic communication services for broadband in disadvantaged areas in terms of access and increasing the supply of online services for government and business sector.

This strategy also has a number of specific objectives such as connecting public institutions (public demand aggregation), increased use in the public sector, support for the small and medium enterprises in training, configuring and implementing projects on infrastructure or services, increasing accessibility of services, content and applications development, consumer’s education and inclusion of disadvantaged groups of users.

     In addition, considering the undeniable benefits of broadband to economic development, we are prepared to support the inclusion of broadband within the universal service. However, for setting a goal of such importance it is imperative to take into account the disparities between EU member states and therefore the choice of financing pattern to achieve this ambitious target is very important.

     In this context, regarding, we strive to support and finance the launch of competitive and high speed next generation networks by encouraging long term, effective and sustainable private investments and by providing public support for open networks where necessary and appropriate.

     Finally, we believe that innovation through Research & Development in ICT is the best way to ensure sustainable growth. A society focused on the development of information technology and communications will ensure a balanced economic growth and the modernization of the state institutions.

     Thank you for your attention!