From dot.eu to broadband Europe is getting itself connected

Date: 13/02/03

Erkki Liikanen, the enterprise and information society commissioner, spells out his blueprint for boosting e-commerce in the European Union to Peter Chapman

WHAT are the remaining bottlenecks in the EU holding up the successful take-up of e-commerce?

The bottleneck is no longer connection to the internet; more than 90 of companies are already online.

A legal framework for e-commerce has also been put in place. Now we see an increasing interest in upgrading to faster connections, that is, broadband. However, whichever connection is used, there are two more conditions to be fulfilled to get really good use from the internet.

First, companies need to rethink and adapt, where necessary, the way the organisation works when using information and communications technology (ICT) and second, they must make sure that employees and management have the skills to use the internet or ICT.

Can you outline what the Commission is doing to bring about the successful take-up of e-commerce? Can you say in which areas you expect to contribute most - for example broadband or third generation mobile phones (3G)?

There are specific actions in the 'eEurope Action Plan' - such as GoDigital for SMEs, which is about the best way to take-up e-commerce. There is also an eSkills initiative, which looks into the actual ICT skills needed in companies.

There are certainly high expectations for broadband. Being 'always-on' [constantly connected to the internet] makes a big difference. Having a fast connection makes it possible to have much more lively and interactive communication with customers. It also allows innovation, for example in marketing design or team work.

Fast mobile connections, such as 3G, are another area in which expectations are high for both professional and private use. Multi-media mobile entertainment applications, or professional field-service support on 2.5G and 3G phones, are either already available or will be soon.

Many experts are saying there will be a new services and content business once broadband and fast mobiles reach critical mass.

The idea of our initiative - eEurope 2005 - is to both stimulate new content and applications and remove barriers to new infrastructure roll-out, as this means accelerating the demand-supply cycle from both ends.

Security is an increasingly pressing issue, especially since 11 September 2001.

Can you outline what initiatives the Commission is launching to boost network security in the EU and outline the threat that member states are under? Are terrorist threats real or is the risk mainly from organised crime and malicious individuals?

The Commission adopted a proposal this week [11 February] to set up a network and information security agency, whose focus is on the prevention and response to cyber-security risks.

Such risks can come from anywhere.

The point is that we are becoming ever more dependent on networks and computers that manage critical infrastructures, such as electricity and water supply or public transport.

They have become indispensable for the communications of companies and citizens. The agency will help member states work together in a coherent way and aims to become a centre of competence.

The EU is planning its own internet 'domain'. Can you say what effect 'dot.eu' will have on the EU e-commerce market? And when will it be up and running?

The top-level domain dot.eu is in the process of being set up. We aim for it to be operational by the end of March. It should be quite attractive for companies and individuals to be able to distinguish themselves as being European and, therefore, we expect a lot of interest.

The Commission was expected this week to unveil a set of guidelines to regulators in member states spelling out which areas of the communications sector - or 'relevant markets' - might need special rules and regulations to ensure fair competition.

Can you say how this will enhance e-commerce?

One of the aims of the 'Recommendation on Relevant Markets' is to create certainty for investment so that, in the mid-to-long-term, several networks can compete where possible - in other words we aim to have facilities-based competition.

Experience shows that this leads to lower prices, which will stimulate the development of e-commerce in itself.

And it will lead to more choice for companies, again at affordable prices.

For example, a company may wish to have very high availability at reasonable speed, or very high speed, or perhaps need to combine several networks, satellite, mobile and fixed, to achieve flexibility and wide coverage.

What other factors are important in the field of e-commerce - for example in relation to e-government?

There are lots of other issues that come up, in a sense these topics are moving targets. For example, once connectivity is in place the challenge is to go to real productive use.

Once the government services are online - and a lot of progress has been achieved in just one year - the challenge will become one of delivering better quality services.

Another aim is to make proper use of new platforms such as broadband, 3G, digital television and kiosks in order to provide access for more people. [Kiosks are public places where citizens can gain access to information via the internet.]

It is evident now that ICT is a driver for productivity, and moreover, that productivity improvement can be sustained because innovation in ICT has not yet come to its end by a long way.

Erkki Liikanen, the enterprise and information society commissioner, spells out his blueprint for boosting e-commerce in the European Union.