Local authorities have urged the European Commission to clarify anti-competitive rules which they claim are stifling efforts to reduce the digital divide for poorer residents.
The EU says it is currently against competition rules for municipalities to provide free broadband and wireless access, if there are private suppliers in their area. But councils say they need to increase take-up to boost skills and encourage business investment.
At the Wireless and Digital Cities conference in Barcelona last week, Lucilla Sioli, head of the economic sector at the commission’s IS and media directorate, was pressed by delegates to clarify the rules. She added: ‘We are in discussion as to whether this Directive should be modified. There will be a debate on this issue next year.’
Current rules say broadband is not classified as a ‘universal service’. The only test case so far involved Prague City Council, whose project for a publicly-funded wireless network was considered to distort competition because there were other commercial providers in the area. In the end, the EC gave it the green light on grounds that there was no profit and the network was limited to public service use only.
David Parr, chief executive of Halton Council, said his council was aiming to create a wireless network across the borough to boost skills and encourage business investment, but had been advised free broadband access would fall foul of EU rules. He added: ‘We’re talking to providers about creating a wireless cloud over the borough which will enable us to attract business and put resources into skills.
But, while there is 100% access to broadband on Merseyside, the take-up in Halton is only 25%.
Birmingham City Council deputy leader, Cllr Paul Tilsley, said: ‘Successful cities need excellent connectivity, and wireless infrastructure is essential. We’ve got a £10bn GDP gap, and we can only close it with higher skills and productivity.’
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