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Europe Calls for Serious Broadband Bandwidth to Boost eCommerce

Posted: 12th Jan, 2012 By: MarkJ
europe mapeuropean union flagThe European Commission (EC) has launched a new action plan that seeks to double the volume of e-Commerce in Europe by 2015, which will apparently require "serious broadband bandwidth" to deliver.

The new plan, which forms a part of the wider Digital Agenda and Single Market Act, proposes 16 targeted initiatives that could see online trade and services eventually account for more than 20% of growth and net job creation in "some" Member States. Thankfully that includes the UK, as well as Germany, France and Sweden.

Neelie Kroes, Vice President of the EU's Digital Agenda, explained:

"[This] means doubling both online sales, and the share of the internet economy in EU GDP [currently less than 3%]. We’ll do this by making it easier, more transparent and more trustworthy to buy online. And by making it an integral part of our single market, so that you can have as much confidence when buying online in another member state as in your own – and can benefit from as much choice and opportunity online as possible. Because, remember, if you can buy from online shops across the EU, you will have – on average – 16 times more choice than if you only shopped offline in your own country!

There’s a lot of strands to this action plan: sixteen, in fact. Some of them are about the kinds of issues I mention above – being able to trust those who supply goods online, to pay for goods and services easily online, to respond to illegal content, and to rely on postal and delivery systems.

But, of course, we’re not just talking about old-style physical delivery of goods: it’s also online “virtual” services like video and music streaming, or online games. Those services need serious broadband bandwidth: and we need to ensure we can provide that infrastructure, through broadband roll-out and spectrum provision. Likewise, we need to look ahead to future developments, and make sure our strategy makes it easy to develop and use cloud services."

Apparently the current gains brought by lower online prices and a wider choice of available products and services are estimated at £9.73 Billion (EUR 11.7bn), which is equivalent to 0.12% of European GDP.

Estimates suggest that if 15% of retail sales were e-commerce and the obstacles to the internal market were removed, the gains for consumers might be as much as £169.69 Billion (EUR 204bn) or 1.7% of European GDP.

The Digital Agenda aims to bring basic broadband to 100% of Europeans by 2013 and superfast 30Mbps+ services to everybody by 2020; with 50% or more using a 100Mbps or faster service.
Europe's New e-Commerce Action Plan
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/10&format=HTML&aged=0&language=EN&guiLanguage=en
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