1 Decision Concerning approval of Government Strategy for the development of electronic broadband communications in Romania for the period 2009-2015 On the grounds of art. 108 in Romania's Constitution, republished,
Art. 1. The Government has adopted the Strategy for the development of electronic broadband communications in Romania for the period 2009 2015,
PRIM-MINISTER Emil Boc 2 ANNEX Government Strategy for the development of electronic broadband communications in Romania for the period 2009-2015 CONTENT I. INTRODUCTORY PART I. 1
Definition of broadband communications I. 2 Anticipated advantages for the development of broadband communication services II.
CURRENT SITUATION ANALYSIS II. 1 Overview on the existing situation on broadband communication services market...
V FINANCIAL DEMAND AND OPTIONS IV. 1 Financial demand for the development program of broadband communication services.
AND ABBREVIATIONS I. INTRODUCTORY PART 3 Electronic broadband communications have become a world wide priority in late 1990s,
on the rapid development of communications and IT technologies as well as on telecom markets liberalization. In a global society undergoing a significant transformation process in the beginning of the 3rd millennium,
the European authorities became aware of the necessity for a common vision in modernizing society and development of European Economy competitiveness.
and policies that should be a proper answer to challenges generated by the process of European population ageing as well as by a fierce competition globally.
In achieving the fundamental objectives of Lisbon Strategy sustaining economic growth and creation of new working places one of the main instruments identified was the development of a knowledge based economy corroborated with incentives for the IT and communications sector (ICT).
Thus, the advantages of using ICT services and equipment over creation of an information society able to stimulate the growth of economic competitiveness,
and of social cohesion were acknowledged generally. The action plans (e-Europe 2002, e-Europe 2005, i2010) that envisaged the implementation of the objectives set in the Lisbon Strategy,
as an info disseminating environment and supplying services and content, creating new markets, thus contributing to a growth in economic productivity.
o Creation of a sole and competitive market for the information society. o An increase of investments in research concerning ICT o Promotion of a comprehensive information society Having in view that the spread
an increased use of broadband communication services was identified as major objective. 4 In this context, it became obvious that Romania also needs a political document
and a strategy at national level, meant to support the development of electronic broadband communications,
so as to become vectors of lining all relevant resources to promote broadband services in Romania. The document was structured on five main components consistent with the analysis major directions:
Definition of electronic broadband communications concept and presentation of the anticipated advantages of developing broadband communication services An analysis of the current situation in Romania Definition of general principles and strategic
objectives Elaboration of the action plan Identification of the financial demand and options During the options elaboration strategies and definition of priority intervention measures, there were several consultations with the main competent authorities
The current strategy is based on data in the Diagnosis Analysis Report on communication services in broadband (Roland Berger 2006)
and on those supplied by the National Authority in Communications concerning coverage with electronic broadband communications. 5 I. 1 Definition of the broadband communication concept Broadband, beyond its lexical or technical definition, irrespective of the transmission means (cable, radio,
The essence of the concept concerning broadband communications can be understood only if it is interpreted as a set of technological opportunities that allow rapid transmission of a huge volume of data,
so that the access to a wide range of digital services may be ensured. The band width that is required by different on-line services varies significantly
depending on the respective services. The National Authority for Communications (ANC) establishes a general definition which is based only on the quantitative dimension of the Internet connections,
emphasizing the transfer speed of 144 kbps as a threshold for delimiting connections in broadband as compared to those in narrowband.
In order to monitor the development of broadband access availability we must complete the general definition with quantitative indicators that can be changed gradually depending on the demand modification at the level of the end-user,
but also depending on the offer of applications and services. The uniform and final definition of broadband communications is worsen by aspects as dynamism of technological innovation
the different development levels, the level of coverage with infrastructure networks as well as the difference as concerns the applications popularity.
Taking into consideration all these aspects, the following concept shall be used in the process of providing electronic broadband communication services:
Broadband connection represents that type of electronic communication that, by means of a multitude of available technological options, ensures permanent access to Internet,
at a transfer speed of at least 1 Mbs (value increasing progressively) and a monthly availability degree of at least 98,
Percentage of the population with no access to broadband communications: Percentage County Number of counties 50%-80%Vâlcea, Vaslui, Mehedini, Salaj, Neam, Gorj, Olt, Buzau, Braila, Vrancea, Giurgiu, Bacau, Botosani, Covasna
into consideration the data in the table above and the fact that there must be a clear definition of areas where access to electronic broadband communications is limited due to different circumstances,
000 inhabitants at most, where at least one internet services provider is present. I. 2 Anticipated advantages for the development of broadband communication services Benefits of broadband communication access do not materialize by means of activities performances.
The later can be executed without access also, but with far more difficulty, in a restricted area, geographically limited.
7 unemployment, transportation or environment. Another exemple is e-education that represents an alternative to the traditional learning method,
Access to broadband communications shall also play an extremely important part for applications that shall emerge as a consequence of the occurance of new needs generated by the information society and knowledge based economy.
Measurable benefits resulting from the access to broadband communications, include: An easier and more rapid way of looking for information information is unlimited fully available
Simplifying relations among citizens, enterprises, companies, businesses, public administration and other entities; Creation of new opportunities on labour market (example, work at home;
A more efficient management of enterprises, especially of small and medium sized enterprises, which leads to an increase in efficiency
and develops competitiveness; New opportunities for entertainment or cultural life; Improvement of population's life quality in rural and disadvantaged areas by supporting development of tourism;
Implementation of telemedicine communications among doctors for sharing of experience From the effects point of view, we consider that broadband communications shall become conspicuous on the following levels:
Education: Broadband communications can contribute to an increase in Romanian school's value by implementing new teaching learning methods (elearning),
the possibility to interactively communicate with teachers and students all over the world or to increase the degree of specialization of employees at companies'level by developing programs of E training
and e-Coaching. 8 At the same time new opportunities arise for the knowledge level of universities by the possibility to develop
At the same time it supposes the existence of broadband communication infrastructure as well as certain human resources experienced in new technologies,
Successful implementation of communication technologies has tangible effects in increasing the degree of innovation by the possibility to virtually aggregate best resources and ideas all over the world.
The announced investments by companies as Infineon Motorola, Nokia or Ruwel in research-development centers in Romania are relevant for illustrating the potential of research-development sectors and ICT in Romania.
Economy: The interconnectivity between the business environment and that of digital communications is still at an initial stage,
and the development of new business models is depending on attracting a critical mass of users. In the context of Romania's current development and its opening towards the European and global economy, the business environment shall become a major consumer of broadband communications.
To that effect, we try to create a sort of mutual enticement where the business environment development leads to an increase of the offer and, implicitly,
to stimulate competitiveness and added value services. In addition broadband sector development shall make Romania attractive as a destination for foreign investments.
Broadband communications as facilitator of ICT development favors the creation of new working places and an increase in GDP/inhabitant, estimating that between 40%and 50%of productivity growth in latest years is due to ICT. 9 Secondly,
broadband communications allow a revolution in the business processes. For instance, it is no longer necessary for production facilities to be in close connection to research as communication can be reached virtually with the same results in most cases.
Broadband communications also contribute to e-business development with major benefits by a significant reduction of transaction costs and intensification of interaction speed among companies.
Cultural-entertainment activities: Electronic broadband communications can have a significant impact on cultural and entertaining activities by providing an increased availability, by changing consumers'behavior as well as by providing access to a great number of options.
Also, while broadband communications performances increase, the on-line environment interactivity grows attracting users. From the point of view of the main influence zones, broadband communication benefits are to be found at the level of the public administration, private companies, communities and at the level of the ordinary citizen.
By facilitating access both internationally and nationally as well as by their possibility to disseminate content rapidly,
broadband communications can be a vector for promoting cultural values and diversity in Romania's context (the importance of Romanian cultural patrimony is recognized including also certain touristic objectives as the Danube Delta, Monasteries from Moldavia, Sighisoara historical center, Dacian fortresses in Orastie
Mountains etc. in the world cultural patrimony by UNESCO). Thus, we can develop data basis (e-Tourism, e-Culture),
that favor the development of the digital content of cultural type, including in tourism field by introducing necessary info for promoting national attractions thus contributing to the growth of Romanian values and of the number of tourists.
Public administration: Public administration is the provider of public information, services as tax collection, education and health etc.
all of major importance for citizens. Technologies and broadband communications can improve the public administration flexibility
and efficiency, can contribute to an increase in availability and access to government services. The public administration development of those electronic services meant for the citizens demand, for rendering efficient the citizen time, in terms of local and administrative tax payment,
of transmitting data and answering in electronic format as well as of giving useful info as regards certifications and authorizations (e 10 Gouvernment and e-Administration) and rendering efficient the public health services by setting
up data basis nationally concerning health of patients in hospitals and at the level of medical clinics (e-Health) and developing telemedicine services that lead to a permanent monitoring of patients with heart diseases
, diabetes and other diseases as well as of handicapped people. Private companies: For companies broadband communications represent a facilitator of E-business applications
and practices, creating new business opportunities and helping companies to get high productivity based on an improvement of access to information and transactions.
Both for companies and employees broadband communications are meant to reduce the importance of localizing by allowing the establishment of offices in small,
rural or isolated localities as well as by facilitating teleworking. For the Romanian companies electronic trade development can bring important advantages namely significant reductions of transaction costs and increase in interaction speed with business partners.
Secondly, broadband communications allow business processes progress contributing to an increase in competitiveness of Romanian companies in Central and Eastern europe (CEE),
and globally (facilitating internationalization of local companies, decentralizing enterprises'functions as production, marketing etc.).Communities:
For small, rural and isolated communities, broadband communications development can favor economic and social integration by facilitating access to goods and new, superior services as well as participating facilities in digital economy or information society.
For the common consumer, besides facilities provided by broadband communications already mentioned (as e-Education, teleworking etc.
the beneficial effects materialize in the increased access to the interactive content, interconnectivity of different equipment (whether it has or not the communication component) or personalization of consumption.
II. CURRENT SITUATION ANALYSIS II. 1 Overview on the existing situation on broadband communication services market During the last two years we noticed a remarkable evolution at the level of electronic communications market as regards internet services providing.
If mid 11 2006, we had 2, 66 million connections of internet access, mid 2008 the number increased to 9, 25 millions, approximately 3. 5 times more connections.
This particular increase is due to a plurality of economic and social factors: technological development led to a significant diminish of costs for purchasing personal computers
and the information available at the level of internet networks as well as the continuous development of services using as support the internet created a trend for young people and even a way of life.
All this made possible this significant growth of internet access connections and especially broadband communications over such a short period of time.
Statistical data concerning electronic communication market in Romania in the first half of 2008, reported by providers to the National Authority for Communications,
despite the diminishing of economic growth perspectives in general, broadband internet development continued at EU level with an increase of 19,23%during July 2007-July 2008.
In Romania, the penetration rate of broadband communications services continues to grow in 2008, but it is still one of the lowest rates in European union-10,52%at the level of the population and 27,04%at the level of households.
reduced use of personal computers (only 35%of the households have access to a PC), a reduced coverage of electronic broadband communication services (30%of the population lives in cities with no coverage of broadband communication services) and low
Structure of the total number internet dedicated access connections, depending on customers'category. Evolution during 30.06.2006-30.06.2008 Source:
Major differences between penetration rates of broadband networks in the urban and rural environment; Access problems on local loop (implementation of unconditioned access on the local loop,
Volume of investment can reach a reduction because of the current economic crisis; The lack of a common approach at government level for implementing projects,
and scattering of public resources Opportunities The advantage of late development: the domination period of narrowband connections can be reduced significantly;
17 Possibilities of rendering valuable the high potential demand aggregation of public demand, occurence of new corporate customers;
Positive characteristics of consumers opening towards innovative services, high digital alphabetization of young people; Growing availability of financing resources;
SWOT analysis concerning broadband services market indicates that, although there are several advantages and opportunities for developing these services,
in cases of a lack of intervention measures adapted to Romania's existing problems, the risk to deepen the digital gap becomes even bigger
The government strategic plan proposes an acceleration of the development rhythm of broadband communication services (identified as one of the most important facilitator of society modernizing
and increase of economy's competitiveness), by encouraging those activities that may lead to reducing the areas identified as failure zones.
In other words, the strategy proposes a set of recommendations aimed at improving the situation of certain activities that have influence on broadband communication services,
we had in view removal of certain access barriers to broadband services. One of the principles at the basis of this approach is guaranteeing free access to a large range of services with high social and geographic availability.
This supposes mainly the existence of a free market, guaranteed by observing the nondiscrimination principle as concerns treatment applied to network providers
or electronic communication services and encouraging a competitive market as regards the offer diversity, tariffs and quality of services.
So, the national broadband communication strategy acknowledges the importance of market instruments in developing broadband services.
and technologies able to meet the specific needs of communication of different groups of users
and offers the possibility to choose the most efficient method of communication in a given situation.
This multitude of communication resources is even more valuable having in view the rapid change of society and its evolution and implicitly its needs of communication and information.
With a view to absorb efficiently the available government funds for implementing the broadband for developing broadband communication services,
Thus, it is necessary to coordinate all government projects in the field of communication by a single authority
In this way private investments shall be encouraged, competition and reduction of prices shall be promoted as a result of the competitive level development in the field of broadband communications.
Another important principle is to ensure the development of both infrastructure and services to generate the so-called virtuous circle creation of networks followed stimulation of services demand by developing a new content,
leading to a new broadband communication demand, that shall justify investments in infrastructure and the circle starts from the beginning. 20 Also,
we envisage to observe the universal right of access to electronic communication means and to promote the specific interests of disadvantaged users
in order to obtain a maximum of benefits from broadband services in the sense of including them socially
III. 2. Objectives In order to ensure success for broadband communication strategy we identified and formulated a series of clear and comprehensive objectives,
which the strategy was developed refer especially to ensuring access to broadband services, providing relevant content and ensuring necessary preconditions for information, education and security.
Providing relevant content-Percentage of the population using on-line services-Number of users of elearning services-%of companies with their own web site-%of companies using E-business type applications-Number of e-Administration
services available on each relevant field of activity-Solicitations or forms processed on-line Ensuring information,
growth of availability and degree of services use, encourage development of informational content or ensure an adequate framework that may allow the improvement of competitive and
investable environment) and after the diagnostic analysis of broadband communication market we identified 10 strategic objectives and six specific ones.
Growth of the penetration rate at the level of households, of broadband connection services up to 40%in 2010 and up to 80%in 2015;
Growth of the rate of access to electronic broadband communication services at the level of the population up to minimum 100%until 2015 Connection and increase in the use of broadband services at the level of SMES;
Growth of the penetration rate of electronic broadband communication services in disadvantaged areas from the access point of view.
Growth of on-line services offer for government and business sectors. The specific objectives refer both to demand stimulation
and electronic broadband services offer for the public and private sector: 22 Connection of public institutions (public demand aggregation) Increase in use at the level of the public field Connection and increase in use at the level of SMES Increase in services'availability
Development of content and applications Education of consumers and inclusion of disadvantaged groups of users III. 3. Monitoring indicators Implementation of measures corresponding to each objective shall be monitored by means of specific indicators.
while meeting the fundamental objectives of the national strategy for broadband communications Key indicators must offer a clear panoramic image on the sector's development and indications as regards the necessary actions for accelerating progress (if the case).
and measurable/quantifiable so that they may become a monitoring/management instrument of the broadband communication sector development Transparency indicators must be transparent,
40 80 Access rate of broadband services at the level of the population 10,5 (2008) 20 100 Percentage of persons that use Internet for interacting with public authorities 2. 6
10 50 Percentage of use of e-government type services by natural persons (demand) as a whole 5 20 50 The rate of commercial operation on-line (e-commerce) 1
Also, with a view to assess the dynamics of investments in infrastructure projects of broadband type we shall monitor the number of projects
and adjustment of initiatives priority for implementing broadband communication strategy during consultations with the Working group for implementing the national strategy for the development of broadband communications.
We shall focus especially on extending the coverage area of broadband communication in disadvantaged areas.
the number of communities connected in these areas that benefit from broadband communication services after implementing the strategy.
ACTION PLAN IV. 1 Organizational implications of the strategy The strategic plan recognizes initiatives with impact on broadband services development already executed
we noticed the existence of several initiatives of the state institutions, that influence directly or indirectly the evolution of broadband communication services.
In addition there is no overview on all initiatives the result being a lack of transparency on opportunities they offer both from the potential beneficiaries'perspective and even of the authorities'perspective.
which shall implement the government strategy concerning broadband communication services development. A representative example to this effect is Italy,
where two entities were set up to implement the strategy of broadband communication development: Infratel Italy, a company set up by the Ministry of Communications
and responsible for the implementation of initiatives envisaging promotion of broadband communications'infrastructure development and elimination of the technological gap among regions Innovazione Italy,
a company set up by the Ministry of Innovations and responsible for implementation of initiatives meant to develop applications with digital content
and broadband services. 25 Relevant examples can be found with other EU member states as Ireland, Hungary and Finland.
In the case of Finland, the working group responsible for implementing the strategy of broadband communications development consisted of The Ministry of Internal Affairs
Ministry of Finance, Ministry of Education, Ministry of Trade and Industry, FICORA (Finnish Communications Regulatory authority), Finnish Competitiveness Authority, Consumers Protection Agency, Confederation of Finnish Industries
, Fi-Com (Finnish Federation for Communications and Teleinformatics) and Finnish Local and Regional Authorities. In Hungary the national strategy implementation for broadband communications and ensuring electronic broadband communication spreading is ensured by Telkes Tanácsadó Rt consortium, Colosseum Budapest Kft. si Ariosz Kft.
In the case of Ireland, a company, part of Hutchison Whampoa, was selected after tender and is responsible for administrating the Broadband National Plan
which has as purpose providing broadband services in uncovered areas (disadvantaged zones). In Romania, the role of operational entity shall belong to the Working group set up by the decision of the Committee for Promoting the Information Society,
a group that shall monitor the implementation of projects regarding broadband communication infrastructure development as support for promoting informational services.
At the same time, this operational entity shall ensure the communication/interface with parties on the market which are involved under the form of a sole management of relations point with these parties as concerns the broadband communication sector.
2. Monitoring the implementation of infrastructure projects and broadband services bigger than EUR 100,000; 3. Establish the main updating ways for central administration using methods
3. identification of specific needs for disadvantaged communities that can be solved by IT&C applications with a view to aggregate them in packages that can stimulate the demand for broadband type services.
The purpose of regional development for broadband communications was to render economically viable networks and services providing even in areas where such an enterprise is not commercially profitable.
For achieving this purpose we must draw comprehensive and well coordinated regional plans that should contribute to extend broadband communication networks in disadvantaged zones as concerns the access.
The Working group shall also have the following specific tasks: -to establish of opportunities and needs for legislative and regulatory initiatives necessary for a good progress of the transition process;
-to conceive and develop subsidy programs for equipping the disadvantaged categories of the population with reception equipment;
which shall be able to ensure also an optimal coordination of all initiatives that cooperate to meet the objective of broadband communication development and of those with implications to this effect.
Observing the principle of functions separation regulation of broadband communication sector versus operation of telecommunication projects and effective implementation of demarches provisioned for in the strategy A higher degree of visibility of initiatives from the beneficiaries perspective,
. 2 Methodology and monitoring of the implementation of the strategy To be able to put into practice the strategy for developing broadband communications,
To this purpose a Working group shall be set up consisting of representatives of the Ministry of Communication and Information Society, Ministry of Education, Research and Innovation, Ministery of Administration and Internal Affairs, Ministry of Public Finance, Ministry of Economy
by notifying the Ministry of Communications and Information Society, shall appoint 3 representatives each for the working group,
Cconsidering the provisions of art. 53 in Government Decision12/2009, by which the Ministry of Communication and Information Society is appointed as sole public authority in organizing and coordinating the programs and projects of electronic governance and electronic administration
as well as the different degree of priority, we must underline that the financial calculated demand represents an initial estimation.
Financing demand for the development program of broadband communication services For meeting the objectives set,
the Working group for implementing the national development strategy of broadband communications shall have to evaluate the financing demand
a closer estimation to the real financing demand can be obtained by substantiating on costs which can be done only by a clear dialogue between all working group representatives and the operators on the communication market.
This dialogue shall also emphasize their interest to participate in achieving the proposed options, which shall allow a good quantification of the necessary contribution from the authorities, by public funds respectively.
Summary of the financing demand for implementing government strategy concerning broadband communication services development Major objective Instruments Financing demand by the national development program of broadband services
140 Cofinancing infrastructure projects in failure areas 130 Granting fiscal incentives for infrastructure projects in the failure areas. 10 Extensive growth of broadband services availability Development
of Hotspots at the level of towns (public markets, libraries, public places, etc) 5 Connecting public institutions to broadband services 85 Introduction of on-line services at the level of the public
Communication, instruction, etc) 35 TOTAL PROGRAM 1. 250 IV. 2 Financing means In drafting the financing plan,
the Working group shall keep in mind the opportunities that may occur on medium term: The possibility to include broadband services in the universal service field.
At the European level such a proposal already exists, and Romania, as a member state, is in favor of this opinion.
projects financing for implementing broadband services and infrastructure can be sustained from the universal service fund;
The opportunity to conclude public private partnerships with actors of the market interested in participating at co-financing projects for implementation of broadband services and networks,
whose objective is the create the conditions to encourage private investments with internal, but mostly external resources
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