Provide sufficient funds to achieve DAE Objectives 1, 2, and 3

In document Achieving the Objectives of the Digital Agenda for Europe (DAE) in Italy: (Page 60-62)

funds are available to enable achievement of DAE Objectives 1, 2, and 3. This could include the use of European structural funds and other suitable instruments. Due care must be taken to conform to European State Aid rules.

7. Ensuring progress toward meeting DAE Objectives

Key Findings

The digital economy can play a crucial role in promoting GDP growth, employment, consumer empowerment, and government transparency. The deficits in terms of deployment and adoption of fast and ultrafast broadband that we have identified in this study are therefore appropriately a matter of national concern.

Leadership and concerted attention on the part of the Italian government are called for in order to ensure that Italy achieves its full potential.

A proper institutional setting is called for in order to ensure that monitoring of Key Performance Indicators (KPIs) takes place on an ongoing basis.

 The Italian Government, informed by technological and regulatory considerations, should take the lead in formulating the KPIs.

o KPIs are needed not only for supply, but also for demand.

o KPIs should include not only the factors that would enable Italy to meet DAE Objectives, but also the supporting factors needed to enable fast and ultrafast broadband to deliver real benefits to Italian consumers and businesses.

o KPIs must constitute SMART indicators that address all key attributes, while recognising their interdependencies.

 The periodic monitoring of KPIs, however, should be at arm’s length from the Italian government. For monitoring to be appropriately objective and transparent, it should be conducted by an agency that is somewhat insulated from any political consequences.

Candidate organisations include the Italian NRA AGCOM, the Organo di Vigilanza (OdV), and the Fondazione Ugo Bordoni (FUB). We suggest AGCOM overall. A complementary assessment of relevant fixed and mobile network technology trends could either be assigned to the Fondazione Ugo Bordoni, or else contracted through a public procurement.

 Whatever agency conducts the monitoring, it should have suitable resources in terms of funds and staffing, and should be obliged to report its findings on a predictable calendar (probably annual).

 There is a clear need for transparency, and for enabling informed public discussion and debate; however, much of the data developed by the monitoring process will in its nature be commercially sensitive, and therefore cannot be made public by the government. The government should not force public disclosure, but can invite and encourage commercial parties to voluntarily expose enough to enable meaningful public discussion.

 Putting a monitoring process in place is essential in all scenarios; however, monitoring alone does not assure that DAE Objectives will be met.

 We believe that the most appropriate mechanisms to ensure that network operators carry actual deployments forward can most appropriately be driven by the same public funding that will be needed in any case to achieve DAE Objectives. Public funding will inevitably be associated with commitments; thus, the network operator that accepts the funds is subject to commercially enforceable obligations, rather than to legal or regulatory obligatory obligations, if it fails to carry through on its commitments.

Having completed this evaluation, we are strongly of the view that a proper institutional setting is called for in order to ensure that monitoring takes place on an ongoing basis.

Leadership is called for. Given the number of different initiatives that need to be initiated and coordinated among Italian public institutions, leadership from the highest levels of the Italian government is required (see Section 7.1).

It is not our intent to overly specify how monitoring should be implemented – that is a matter for ongoing consideration by the Italian government. We have, however, chosen to provide a number of hopefully helpful remarks as to what should be monitored (Section 7.1), and how it should be monitored going forward (Section 7.3), and what instruments might be used if progress proves to be insufficient.

7.1. Leadership on the part of the Italian government

If there is one central observation that clearly emerges from our work, it is that Italy is behind in terms of deployment and adoption of fast and ultrafast broadband, and that leadership and concerted attention on the part of the Italian government is called for.

No one seriously questions the importance of the digital economy today. It can play a crucial role in promoting GDP growth,30 employment, consumer empowerment, and government transparency. The deficits that we have identified in this study make clear that Italy is at risk of not achieving its full potential. This is appropriately a matter of national concern.

Many different Italian public institutions have a role to play. Our perception is that each is doing more or less what it has been asked to do, but that the policies overall are not joined up as they need to be. AGCOM has a role to play, but this is by no means solely a regulatory matter. The Ministry has a role to play, but Italian deficits cannot be addressed solely by supply side measures. This is a complex matter of industrial policy, entailing both supply side and demand side aspects. Attention is needed from the highest levels of Italian government in order to ensure that the different strands of policy come together.

Recommendation 15. Create a comprehensive National Broadband Plan for Italy.

In document Achieving the Objectives of the Digital Agenda for Europe (DAE) in Italy: (Page 60-62)