The European Commission held the first of what promises to be several Digital Agenda Assemblies in Brussels on June 16 and 17. We understand that more than 1,000 attendees were registered for the event, which focused on Europe’s plans for fostering digital networks and services. One of the numerous workshops held during the event dealt with financing and facilitating broadband projects. The satellite industry was well represented at this workshop and emphasized recent European Commission statements about the role that satellite communications will play in achieving Europe’s broadband goals.

The Digital Agenda flows from the Europe Union’s growth strategy for the coming decade. The Commission issued a proposal for this strategy in May 2010. Included among the goals is delivery of sustainable economic and social benefits from a “Digital Single Market” based on broadband access for all by 2013, access for all to much higher Internet speeds (30 Mbps or above) by 2020 and 50 percent or more of European households subscribing to Internet connections of more than 100 Mbps by 2020.

Satellite communications should be part of the mix of technologies or networks that contribute to meeting this goal. The original Digital Agenda proposal referred to the role of satellite, with the statement that “wireless (terrestrial and satellite) broadband can play a key role to ensure coverage of all areas including remote and rural regions.”

The satellite industry has worked hard to keep this message in front of policy makers, to ensure that public planning and subsidies are not uniquely directed to terrestrial operators. That work has paid off, as European Commission officials have in recent months stressed that satellite networks have much to offer.

This message was also noted at the Digital Agenda Assembly in the broadband workshop. Stefano Agnelli, Eutelsat’s institutional markets development director and coordinator of space policy with the European Satellite Operators Association (ESOA) presented a paper titled simply “…including satellites!” A good part of the presentation reflected recent European Commission references to satellite. Thus, ESOA highlighted the statement by Commission vice-president and digital agenda commissioner Neelie Kroes, who on May 31 said before the European Parliament that to reach the ambitious targets it is necessary “to secure investments from all players — incumbent, new entrant, mobile, fixed and satellite.”

Kroes said it already was a great achievement that 95 percent of Europeans have access to broadband Internet infrastructure. But that “still leaves a lot of people — 10 million households” — without such access. In her view, “technologies like … satellite … can be the most cost-effective in such areas where more common, landline solutions are still not an option.”

European satellite operators already have invested in broadband satellite solutions, and the ESOA presentation offered several examples.

The ESOA slides showed the evolution of satellite communications towards better performance and lower terminal/subscription costs. They also focused on the use of public funds for ensuring user access, which is an integral part of European policy. ESOA maintained that subsidizing terminals could be a “sound, user-focused way of using available EU funds to quickly and cost-effectively reach the 2013 target of the digital agenda.”

In fact, satellite broadband already has been used in targeted broadband subsidy programs, as a complement to terrestrial infrastructure.

Nevertheless, satellite infrastructure has not been consistently a part of regional development funds under the Digital Agenda. ESOA noted European Commission data showing that EU Member States have been hesitant to adopt satellite as a complementary solution to the terrestrial backhaul.

Among the reasons for the slow acceptance of satellite solutions are an imbalance in funding between the two digital agenda targets in 2013 versus 2020; misinterpretation of EU rules; and a lack of knowledge of technologies and the services they can provide.

To remedy this situation, ESOA set out specific actions, including EU clarity on eligibility to use satellite solutions, recognition of the differences between satellite and terrestrial network architectures and close attention to procurement rules to avoid unintentional discrimination against satellite solutions.

The Digital Agenda Assembly was an important showcase for satellite communications and broadband solutions. Satellite is working hard to be included in the European Digital Agenda.

Gerry Oberst is a partner in the Hogan Lovells Brussels office.