Europe recognises that it needs to be at the forefront of the digital revolution if it is to stand a chance of competing with the US and the rising economies of Asia.

As part of the UK presidency of the European Union, Department of Trade and Industry minister Alun Michael hosted a conference for business leaders, technology companies and politicians from across Europe last week to discuss what is needed and how it is to be achieved (Computing, 8 September).

The i2010 plan, published by the European Commission in June, outlines a general framework for progress towards a ‘European information society’, with ubiquitous consumer access to high-speed broadband infrastructure, a robust content creation industry, Union-wide regulation of cross-platform media, improved investment in research and development (R& D), and interoperable software and services (see below).

There has been significant progress in recent years, not least in the rollout of broadband infrastructure, but advances must continue to remain competitive, Michael told Computing.

‘It is not enough for Europe to say “we are making progress”. It has to accelerate that activity if it is going to compete with the ambitions of countries such as China and India that are no longer merely looking to provide cheap places for doing business, but aspire to be at the cutting edge of IT,’ he said.

The danger is that Europe will lose its headstart, says Michael.

‘If we improve at a slower rate than other markets and economies, we will lose the competitive advantage we have through having such a high level of penetration of mobile, broadband and so on.

‘We need to press on with developing an open and competitive market, improving access to new technologies and services, and accelerating the use of broadband,’ he said.

Business groups are unanimous in their support of the principles of i2010. But there is considerable scepticism about the details behind the generalities.

Intellect, the supplier trade body for the IT industry, has particular concerns about the commitment to a ‘converged regulatory policy’, which would create a pan-European framework governing the development and dissemination of broadband media content.

‘The strategy advocates policy convergence, but our concern is that this is just talk,’ said Intellect public affairs director Tom Wills-Sandford.

‘A good example is the “TV Without Frontiers” plan to revamp an ancient European Commission broadcasting directive. While you would assume it would be updated for the new world of non-linear services, essentially what they are doing is planning on applying existing regulations to online services.’

The implications are considerable, says Wills-Sandford.

‘What Europe needs is a vibrant market for digital content and applications, supported by a robust communications structure. Without regulatory policy convergence, we won’t get it,’ he said.

Unless the Commission gets the regulatory environment right, the UK’s strong content market will suffer, according to Jim Norton, senior policy advisor at the Institute of Directors.

‘A significant worry is that the European Commission, in trying to do what it thinks is right, may well have the reverse effect and drive the content industry offshore. We have an awful lot of content creation in the UK and it would be a great shame to see that killed off,’ he said.

The Confederation of British Industry (CBI) similarly endorses the issues raised by i2010, but questions the Commission’s approach.

‘The EU has already committed to doing most of the things in i2010 under the Lisbon Agenda, so we’re disappointed there’s nothing more about what will make the difference this time around,’ said Jeremy Beale, CBI head of ebusiness.

The strategy lacks an integrated approach, he says.

‘It is a list of standalone items, when in reality we have a highly interdependent environment which businesses approach in an overall way, not in segments. If the Commission really wants to help EU industry to be as effective as possible, it needs to think in a more integrated way.’

The aim to promote broadband and diverse content is laudable, but needs lower prices and co-operation between suppliers, says David Roberts, chief executive of blue-chip user group the Corporate IT Forum.

‘The local supply of broadband has to be freed up and made readily available at a price people can afford,’ he said.

‘After that is the even bigger obstacle of developing interoperability between the software products and tools that will exploit the infrastructure.’

What is i2010?

The European Commission’s i2010 strategy was published in June by Information Society and Media Commissioner Viviane Reding. The five-year plan is part of the Commission’s renewal of the wider Lisbon Agenda to improve EU growth and employment.

i2010 aims to ensure that the EU maintains its competitiveness in the global knowledge economy. It has three policy objectives: the creation of an open-pan European market for information services; the increase of EU IT R &D investment by 80 per cent; and the closing of Europe’s digital divide.

At a follow-up meeting in July, the IT and media industry agreed six focus areas:

* Intellectual property rights

* Pan-European regulation of cross-platform content and services

* Continued investment in broadband infrastructure

* Co-ordination of radio spectrum policy

* Improved public take-up of broadband services

* Increased R&D investment.