Satellite association urges EC rule changes to qualify for public funding

BRUSSELS: The European Satellite Operators Association (ESOA) is preparing to submit a response to the European Commission's consultation on public financing of broadband to persuade the EC that satellite technology is a viable solution to rural 'not spots'.

Current rules stipulate that, if public money is used for broadband provision in remote areas, it needs to create infrastructure that can be used by other operators in order to avoid a monopoly.

Aarti Holla, secretary general of the ESOA, told V3.co.uk that the organisation aims to prove in its formal response that satellite technology can provide viable competition at a service level.

"We are concerned by various elements of national tenders that are typically drafted to suit terrestrial network architecture, and which do not fit easily with satellite architecture," she said.

"One issue is open access - the principle that public investment into a network must result in an infrastructure that allows multiple operators to compete.

"With satellite, the infrastructure is already in place, but competition occurs at the service level with users able to choose from different service packages offered by satellite service providers."

Oliver Stehmann, deputy to the chief economist at the EC Directorate General for Competition, was asked whether this is an area the EC is considering changing, but said only that the executive body will assess responses to the consultation when it ends.

However, Stehmann did say that a monopoly in one area is better than no coverage, so there may be hope for the ESOA that its demands are met.

Satellite operators had told V3.co.uk earlier that the EC and governments must consider the capabilities of satellite technology, arguing that providing speeds of 10Mbit/s to rural areas is more important than headline fibre speeds of 100Mbit/s that could cost a fortune to install.

The ESOA is co-hosting the Every European Digital event next week at which Neelie Kroes, European Commissioner for the Digital Agenda, will speak on the issue of broadband access and may well expand on the EC's view of satellite broadband.