Bridging the digital divide by supporting digital infrastructure for smart and sustainable regions

Workshop Summary

The European Broadband Competence Offices (BCO) Network Support Facility (BCO-SF) organised an event during the 2024 EU Regions Week, together with DG AGRI and DG REGIO, on the topic of bridging the digital divide through investment in digital infrastructure to foster the development of smart and sustainable regions.

The event offered the opportunity for participants to learn more about how Cohesion Policy can play a pivotal role in addressing regional disparities in digital connectivity, which impact on social cohesion, economic opportunities, and regional competitiveness across the EU, as well as to explore examples of best practices from across Europe, including insights from the LORDIMAS initiative.

The workshop was moderated by Ashya Lane-Spollen, Deputy Lead of the BCO-SF. Keynote speech by Ms Pirita Lindholm, Director at ERRIN - the European Regions Research and Innovation Network.

The speakers were:

- Mr Markku Markkula, Vice-President, Committee of the Regions

- Ms Catherine Wendt, Head of Unit, European Commission - DG REGIO

- Ms Marie Clotteau, Advisor in charge of environment, climate and agriculture, Grand Est – Europe, the region’s EU representation

Interventions

In her keynote introduction, Ms Pirita Lindholm, Director at ERRIN - the European Regions Research and Innovation Network, underlined the importance of initiatives like Living-in.EU in bringing together local, regional and national governments and helping them to engage their stakeholders in the digital transformation. She noted that regions can have a vital role, particularly in scaling developments. Ms Lindholm highlighted the need for a more connected innovation ecosystem in Europe, to allow greater regional competitiveness. She noted the value of digital innovation hubs and regional innovation valleys, but underlined the need for a stronger framework, in which other relevant EU policies, such as industrial and research and innovation policies, would help to mobilise different industries’ related instruments to support digital transformation and tackle the digital divide.

Ms Lindholm concluded by saying that, although funding is needed for infrastructure and technology, it is essential to also bring together the different actor groups to collaborate, as well as to tackle issues relating to governance, to create the right conditions for investment.

In his intervention, Mr Markku Markkula, Vice-President of the European Committee of the Regions, stated the need to address the systematic challenges, viewing cities and regions as platforms for citizens and industry to create value and offer services. Digital connectivity and digitalised systems are essential to allow this, and to ensure that all have access to the knowledge and resources available digitally. Mr Markkula gave the example of cities collaborating with industry and other stakeholders to overcome their specific challenges and meet their local needs, by embracing and creating new processes, rather than simply digitalising established ones. He emphasised the value of taking a whole-of-community approach, and of knowledge sharing and co-creation.

Mr Markkula concluded by highlighting the instrument, LORDIMAS (Local and Regional Digital Innovation Management and Advisory Services), an initiative of the Committee of the Regions with the objective of fostering digital transformation across cities and regions through an interactive tool “helping local and regional governments to understand where they are in their digital transformation journey”. By harnessing the collective expertise and insights of local and regional stakeholders, LORDIMAS aims to establish tailored approaches that move beyond generic digital roadmaps, a strategic shift that is essential for effectively achieving specific digital objectives and addressing the unique needs of communities. It provides examples on how aligning digital initiatives which require connectivity can drive sustainable growth and improve regional and local competitiveness as well as the quality of life. As Mr Markkula underlined, the key is to enable not only benchmarking but “bench learning”.

Ms Catherine Wendt, European Commission Head of Unit in DG REGIO, drew attention to the need for further investment in order to reach the EU’s gigabit and 5G targets, particularly in less developed regions where market failure requires public funding to intervene. Ms Wendt underlined the importance of this need, as the digital divide is a cause for concern from the economic as well as social and territorial cohesion perspectives, noting that technology is a driver of economic convergence. Ms Wendt stated how the impact can be felt on citizens’ ‘right to stay in a place they call home’, particularly in regions that have fallen into the “development trap”, whereby less developed regions are unable to catch up and become digitally marginalised. She stated, “this is where we believe that we need to intervene, to make the difference, and digital technology and connectivity can really be a key driver in this”. She underlined here the need to address not only infrastructure but also skills and the digitalisation of businesses and public services.

Ms Wendt noted that one of the key challenges experienced in less developed regions is the lack of capacity to prepare digital infrastructure projects, particularly in navigating regulatory requirements and dealing with commercial complexities. She encouraged stakeholders to reach out to their national or regional Broadband Competence Office, whose mandate includes supporting project promoters on overcoming these and other challenges relating to broadband deployment projects.

Ms Wendt concluded by addressing the wider technological and competitive context, stating that “technology is evolving over the coming years, and 6G, AI and Big Data will all remain crucial for regions to stay competitive, resilient and sustainable in a digitalised economy. Again, this underlines the need for reliable high-speed connectivity for every EU citizen and business”.

Ms Marie Clotteau, Advisor in charge of environment, climate and agriculture at Grand Est – Europe, the region’s EU representation, shared the example of the French Grand Est Region’s broadband infrastructure deployment project, which was made possible through Cohesion Policy funding. The project received €33 million in ERDF funding through the operational programmes of Alsace (€9 million) and Lorraine-Champagne (€24 million), which were separate regions prior to 2016. The project was launched by the region in 2021, specifically to address market failure in serving these areas. Completed in 2022, it succeeded in bringing fibre access across the region’s entire territory, which is 94% rural, with 89% of towns and villages having fewer than 3500 inhabitants. As an average across the territory’s rural areas, 66% of inhabitants have access to fibre, while in some areas this reaches 80%. By targeting the whole region, the project created a more significant market to attract private operators to join and invest. Ms Clotteau also noted that the network has enabled the implementation of use cases that span communities, such as a collective approach to CCTV networks, whereby multiple municipalities share surveillance services; the monitoring of school and sports equipment across communities; and the management of water consumption, allowing implementing more localised and informed restrictions in times of drought, managed in real time. Ms Clotteau highlighted the development by the region of a Rural Pact, a policy measure aiming to provide the support needed to develop and implement more such services.

Ms Clotteau concluded by underscoring the need to connect and take these initiatives further, taking a holistic approach in order to ensure that the infrastructure has the impact that is needed for the region and its inhabitants: “We have built this whole ecosystem thanks to Cohesion Policy, which provided the foundation. Now we need to continue expanding digital services and ensuring that everyone can benefit from digital inclusion. For example, we’re using ESF (European Social Fund) funding to train local residents and businesses to fully utilise these new digital tools”.

Panel discussion

In addressing how local and regional governments could be better supported in accessing Cohesion Policy funds for broadband infrastructure, making the processes easier and more adaptable to local needs, Mr Markkula underlined that, because there is a better understanding of local needs at local level, there needs to be more flexibility at that level for how Cohesion funds are used. This is key to delivering real impact: not only would it enable addressing the requirements and demands of specific contexts and communities, it would also ensure the most adapted services are put in place as well as actively leveraged by the local ecosystem.

In considering the main obstacles that regions face when implementing digital infrastructure projects, and how Cohesion Policy can help regions avoid being excluded from competition, Ms Wendt emphasised that the key hurdle is lack of experience and capacity in implementing these projects. This is why the Commission is not only targeting support to broadband projects but also to structures that implement them, such as BCO Network. In terms of regions remaining competitive, Ms Wendt drew attention to the twin challenges of the digital divide as well as the innovation divide, noting that Cohesion policy seeks to provide a framework, based on common challenges, that regions can adapt to their specific needs. “We provide the support and flexibility for local actors to decide what’s best for their area. Our hope is that Cohesion Policy can add a ‘place-sensitive’ dimension to broader policies, like innovation and industrial policy, ensuring that local sensitivities are taken into account and that regions have what they need to develop sustainably.”

Ms Lindholm reflected on the importance of a place-based approach, noting that Cohesion Policy is one of the few policies that does integrate this sensitivity that enables its vision to have greater impact. She explained, “When we talk about digital or innovation policies, the digital divide is one aspect, but more broadly, it’s about ensuring that Europe thrives by strengthening regions in the areas where they excel”. With this understanding, “a place-based perspective is critical to ensuring Europe’s future competitiveness”.

Expanding on regional approaches to addressing local needs, Ms Clotteau explained the Grand Est Region’s Rural Pact policy initiative, which dedicates €800 million specifically for remote areas, with the aim of addressing essential needs through concrete measures targeting healthcare, business attractiveness, training of people, mobility and employment, among others. She noted that many of these are only possible with the presence of digital connectivity.

Concluding remarks

The moderator, Ashya Lane-Spollen, Deputy Lead of the BCO-SF, summarised in conclusion:

“There is a clear need for targeted investments, collaborative governance, and continuous capacity building. There is also a real need to leverage local strengths but also to share that knowledge across regions, across municipalities and across borders. We have so much experience, but it is too often segregated both in our own specialty areas as well as our different geographic localities. This is why we need a more networked approach: so that we can bring everyone along on the journey to digital inclusion, and smart, sustainable and competitive growth; helping everyone get the resources and support and the access to knowledge that is ultimately freeing.”