The European Commission launched a public consultation on how to cut the costs of setting up new networks for high speed internet in the EU. According to the Commission data, for every 10% increase in the broadband penetration the economy grows by 1 to 1.5%. The European institution also believes it could cut the cost of broadband investments by a quarter.

The European Commission is seeking views on how to reduce the cost of rolling out high speed internet through a recently launched public consultation. It wants to gather views on this issue because it considers that high-speed Internet underpins all sectors of the economy and will be the backbone of the Digital Single Market. For example, also in relation to the Digital Single Market, the Commission presented an action plan for the development of electronic commerce in the EU in January 2012.

According to Commission's figures, up to 80% of the total broadband investment cost is related to civil infrastructure works. The cost is so high because of a lack of coordination of civil engineering projects, insufficient re-use of existing infrastructure and lack of cooperation between the various actors. It therefore seeks views on obstacles to invest in broadband infrastructure; ways of improving the use of current infrastructure; coordination of civil engineering works; measures increasing coordination between competent authorities and simplifying permit procedures; and 'readiness' of new buildings for high speed internet infrastructure.

The contributions to the public consultation can be made until 20th July 2012. The Commission expects that results will contribute to reducing the costs of investments and ultimately the final retail price of broadband. Besides, the Digital Agenda of Europe sets broadband targets of 100% broadband coverage by 2013 for all Europeans and speeds of 30MBps for all with at least 50% of the European households subscribing to Internet connections above 100MBps by 2020.