• • • • • Expensive and inaccessible basic access. Insufficiently built-out and available independent optic network throughout the country. The insufficiently developed and regulated wholesale markets for broadband internet via the current copper infrastructure is the main reason for non-existence of competition in the ADSL market, as well as in the field of triple play services. All construction works (channels, placement of antennas, access to users) for communications services are put into the category of first class construction works, according to the Law on Construction, which unnecessary complicates the construction of infrastructure (especially access to end users) which prolongs the penetration of broadband internet And makes it more expensive. The distribution trunks of cable networks are predominantly of copper which make their digitalisation and the offer of advanced triple-play services more difficult. II.7.2. EU Trends and Strategic Determinants According to ECTA and EUROSTAT19 the average of penetration of broadband internet on the level of EU-10 (newly admitted countries in the EU) is approximately 4%. The standard on European level (EU-25) is 12-14%, with a note that the highly developed EU countries have penetration on the level of 20 to 25%. The determination of EU to encourage the competition and use of more advanced technologies such as FTTx, 3G, WiMax, more options for the introduction of competition in xDSL allow for quality and favourable offers for citizens and companies. The broadband internet enables access to all e-services and represents a basic tool for bridging the digital divide. E-Inclusion can be achieved only by introducing the broadband internet access in all households and companies, and that is the stake of i201020, as one of the basic bearers of transformation towards the knowledge based economy. As one of the measures for bridging the broadband gap, EU also proposes the use of structural funds for enabling broadband access for rural areas, which is more precisely described in “Guidelines on criteria and modalities of use of Structural Funds for electronic communications”21 of the European Commission. Additional support for this process comes through the directive for creating national strategies for broadband internet22 which is being undertaken as an obligation in the eSEE initiative, as well, which encourages the development of broadband in the SEE region. These strategies are based on the regulatory framework, state support for broadband access in rural areas, connection of schools, hospitals, local government units and 19 http://www.ectaportal.com/en/basic650.html http://ec.europa.eu/information_society/eeurope/i2010/index_en.htm 21 http://europa.eu.int/comm/regional_policy/sources/docoffic/working/doc/telecom_en.pdf 22 Completed obligation by the end of 2004 for all EU-25 20 Page 21 of 40