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Plug in or perish

With little broadband use, rural regions risk obsolescence

By Markéta Hulpachová
Staff Writer, The Prague Post
May 23rd, 2007 issue

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Four years ago, applied sciences major Michal Toman and a group of his fellow students from West Bohemian University in Plzeň started “an adventurous project,” creating a citywide computer network to facilitate the sharing of local information.
Today, this network has grown into PilsFree, a nonprofit broadband network credited with bringing affordable high-speed Internet to remote locales in the Plzeň region.
Spreading the use of broadband Internet to rural European areas is a top priority for the European Commission, which showcased projects such as PilsFree in a European Union–wide conference May 14 in Brussels. The Czech Republic currently has one of the lowest broadband penetration rates in the EU, with only 10.6 percent of its population on high-speed access.
“It is essential to emphasize the value of the Internet in rural areas,” said Eva Roskotová, the Czech delegate from the Agriculture Ministry. “Widespread broadband Internet usage would unquestionably improve economic development in these regions.”
Despite the spotlight the EU has placed on the issue — four commissioners headlined the event — the country funds only a few projects to sponsor rural broadband use, essentially abandoning geographically remote areas and encouraging the continued evacuation of their populations to the cities.
And, with the uncertainty overshadowing the future of the Information Technology Ministry — which the government voted to dissolve May 2, folding most of its responsibilities into the Interior Ministry — it’s unclear if the government will support any new initiatives supporting rural broadband use.
Minding the gap
According to the EU Information Society’s annual report, “The Czech Republic presents a somewhat divided image of development, with above-average [business] connectivity but largely unconnected citizens.” Only 36 percent of the population are regular Internet users — compared with 43 percent of Slovaks and 78 percent of Danes, who rate highest.
At the end of 2006, broadband users accounted for 17 percent of the EU population. The highest penetration rate was in the Netherlands, which saw 31.7 percent of its population on broadband.
Though usage here is low, access is relatively widespread: In 2005, 75 percent of the country could use high-speed DSL, with a higher percentage expected for 2006.
However, despite projected growth, the EU still expects the country’s access to broadband to be 10 percent below the European average of 87 percent.
This disparity is heightened by a general European trend of low broadband penetration rates in geographically remote regions. In the Czech Republic, where 32 percent of the population lives in rural areas, this divide is comparable to the EU average — meaning rural broadband availability lags behind national coverage more than 20 percent.
An EU initiative to bridge this geographical digital divide was presented as part of the Riga Declaration in June 2006. The declaration prompted member states to “reduce regional disparities in Internet access across the EU by increasing broadband coverage in under-served locations.” The goal is to increase overall broadband coverage to at least 90 percent by 2010.
Although connectivity is especially important in rural areas, the infrastructural development of these regions is usually the slowest. In many rural areas, Internet subscriptions are not financially feasible for citizens.
Stimulating broadband use could help reverse the trend of a shrinking rural population, Roskotová said. The improved communication that would result could promote the growth of regional businesses, which in turn creates new job opportunities and supports population growth.
“Young people are leaving the countryside in search of jobs. It is in the interest of rural regions to stop this,” Roskotová said.
To sponsor such connectivity, the government has access to millions of crowns’ worth of EU regional development funding. But because direct state support of one service provider — such as market leader Telefónica O2 — would violate free-trade laws, the IT Ministry’s direct support is limited to regional nonprofits.
With more than 803,000 Kč ($38,680) of ministry funding for broadband development in four municipalities around Plzeň, PilsFree is among the most successful of these projects. Within a year of its launch as a student-managed broadband community, PilsFree was joined by citizen groups throughout the region. To help maintain its self-built infrastructure, PilsFree charges its users a monthly fee of 10 euros ($13.6/282 Kč).
“Many areas here don’t have high-speed Internet options, so our network is a very interesting solution,” Toman said. “PilsFree is able to deliver broadband to … areas that are unappealing to commercial providers.”
Since its establishment in 2003, the IT Ministry has agreed to fund 26 infrastructural projects that provide Internet development in rural regions. “All of these programs will continue, most of them under the Interior Ministry,” said Jan Ferenc, spokesman for the IT Ministry.
Toman said he’s skeptical.
“As far as future direct funding from the [government] goes, we’re not depending on it,” he said.

Markéta Hulpachová can be reached at mhulpachova@praguepost.com


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