The Network Society - University of Massachusetts Amherst

Policies of Transition to the Network Society in Europe 377
ment that addresses only market imperfections. Those who
have succeeded have created certainty to investors, and generated
greater competition. Competition is key to stimulate
innovation while yielding lower prices and greater choice for
consumers. When markets that have been regulated become
competitive, regulation will be lifted.
• Second, the limited coverage of remote and rural areas. The
rapid growth of broadband is mainly taking place in urban
areas. Without public intervention, the digital divide may
aggravate. By its own nature, broadband offers opportunities
that would otherwise be unattainable in scarcely populated
areas. This is a challenge that should be addressed through
the national strategies and with the support of the EU’s structural
funds. On the demand side, investment in e-health, egovernment
and e-learning applications can play an important
role in driving consumers demand for broadband.
But, of course, the main objective is to increase the productivity in
the public sector. It means we need more value for money, more quality
and quantity for the money spent. This is necessary for many reasons.
We are in front of major demographic challenges in Europe.
This will increase public expenditure and reduce the share of active
population. Higher productivity in the public sector is necessary.
Good governance is vital for boosting economic growth.
eGovernment creates here major opportunities by enabling broader
transparency and by cutting red-tape. ICT enables also a well-functioning
internal market.
But contrary to the private sector, the government needs to push
for equity and efficiency at the same time. This makes the work more
challenging. But opportunities are also great. Development of e-government
services can transform the way the public administration
works. eGovernment services enhance the participation of citizens in
public life, change the nature of the services offered, and can provide
major efficiencies to the public administration. Policies should also
encourage government usage of broadband applications. Telemedicine
and distance learning are good examples. Promotion of broadbandenhanced
applications has therefore a twofold implication: it encourages
the efficient delivery of government services, and it provides