Of EU data mar­ket set to e to €111bn by 2020

Malta Independent - - NEWS -

can it find cor­re­la­tions?

“Turn­ing to cloud ser­vices, if big com­pa­nies have to keep data in all mem­ber states, then they can use dif­fer­ent clouds, but hav­ing to use dif­fer­ent clouds would be too costly for smaller com­pa­nies”, he said. “When we are able to re­move bar­ri­ers on the re­stric­tions of forced data lo­cal­i­sa­tion, then ef­fi­ciency will im­prove and the EU will get an €8bn per year growth in GDP. In ad­di­tion, re­mov­ing re­stric­tions will re­sult in a nine per cent re­duc­tion in op­er­at­ing costs for data cen­tres, and we will save €7.2bn over the next five years.

“Look­ing at the use of cloud ser­vices then, once again, the pic­ture around Europe is dif­fer­ent. Fifty-one per cent of com­pa­nies in Fin­land use cloud ser­vices, but the fig­ure is only eight per cent in Hun­gary. It is more fi­nan­cially ef­fi­cient and safe to use cloud ser­vices than us­ing your own server down in the base­ment. Ac­cord­ing to anal­y­sis, if com­pa­nies have their own servers, then only 20 per cent of those ca­pac­i­ties are re­ally used. In clouds, 90 per cent of ca­pac­ity is used, so if high speed is needed in some sec­tors, it is easy to switch to higher speed in a cloud, com­pared to chang­ing a server in the base­ment, which is more com­pli­cated.

“Some peo­ple think that banks can be robbed, which is why they keep money at home, but ev­ery­one knows that it’s pretty dan­ger­ous to keep cash at home. I can see par­al­lels with data, clouds and banks.”

On the idea of free mo­bile phone roam­ing ser­vices around the EU, and the com­plex­i­ties in­volved, Com­mis­sioner An­sip said: “When talk­ing about roam­ing, we are talk­ing about trav­ellers. Per­ma­nent roam­ing is im­pos­si­ble, be­cause the sit­u­a­tion be­tween one state and the next is very dif­fer­ent. In south­ern mem­ber states, where tourism is pop­u­lar, mo­bile phone op­er­a­tors have had to in­vest in pro­vid­ing ser­vices for vis­i­tors only dur­ing the sum­mer months. This means they would not be able to get much rev­enue in the other months. I am, of course, over­sim­pli­fy­ing the sit­u­a­tion.

“Mo­bile op­er­a­tors in Scan­di­na­vian coun­tries of­fer very gen­er­ous pack­ages, and prices are re­ally af­ford­able. Of course, we have to pro­tect these in­no­va­tive ser­vices-providers. Data prices in Europe are very dif­fer­ence. In Fin­land, for ex­am­ple, you get hun­dreds more kilo­bytes than you get for the same price in Hun­gary. The av­er­age con­sump­tion of data in Fin­land in a month is 10 kilo­bytes a month, but the EU av­er­age is one gi­ga­byte. If the whole­sale price in Es­to­nia is €1.4 per gi­ga­byte be­tween op­er­a­tors, and the whole­sale price in the EU be­comes €8.5 per gi­ga­byte, it could cre­ate losses for op­er­a­tors of €7.1 per gi­ga­byte.

“This is a com­plex is­sue. Peo­ple might try buy­ing SIM cards in Scan­di­navia, where they are cheap, and sell­ing them in coun­tries where they are more ex­pen­sive. If a mo­bile op­er­a­tor needs to check the price differential - be­tween the cheap price and where the cheap cards were con­sumed - they would need to de­crease qual­ity of ser­vices do­mes­ti­cally, or ask for a dero­ga­tion to stay out of the sys­tem”.

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