The EC says the European economy will benefit if more people have broadband coverage

The European Commission (EC) is asking member states to encourage greater broadband penetration across the EU to promote economic growth, especially in rural areas.

In its Bridging the Broadband Gap report, the EC argues that although broadband reaches an estimated 60 percent of businesses and households in rural Europe and over 90 percent in urban areas, governments need to further strengthen their broadband strategies.

“Broadband internet connections are a prerequisite for e-business, growth and jobs throughout the economy," Viviane Reding, commissioner for Information Society and Media, said in a statement. "If the EU and its 25 member states make a clever use of all policy instruments, broadband for all Europeans is certainly not out of reach by 2010. But the time to act is now."

The EC urged national governments to use EU and state funding to enable the rollout of broadband in remote areas, which are currently ill-served due to low and unsure return on investment.

It also recommended public/private partnerships and the exchange of best practices between governments and industry players.