Policy Note 27: Digital framework conditions become a litmus test

The digital transformation is one of the biggest challenges, especially for Austria. "Efficient framework conditions for the digital transformation are becoming the litmus test for modern business locations," says Tobias Thomas, Director of the economic research institute EcoAustria. "This includes, in particular, a smart broadband expansion and the provision of digital skills," says Thomas.

However, Austria is still a long way from achieving nationwide broadband coverage. Although the overall coverage of households with at least partial fiber-based broadband access is above the EU average at 90%, coverage in rural regions is only 40%. The results are even clearer when only fiber-based connections are considered: In a European comparison, Austria shows a below-average figure of less than 10%. This is at least partly due to the well-developed first-generation broadband infrastructure.

Nevertheless, it can make sense to push ahead with broadband expansion, particularly in areas where it is worthwhile for growth and employment. The aim here is to achieve the expansion targets as cost-effectively as possible. If funding models are used, they should be designed to be technology-neutral and not favor individual technologies a priori. This is because broadband targets can be achieved using different connection technologies, which, however, incur different costs, according to the conclusion of an EcoAustria policy note published today.