The European Commission, through the Community Lisbon Programme, and in particular the 2010 Initiative, has proposed the creation of a Single European Information and Communications Space.

In creating this space the European Commission intends to tackle four fundamental challenges posed by the digital convergence of these two worlds:

• Speed: to increase broadband speeds in Europe in order to provide enhanced content, such as high-definition video, or customized content, such as thematic information networks.

• Rich content: to increase legal and economic security in order to promote new services, programming formats and online content.

• Interoperability: to harness the ability of devices and platforms to communicate with each other and to facilitate the exchange of services between different platforms. This will enable global communications, through which all entities are connected instantaneously.

• Security: to safeguard communications and the distribution of information against fraud, malicious content and technological failure and thereby increase the confidence of investors and consumers.

According to the EU, the creation of new content, services and business models will stimulate economic development and employment. It is expected, for example, that the Western European market for online content will triple between now and 2008, with consumer markets expected to increase ten-fold over the same period.The impact of digital convergence will subsequently be felt around the World, leading to growth and greater competition in this sector. Currently, the sector as a whole accounts for 8% of EU GDP.

At a technical level, we are already witnessing digital convergence in communication networks, audiovisual media, treatment and storage of data and information, content, services and equipment. The improvement in networks is dependent upon new data compression techniques, creates new, faster distribution channels and makes possible new formats and service content, such as Voice-over-IP, Web TV and online music. Hence, digital convergence requires a coherent regulatory system to oversee the Information Society and the mass media.

The proposed Institute will promote digital convergence by bringing together the various business and research communities currently involved in this field.