BRUSSELS, Sept 20 (Reuters) - EU countries should free up valuable broadband spectrum to mobile operators by 2013 to spur consumer demand, the European Commission said on Monday in its latest effort to boost cross-border trade and create jobs.
The European Union executive also stressed the importance of billions of euros of investment in high-speed broadband networks as it urged EU governments to set out concrete measures to encourage public and private spending and more competition.
"Fast broadband is digital oxygen, essential for Europe's prosperity and well-being," Neelie Kroes, EU commissioner for digital agenda, said in a statement.
The Commission will seek approval from the European Parliament and the Council of Ministers for a Jan. 1, 2013 deadline for EU countries to open up the 800 MHz spectrum with exceptions allowed until 2015 only in exceptional cases.
Broadcasters currently use this spectrum. Mobile broadband allows users to talk on the phone and surf the Web at the same time.
Germany, which wants more spectrum for rural areas, conducted its largest airwaves auction in May and sold 41 new frequency blocks, making it the only EU country so far to make the broadcast spectrum available for mobile broadband.
The Commission said it would bring forward plans together with the European Investment Bank to bring forward broadband finance instruments which will be unveiled by next spring. The EIB lends an average of 2 billion euros ($2.62 billion) annually for broadband projects.
Services, which use radio spectrum in the 27-country European Union, accounted for 2 to 2.5 percent of the bloc's annual gross domestic product or more than 250 billion euros, according to an EU study.
The Commission said investment of between 180 and 270 billion euros was needed if broadband services were to be available in every EU household by 2020. ($1=.7641 Euro) (Reporting by Foo Yun Chee)