Connectivity Excellence – Made in Luxembourg 

Located in the heart of Europe, the Grand Duchy of Luxembourg may be small in terms of size, but when it comes to connectivity, the tiny country is capable of great things. The Digital Economy & Social Index (DESI) indicators for 2023, published by the European Commission, ranks Luxembourg fifth among the 27 EU member states in terms of VHCN Coverage, attaining an impressive 93.3% of households covered with high-speed internet, also highlighting Luxembourg’s progress in digitalising public services for citizens and businesses.

Where do our strengths lie? Where is there need for improvement? MyConnectivity explains Luxembourg’s ranking in the Desi report for you:

The DESI index ranking is based on four key interdependent components:

• Digital skills: internet use (Luxembourg: 4th), basic digital skills (7th), IT specialists (2nd), ICT graduates (4th)…
• Connectivity: Broadband coverage (4th), 5G coverage (7th), VHCN Coverage (5th)…
• Digital transformation of businesses: electronic information sharing (10th), Big Data (9th)…
• Digitalisation of public services: digital public services for citizens (2nd), digital public services for businesses (5th), e-government users (7th)…Luxembourg is thus a leader in many of these areas, alongside other pioneers such as Ireland, Malta and the Baltic States.

The DESI 2023 report shows that Luxembourg excels in meeting Digital Decade goals for digital skills, with 64% of its 16-74 age group having basic digital proficiency. The country is implementing various measures to enhance basic and advanced digital skills. Furthermore, Luxembourg surpasses the EU average in the presence of ICT specialists in its workforce, with 7.7% compared to the EU’s 4.6%. The representation of women among ICT specialists is also higher at 20.7%, exceeding the EU’s 18.9% average.

In terms of connectivity, Luxembourg also remains a top performer. The country’s strategy for ultra-high-speed broadband, published in 2021 and running until 2025, is being actively implemented. High-capacity network coverage has grown from 91.7% in 2020 to 93.3% in 2022. Luxembourg boasts a robust 5G network, covering 93% of the country, well above the EU average of 81%. As a result, the Commission concludes that Luxembourg is on track to meet the EU’s broadband targets.

Luxembourg’s SMEs, however, are just below the EU’s 69% average in basic digital readiness at 66%. Notably, their adoption of cloud services falls short of the EU average in 2021. There’s a need to support the advancement and use of cutting-edge technologies like AI and big data. Current policies prioritise workforce development and the growth of innovative start-ups. In the realm of cloud computing, Luxembourg actively participates in the Important Project of Common European Interest on Next Generation Cloud Infrastructure and Services (IPCEI-CIS), which strives to enhance the EU’s cloud capabilities.

In terms of digital public services, Luxembourg excels in providing digital public services to citizens and businesses, with scores of 95 and 97, respectively, nearing the Digital Decade target of 100. The Ministry for Digitalisation’s central role enhances digital public administration. User-friendly features, like videoconferencing, mobile apps, and electronic wallets, are continually added. Luxembourg adheres to the eIDAS Regulation with a national e-ID scheme and is working on a national electronic wallet. However, the accessibility of electronic health records for citizens lags, scoring only 67 out of 100 index points.

Luxembourg is committed to technological and digital progress. This is reflected in the government’s recent efforts and investments to improve the daily lives of citizens through the digitalisation of processes.

Ministry for Digitalisation: For the first time, a Ministry for Digitalisation has been established to drive technological development and develop new strategies to improve citizens’ daily lives and administrative processes. The Luxembourg government’s digitalisation efforts are therefore strongly focused on the needs of the population, in particular through the artificial intelligence (AI) strategy.

Data-driven innovation: the Ministry of Economy launched a strategy for data-driven innovation in 2019, underlining Luxembourg’s commitment to using the latest digital technological developments to build the digital economy of the future.

European collaborations: Luxembourg is actively engaged on the European stage, signing agreements such as the Declaration on the European Blockchain Partnership and the Declaration on Cooperation in the Field of Artificial Intelligence. These collaborations strengthen Luxembourg’s position in the digital arena.

Centre for Supercomputing: Luxembourg is not only a founding member of the Euro High-Performance Computing Joint Undertaking (EuroHPC JU), but also serves as its headquarters. The acquisition of Luxembourg’s Meluxina supercomputer is an example of the country’s commitment to promoting digital capabilities and supporting a digital society.

To remain economically competitive, it is important to be at the cutting edge of technological progress. Moreover, digitalisation facilitates many day-to-day activities, thus being of highly beneficial for all citizens of Luxembourg.

In a nutshell, Luxembourg’s strategic initiatives, including the creation of its own ministry, the pursuit of data-driven innovation and active participation in European collaborations, show that Luxembourg remains at the forefront of technology and digitalisation, fostering the country’s economic growth and ensuring a high quality of life for its citizens through its relentless commitment to technological excellence.