Europe publishes rules on broadband funding
Published: 21 September, 2009
READ MORE: Europe | Broadband | Regulator
The European Commission has published its rules for when stimulus funding and other state aid programs can be used for broadband build-out, aiming to make rules consistent across the Union and so speed deployment, which will rely heavily on wireless technologies in many countries.
According to competition commissioner Neelie Kroes, the rules will "facilitate the widespread roll-out of high speed and very high speed broadband networks, enhancing European competitiveness and helping to build a knowledge based society in Europe." The EU expects up to €300bn ($442bn) to be invested in the next decade, mainly by private companies but, as Kroes said in a statement "there is an important role for public investment in achieving the widest possible access to broadband in underserved and non-profitable areas."
Kroes laid out three rules for the use of state aid in rolling out broadband. One, where there is no private investment, a public service network is needed to ensure universal coverage. Second, aid must only be used to deploy networks in areas that private providers do not find profitable. Third, the network must be open to all service providers.
"Public funds are not always needed for public authorities to promote broadband deployment and, in any event, they should not crowd out or delay private investments," Kroes added. "Before granting state aid, public authorities should therefore consider whether they can promote private investments with other means, for instance by co-ordinating civil works and streamlining administrative procedures."
The guidelines cover fiber, ADSL, cable, Wi-Fi and cellular networks. The Commission is still working on a separate draft recommendation on what will be expected of operators in return for funding.
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