New handbook on EU broadband state aid
9 May 2014 01:11 PM
The Commission has
published new guidance to help governments invest in broadband. The
handbook is useful for any public authority investing in broadband or looking
at co-funding projects with EU structural and investment funds
(ESIF).
European Commission
Vice-President @NeelieKroesEU, in charge of the Digital Agenda said:
"Broadband increases economic growth. This handbook helps local and
rural authorities in particular to use adequately public funds to install
broadband so citizens can enjoy faster and greater connectivity
everywhere.”
European Commission
Vice-President Joaquín Almunia, in charge of competition policy said:
"Thanks to our state aid rules, taxpayers' money goes where it is
needed, helping public authorities to achieve the right mix between public
and private investment. They also ensure competition is preserved in this vital
sector for the EU economy".
Did you know?
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Public broadband finance may
take the form of direct financial grants, tax rebates, loans and other
tools.
-
When a network is created with
taxpayers' money, it is fair that the consumers benefit from a truly open
network where competition is ensured.
-
Some finance (below
€200,000) does not need to be notified to the European
Commission.
-
“Fast broadband” and
“basic broadband” projects are treated differently under EU state
rules.
The handbook is based
on the Commission's State Aid Broadband Guidelines which were
revised in December 2012 (see Guidelines). The handbook explains how to
design a good project from the start and whom to contact at regional and EU
level to obtain funding and advice. It also outlines the minimum conditions for
state aid approval.
The guide suggests how to choose
appropriate technology for broadband deployment and a business model. Here are
some examples:
Bottom-up (or local
community) model. This approach focuses on a
group of end users of a particular area organising themselves into a
jointly-owned and democratically controlled group. Such a group could be
organized as a co-operative, for example. The group would
oversee the contract to build and operate the own local network. One project in the
Netherlands helped 7,500 homes get fibre network.
Public design, build and
operate model. The network is owned and
operated without any private sector assistance. A public organisation or a
public sector operating company may operate the entire network, or may only
operate the wholesale layer (with private operators offering retail
services). One project in Lithuania aims at improving
access to broadband in rural areas, bringing coverage to 98% of the area. It
helps eliminating the digital divide, increasing social cohesion and
contributing to economic growth with a more competitive rural
sector.
Background
Bringing high-speed internet to
all European citizens is one of the key pillars of the Digital Agenda for Europe, which aims to
ensure all homes have access to high-speed broadband of at least 30 Mbps by
2020.
The first Digital Agenda
broadband milestone has been reached - every EU household now has access to a basic broadband
connection.
In December 2012 the Commission
revised its guidelines on state aid for broadband, to adapt them to market
developments and align them with the objectives of the Digital Agenda for
Europe and the Commission's initiative on State Aid Modernisation
(see IP/12/458).
Useful links
Handbook for decision makers - The broadband State aid rules
explained
Fast and ultra-fast Internet access -
analysis and data
Broadband section on Digital Agenda website
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