The European Commission (EC) has launched a public consultation on a proposal which sets out guidelines on the application of state aid rules to the public funding of broadband networks, including next generation networks (NGN). The consultation closes on 22 June 2009, and based on the comments received, the EC plans to adopt the final version of the guidelines by the end of this year.
In the first part of the proposal, the EC outlines its policy and past practice on individual cases of public support for ''traditional broadband'' networks to help EU Member States to channel increased levels of public funding in the most effective way. The second part of the draft Guidelines addresses State aid provided for the development of NGN, networks, which represent a major technological shift in the broadband market, requiring significant investments from operators. The EC's goal is to promote and support the rapid and timely roll-out of NGN, and as such it proposes an approach that is based upon the existing distinction between areas that lack broadband connectivity (white areas), areas where only one network infrastructure is deployed (grey areas) and areas where at least two competing broadband infrastructures are present (black areas). The Commission position towards public support for broadband network deployment varies from a positive view for ''white areas'' to a more critical assessment of aid for areas where private investment is already made or planned and where competition is effective.
The EC's draft Guidelines also set out a number of conditions that will have to be followed when allocating state aid, for the purposes of the compatibility with the rules set forth under Article 87.3(c) of the EU Treaty.
Further information:
- Consultation on the Commission's Broadband Guidelines on the application of EU state aid rules to public funding of broadband networks http://ec.europa.eu/competition/consultations/2009_broadband_guidelines/index.html
- State aid: Commission consults on draft Guidelines for broadband networks http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/813&format=HTML&aged=0&language=EN&guiLanguage=en
- State Aid reform http://ec.europa.eu/competition/state_aid/reform/reform.html
