The European Commission has authorised, under EU state aid rules, two schemes for broadband deployment. Both have been found to be in line with the Commission’s broadband guidelines. Accordingly, public funds will only be granted if no private operator is willing to invest under market conditions and only after a public tender procedure. In addition, open and non-discriminatory access will allow different broadband service providers to offer competitive services on the new networks.

The Italianscheme will finance a network aimed at bridging the digital divide in Lombardy and offering connectivity of at least 2 Mbps to at least 90% of the population in unserved areas of this region, where existing infrastructure is inadequate or non-existent.The areas concerned are primarily rural, mountainous and geographically disadvantaged and are not commercially attractive for telecoms operators. The use of incentive measures and subsidies will help prevent territorial disparity between urban areas and rural zones for broadband coverage. The Commission notes that, by using a public tender procedure imposing access obligations and respecting the principle of technological neutrality, the Italian authorities expect to extend broadband coverage to almost 100% of inhabitants of remote areas. It also assessed positively that public funding will be available only for multi-fibre ducts and that access to these ducts will be open to all interested operators, without any time limit. This will promote competition for future investment in next-generation networks.

The scheme in Germanyconcerns duct support and other financial measures to increase broadband access in unserved rural areas in the Saxony region. The measures aim to remedy the lack of availability of broadband in rural areas where private operators do not invest due to low profit margins. The scheme will give municipalities in Saxony the possibility of offering municipally-owned ducts to broadband operators, which will result in significant cost savings for broadband operators and should enable them to deploy their own network elements in areas that are commercially unattractive. The municipalities are obliged to offer multi-fibre ducts, which can host a large number of competing cables, which should stimulate competition to the benefit of customers in these areas. The scheme also provides for financial grants to operators for the delivery of their broadband projects. The public aid is limited to €500,000 per project, but the obligation to rely on existing infrastructures wherever possible should help to create local solutions for areas neglected so far.