Commission adopts Guidelines for broadband networks

Over the past five years the Commission has supported the deployment of broadband networks, taking more than 40 individual decisions. The new guidelines are based on this experience and on comments received during public consultation in May and June 2008. They involve the application of the rules of EC Treaty state aid to public funding of broadband networks. They also contain specific provisions concerning the deployment of access networks, next generation, which allow public support to encourage investment in this sector.

The main objective of the guidelines is to encourage broadband deployment of broadband networks while preserving the market dynamics and competition in this sector. The Guidelines specify that whenever state aid is granted to private operators, it must encourage competition by requiring the recipient to test the open access to publicly funded network to third party operators.

In particular, the guidelines explain how public funds can be channeled for the deployment of broadband networks and core networks of Next Generation Access ( "NGA") in areas where private operators do not invest. It will require Member States to take into account not only infrastructure but also the existing NGA concrete investment plans of telecom operators in order to deploy in the near future such networks. The Guidelines contain several measures to promote competition and avoid crowding out private investment.

Investment in broadband networks are also a crucial part of the European Recovery Plan, for which the Commission has provided  1 020 million euros through the European Agricultural Fund for Rural Development (EAFRD) to develop Internet broadband in rural areas. The guidelines will help public authorities and others to invest these funds in an equitable and effective, thus contributing to short-term economic recovery and competitiveness of Europe's long term.

On 9 October, a conference will take place in Brussels in which experts will discuss about "Improving the implementation of innovative broadband networks in the European regions".