The European Commission has approved under EU state aid rules the rollout of a public open network (Xarxa Oberta) in the Spanish region of Catalonia. The network will serve the connectivity needs of the regional administrative centres in the region and will be open at wholesale level to electronic communications operators seeking access to it.

After a detailed examination of the Catalan broadband scheme Xarxa Oberta, the Commission found the scheme to be in line with its Broadband Guidelines, because any distortive effects of the aid on competition are more than compensated by the advantages that the network will bring to citizens and businesses. The measure will contribute significantly to achieving the objectives of the Digital Agenda and will enhance the possibilities for infrastructure based competition in Catalonia without unduly distorting competition.

The project concerns the rollout of a publicly owned broadband next generation access (NGA) network to connect all regional public administration sites. The new network will allow the public administration, including those bodies situated in the most remote areas, to live up to the growing expectations of its citizens as regards the provision of advanced e-government, education and health care services.

Moreover, to meet current and future private demand for very high capacity broadband and to foster the competitive provision of broadband services, private electronic communication operators will be able to obtain fair and non discriminatory access to the spare capacity of the Xarxa Oberta wholesale infrastructure (backhaul) across the entire region, with the exclusion of the four provincial capitals (Barcelona, Tarragona, Lleida, Girona), which may be attractive for private investments. The provision of wholesale backhaul services to private operators falls within the scope of EU state aid rules and has to be assessed and authorised by the Commission.

Under the supervision of the National Regulatory Authority, Spanish CMT, access to the backhaul part of the public infrastructure will be open, fair and non discriminatory for all existing and future operators who wish to connect their NGA last mile infrastructures. This will generate higher broadband coverage, better quality and lively competition to the benefit of citizens and businesses in the region. In those areas still affected by the digital divide, where there are no adequate or affordable first generation broadband services, also basic broadband last mile infrastructures will be allowed to use Xarxa Oberta as a backhaul.

As a result, Xarxa Oberta becomes a major step towards achieving in Catalonia the goals of the Digital Agenda to provide 30Mbps access for all and 100Mbps for at least half of the households by 2020, without unduly jeopardising existing private investments.

The application of the Commission's Broadband Guidelines ensures that public funding will only be used where no private operator would invest on market terms and will only be handed out after a public tender. Open, non-discriminatory wholesale access will allow several broadband service providers to offer competitive services on the new networks.