State aid: Commission approves German nation-wide scheme to support deployment of Gigabit networks in Germany

(Credit: Unsplash)

This article is brought to you in association with the European Commission.


The European Commission has approved, under EU State aid rules, a German scheme to support the deployment of very high capacity broadband networks offering Gigabit speeds in Germany. The aid will bring these networks to customers in areas where the market does not provide them, in line with the EU broadband connectivity objectives.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: Europe’s digital transformation depends on high quality networks. These are crucial for connecting the regions in the European Union and contribute to a more competitive and sustainable social market economy. The Commission strongly supports the deployment of Gigabit infrastructure in Europe. The German scheme will allow a real step change for very high speed connectivity in Germany. It will ensure that public money is channelled into the areas that are most in need of better connectivity, while at the same time fostering investment from private operators.”

Germany notified to the Commission an aid scheme to support the deployment of Gigabit networks in Germany. The scheme aims at developing a new, publicly financed very high capacity connectivity infrastructure that will deliver a faster internet for households, companies and public institutions in Germany. The scheme will have an estimated national budget of €6 billion, which will be complemented by contributions to the individual projects from regional and local budgets, for an overall estimated budget of up to €12 billion.

The new networks will be capable of offering speeds of 1 Gigabit per second (“Gbps”) symmetric (upload and download), which are significantly higher compared to those that users in the target areas currently have. The German Gigabit scheme will therefore bring about a significant improvement in connectivity (a “step change”).

The scheme will be available to under-supplied households, companies and public institutions.

In order to prioritise areas which are most in need, with respect to the connection of households Germany will follow a two-step approach when providing support under the scheme.

  • In a first step, Germany will focus on the support on the deployment of the relevant Gigabit infrastructure to serve households that have access to speeds of less than 100 Megabit per second (“Mbps”). The implementation of this first step of the scheme will significantly contribute to a reduction of the digital divide between rural and urban areas in Germany.
  • In a second step, which will begin as of 2023, support will also be available for the deployment of Gigabit infrastructure for households that already have access to speeds of 100 Mbps, but not to a network which already provides very high speeds up to 1 Gigabit. With the implementation of this second step, Germany aims to make Gigabit networks available for all citizens by the end of 2025.

This two-step approach ensures that the support is channelled first to the most under-supplied areas and that private investment is not crowded out, while at the same time providing households with the connectivity they need in a timely manner. By deploying the Gigabit infrastructure in two steps, the measure also takes into account the current scarcity of construction capacities in Germany and limits the risk of potential construction price increases which could negatively impact otherwise profitable private investment projects in very high capacity networks.

The scheme is in line with the strategic objectives of the Commission’s 2016 Gigabit Communication as it enables public investment in areas where the targets set out in the Communication (i.e. access by households to infrastructure providing 100 Mbps, upgradeable to Gigabit speeds by 2025) are not yet met and no sufficient infrastructure is planned by private investors.

At the same time, the measure protects incentives for private investments, by allowing for transition periods in areas where performing networks have been deployed only recently in order to support the amortization of those recent investments.

The measure also ensures that the supported networks will be open to other operators competing on the new infrastructure, by requiring the provision of wholesale access, including through the physical unbundling of the supported infrastructure.

To avoid duplication of infrastructures, the German authorities will therefore take existing and planned investments by market operators into account in the following way:

  • The infrastructure will connect customers that do not have access to certain minimum speeds yet: 100 Mbps download for households; 200 Mbps symmetric (upload and download) or more than 500 Mbps download for companies and public institutions
  • In a second step, as from 2023, the same threshold as for companies and public institutions will be applied for households – the new Gigabit networks connecting households in this second step can start operation at the end of 2025;
  • The new networks will not be deployed where a very high capacity network is already in place or planned by private investors, such as a fibre networks leading to the customers’ premises or upgraded cable networks.
  • Areas where there are two or more networks providing fast broadband (30 Mbps or more) in parallel are also excluded from the scheme.

The aid will be awarded based on open, transparent and non-discriminatory tenders, with all technologies being able to compete for provision of the service. On this basis, the Commission has approved the German Gigabit scheme under the Broadband State aid Guidelines.

Background

The new German nation-wide scheme follows two earlier Bavarian Gigabit projects, which were approved by the Commission in December 2018 and November 2019 and which provided Gigabit infrastructure to households having access to less than 100 Mbps.

Building on the EU’s existing 2020 broadband targets, the Commission has identified in its Gigabit Communication the connectivity needs to build a European Gigabit society, where very high capacity networks enable the widespread use and development of products, services and applications in the Digital Single Market. The Commission has clarified such connectivity needs in its Communication “Shaping Europe’s Digital Future”.

The German Gigabit scheme is in line with the strategic objectives of the Gigabit Communication and corresponds to the Commission’s expectation that households will increasingly need gigabit speeds as the decade progresses, as set out in the Commission’s Communication “Shaping Europe’s Digital Future“.

The existing 2013 Broadband State Aid Guidelines allow for such public investments where a market failure exists and where these investments bring a significant improvement (step change). This is also subject to certain other parameters to protect competition and private investment incentives.

The Commission is currently consulting stakeholders on the 2013 Broadband State Aid Guidelines and more generally on the existing EU State aid rules on public support for the deployment of broadband networks. The public consultation is part of an overall evaluation by the Commission of the relevant rules with a view to assess whether they are still fit purpose or whether they will need to be updated in light of recent technological and market developments. All interested parties can respond to the public consultation until 5 January 2021.

The non-confidential version of the decision will be made available under the case number SA.54668 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.


Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

This article was exclusively written for The European Sting by Mr. Franco Miguel Nodado, a 4th-year medical student from the Philippines. He is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s view on the topic, nor The European Sting’s one.

Autism Spectrum Disorders in Global Health: Bridging the Gap in  Awareness, Early Diagnosis, and Inclusive Care 

This article was exclusively written for The European Sting by Ms. Georgia Maria Vardalachaki, a medical student from the Medical University of Crete, Greece. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s […]
© WHO/Hedinn Halldorsson WHO Director-General Tedros and a health expert during operations involving the MV Hondius off Tenerife amid the hantavirus response.

Hantavirus-hit ship evacuation completed as quarantines begin

This article is published in association with United Nations. The passengers and crew have disembarked from the hantavirus-hit cruise ship MV Hondius in Tenerife and many have returned to their home countries, as the UN World Health Organization (WHO) said the operation demonstrated a “triumph of solidarity”. The repatriation effort, coordinated by Spanish authorities with support […]
© NASA The Strait of Hormuz which separates the United Arab Emirates and Iran is a strategically important shipping route

Strait of Hormuz de-escalation is urgent, says UN chief

This article is published in association with United Nations. As the Strait of Hormuz crisis deepens and tensions between Iran and the United States remain unresolved, oil prices rose again early Monday, prompting the UN Secretary-General to call for a peaceful resolution and warn of the widening fallout across Africa and beyond. “My strong appeal is […]
This article is published in association with United Nations.

Ukraine: Over 3,000 attacks on healthcare since full-scale Russian invasion

This article is published in association with United Nations. The World Health Organization (WHO) has verified more than 3,000 attacks on healthcare in Ukraine since Russia launched its full-scale invasion in February 2022, the UN agency reported on Friday. “During 1,534 days of war, Ukraine’s healthcare system has experienced repeated attacks,” it said.  Every aspect of the system has been […]
WHO Passengers from MV Hondius assisted by Spanish and WHO health teams after disembarking.

Passengers leave hantavirus-hit cruise ship in Tenerife as WHO says outbreak ‘not another COVID’

This article is published in association with United Nations. Passengers and crew from the cruise ship MV Hondius began disembarking in Tenerife on Sunday under a tightly coordinated international health operation led by Spanish authorities and the World Health Organization (WHO), as officials sought to reassure the public that the outbreak “is not another COVID.” The […]
Nuclear energy in the Middle East: A realistic choice or a risk?

Nuclear energy in the Middle East: A realistic choice or a risk?

This article is published in association with United Nations. As global electricity demand grows, so does the popularity of nuclear energy. In the Middle East, several countries are evaluating or advancing nuclear power projects, balancing weighty issues such as regional security, climatic conditions and international cooperation. “Nuclear energy is at the intersection of energy demands, technological […]
© NASA The Strait of Hormuz which separates the United Arab Emirates and Iran is a strategically important shipping route

Bahrain and US float Security Council resolution on the Strait of Hormuz

This article is published in association with United Nations. Bahrain and the United States have circulated a draft Security Council resolution calling for Iran to cease attacks in the Strait of Hormuz, their ambassadors outlined to journalists at UN Headquarters in New York on Thursday. The text is supported by Kuwait, Qatar, Saudi Arabia and the […]
© CDC An enhanced microscopic image shows the Hantavirus.

Hantavirus outbreak: Another passenger contracts disease

This article is published in association with United Nations. It’s been confirmed that another passenger from the cruise liner linked to the outbreak of hantavirus has contracted the disease, which has claimed the lives of three people on board and sparked an international alert coordinated by the UN World Health Organization (WHO). The individual, who is […]
This article is published in association with United Nations.

UN warns of worsening human rights crisis in Mali after deadly attacks

This article is published in association with United Nations. The human rights situation in Mali is rapidly deteriorating following coordinated attacks by armed groups across the country, with civilians killed, displaced and cut off from food and aid, UN rights office OHCHR said on Tuesday. The violence, which erupted on 25 and 26 April, saw large-scale […]
© UNICEF A damaged ambulance in Tebnine in southern Lebanon.

In Lebanon, the same fears and dangers persist despite ceasefire: UNHCR

This article is published in association with United Nations. Death and destruction have continued unabated in Lebanon while communities are still unable to return to their homes despite a ceasefire that began on 17 April, humanitarians said on Tuesday. “Civilians in the south of Lebanon and parts of the Bekaa [Valley] are really living with the […]
© Unsplash/Planet Volumes A computer-generated image shows the Strait of Hormuz.

Uncertainty continues over safety in the Strait of Hormuz

This article is published in association with United Nations. Amid claims and counter-claims of strikes and confrontations in the crucial Strait of Hormuz between Iran and the United States, UN maritime officials continue to urge vessels to exercise “maximum caution”. “We are aware of the reports but do not have further details. We continue to urge […]
© ADB/Ariel Javellana Women farmers in India sell wheat grain and buy fertilizer with the proceeds.

Middle East crisis puts aid, food, fuel further out of reach for millions already struggling – UN agencies

This article is published in association with United Nations. As the Middle East crisis continues the humanitarian fallout is worsening, with aid route disruptions and food and fuel price hikes wrecking the lives and the rights of the most vulnerable people worldwide, UN agencies warned on Friday. Heightened insecurity and instability around key Gulf routes, including […]
© Unsplash/Angus Gray Ship transits through the Strait of Hormuz have dropped by over 90 per cent since the crisis escalated in late February 2026.

Hormuz crisis strangling global economy, Guterres warns, demanding solutions to end stalemate

This article is published in association with United Nations. The escalating crisis in the Strait of Hormuz could push tens of millions into poverty, trigger a surge in global hunger and even tip the world towards recession, the UN Secretary-General warned on Thursday. António Guterres decried the restrictions on free passage through the crucial chokepoint which […]
This article is published in association with United Nations.

AI in advertising risks fuelling information crisis, UN warns

This article is published in association with United Nations. With spending on advertising topping $1 trillion a year worldwide, the United Nations on Wednesday highlighted the untapped power of major brands to shape the future of Artificial Intelligence, warning that a failure to act could deepen a global information integrity crisis. In a new brief titled […]
This article is published in association with United Nations.

2015 nuclear deal ‘no basis’ for any new agreement with Iran

This article is published in association with United Nations. The 2015 nuclear accord with Iran cannot be the starting point for a new agreement with the country, the head of the International Atomic Energy Agency (IAEA) said on Wednesday in New York.  Rafael Mariano Grossi was speaking during a press conference at UN Headquarters held on […]
Credit:Unsplash)

From Hormuz to Lebanon, crisis reverberates through trade routes, upending humanitarian networks

© WHO/Hanan Balkhy In Gaza displaced families are living in overcrowded tents and makeshift shelters, surrounded by waste and debris, with limited access to safe water and sanitation services. This article is published in association with United Nations. Disruptions in the Strait of Hormuz continue to send shockwaves through global food systems, the UN Food and Agriculture […]
© UNICEF/Mohamed Zakaria A displacement centre in El Fasher, North Darfur (file).

World News in Brief: Sudan drone attacks condemned, South Sudan violence, airstrikes in Ukraine, South Africa Freedom Day

This article is published in association with United Nations. The United Nations has condemned two recent drone attacks in Sudan, one of which left seven dead, Spokesperson Stéphane Dujarric said on Monday during his regular media briefing in New York. An aid truck from the UN refugee agency (UNHCR) that was carrying emergency shelter kits came under attack by […]
© IMO/Cihancan Tunay A ship makes its way across an ocean.

Chokepoints and conflict: How the Hormuz crisis is exposing global shipping vulnerabilities

This article is published in association with United Nations. The blockading of ships in the Strait of Hormuz as a result of the conflict between the United States and Iran has demonstrated how ships and seafarers have become “leverage in geopolitical disputes,” according to the head of the UN’s International Maritime Organization (IMO). Since conflict began […]
Middle East war: After oil and gas, concerns grow over minerals crunch

Middle East war: After oil and gas, concerns grow over minerals crunch

This article is published in association with United Nations. The shipping crisis in the Strait of Hormuz caused by war in the Middle East has exposed a new threat: a looming shortage of strategic minerals that drive economies all over the world – and a race by countries to obtain them. Until war erupted on 28 […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com