State Aid: Commission invites comments on proposed revision of EU State aid rules for deployment of broadband networks

(Credit: Unsplash)

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


The European Commission has today launched a targeted public consultation inviting all interested parties to comment on a proposed revision of the Guidelines on State aid rules for broadband networks (the ‘Broadband Guidelines’). Interested parties can respond to the consultation until 11 February 2022.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “We now invite all interested parties to share their views on our proposed targeted changes to the Broadband Guidelines. We want to make it easier for Member States to foster the deployment of broadband networks including Gigabit and 5G networks. But also to limit the competition distortions when the market does not deliver.”

The Broadband Guidelines aim at facilitating the deployment and take-up of broadband networks in areas suffering from insufficient connectivity services, such as remote and sparsely populated regions of the EU. They enable Member States, subject to certain conditions, to support modern infrastructures capable of providing end-users with high quality and affordable connectivity services and reduce the digital divide where commercial operators have no incentive to invest. At the same time, the Guidelines also aim at protecting private investments by providing that no public intervention can take place where private operators invest and at fostering fair competition through competitive selection procedures, technological neutrality and open access requirements.

The Commission has conducted an evaluation of the current Broadband Guidelines. The evaluation revealed that the current Guidelines work well, are broadly fit for purpose and have made an important contribution to the deployment of broadband networks. At the same time, the evaluation showed that some targeted adjustments of the existing rules are necessary to reflect the latest market and technological developments and fast evolving connectivity needs as reflected in the current EU priorities.

In this context, the Commission is proposing a number of targeted changes. More specifically, the proposed revision consists of:

  • Introducing new speed thresholds for public support to Gigabit fixed networks and new guidance on support for the deployment of mobile networks. This aims at: (i) reflecting the increasing connectivity needs of end-users; and (ii) clarifying the conditions under which support may be granted, in particular with respect to the existence of a market failure and to the performance that the networks must achieve.
  • Introducing a new category of possible aid in the form of demand-side measures supporting the take-up of fixed and mobile networks (vouchers). The purpose is to ensure legal certainty, by clarifying the compatibility conditions that the Commission applies in relation to these measures, based on recent case practice. 
  • Further clarifying certain concepts, which are important for the State aid assessment carried out by the Commission such as, among others, mapping, public consultations that need to be carried out before granting the aid, competitive selection procedure, wholesale access obligations, and extension of the subsidised networks with private funds.

The draft Broadband Guidelines and further details about the public consultation are available online.

Next Steps

In addition to the consultation launched today, the proposed text of the Broadband Guidelines will be discussed in a meeting between the Commission and the Member States that will take place towards the end of the consultation period. This process will ensure that both Member States and other interested parties will have sufficient opportunities to comment on the draft Commission’s proposal.

The adoption of the new Broadband Guidelines is foreseen for mid-2022.

Background

The existing 2013 Broadband State Aid Guidelines allow for 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 provisions of the Broadband Guidelines are complemented by the General Block Exemption Regulation (‘GBER’), which lays down ex ante compatibility conditions on the basis of which Member States can implement State aid measures without prior notification to the Commission.

Between 2014 and 2019, Member States spent approximately €30 billion in public funding, in compliance with EU State aid rules, to fill investment gaps in broadband infrastructure deployment and to reach the objectives set out for 2020 by the Digital Agenda for Europe.

According to the Digital Economy and Society Index, by mid-2020, already 87.2% of households in Europe had access to fast broadband of at least 30 megabits per second (Mbps) download speed, and 59.3% were passed by networks capable of supporting Gigabit speeds. By the end of June 2020, nearly all EU households (99.6%) were covered by 4G LTE mobile networks and 13.9% were covered by 5G networks.

In its Gigabit Society Communication the Commission identified the connectivity needs to be achieved by 2025 to build a European Gigabit society, namely: (i) all European households should have internet connectivity of at least 100 Mbps download speed, upgradable to 1 Gbps, (ii) socio-economic drivers such as schools, hospitals and public administration as well as digitally intensive enterprises should benefit from Gigabit connectivity (1 Gbps upload and download); (iii) all urban areas and all major terrestrial transport paths should be covered by an uninterrupted 5G network.   

In February 2020, the Commission published the EU digital priorities among which the Communication on Shaping Europe’s Digital Future and recalled that connectivity to achieve the EU 2025 objectives remains the most fundamental building block of the digital transformation of Europe.

The Digital Compass Communication envisages that, by 2030, all Union households should be covered by a Gigabit network, and all populated areas should be covered by 5G. The Digital Decade Policy Programme’s proposal underlines that societal needs for upload and download bandwidth are constantly growing. It states that by 2030, networks with Gigabit speeds should become available at accessible conditions for all those who need or wish to have such capacity.


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

© IFAD/GMB Akash Prolonged disruptions to fuel and natural gas supplies could affect the global availability of fertilizers and impact crop yields. (file photo)

‘Clock is ticking’: Hormuz disruption raises fears of global food crisis

This article is published in association with United Nations. The clock is ticking for global food systems as disruptions in the Strait of Hormuz threaten to choke off the flow of fuel and crucial fertilizers needed for the next planting season – also raising the risk of higher food prices and a new wave of inflation.  […]
This article is published in association with United Nations.

Lebanon airstrike casualties ‘still under the rubble’ as ambulances, hospitals face new threats

This article is published in association with United Nations. With Lebanon still reeling from Israel’s devastating airstrikes on 8 April, UN humanitarians reported new fears of attacks on ambulances and looming food shortages in the south of the country on Friday. Speaking from Beirut, where he witnessed Wednesday’s attacks first-hand, the World Health Organization (WHO)’s representative […]
This article is published in association with United Nations.

Lebanon: Health system overwhelmed following a ‘horrific’ day of Israeli strikes

This article is published in association with United Nations. The scale and speed of destruction from the wave of airstrikes in Lebanon which began just hours after the US-Iran ceasefire announcement, has left the country’s already strained health system struggling to cope, according to the World Health Organization (WHO). WHO Representative in Lebanon Dr. Abdinasir Abubakar […]
© NASA/Jeff Schmaltz A satellite image shows the Strait of Hormuz. (far right)

Iran ceasefire raises hopes for reopening key Strait of Hormuz

This article is published in association with United Nations. The announcement of a shaky two-week ceasefire between the US and Iran, will it is hoped, lead to the opening of the strategically important Strait of Hormuz, a vital waterway through which one fifth of the world’s oil and gas passes. The strait has become a global […]
Fokah Wembe Darrell Dupray is a 4th-year medical student at Université des Montagnes, Bangangté Cameroon and a student leader within the Cameroon Medical Students’ Association (CAMSA).

Global Health Priorities for the Year Ahead: Why the Next Generation Must Lead

This article was exclusively written for The European Sting by Mr. Sharif Mohammed Sadat, a medical student from Bangladesh and serves as the Regional Director for Asia-Pacific of the International Federation of Medical Students’ Associations (IFMSA). He is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this […]
© IOM Families returning to Khartoum face the mounting task of rebuilding their lives and livelihoods amid damaged homes and limited access to basic services (file).

World News in Brief: ‘Skyrocketing’ needs outpace Sudan funding, Ukraine strikes update, global water security

This article is published in association with United Nations. The UN is significantly scaling up its presence in the Sudanese capital, Khartoum, to expand life-saving operations as the conflict between rival militaries approaches its third year. UN Resident and Humanitarian Coordinator Denise Brown has returned to the city with a core team, marking a renewed commitment […]
© UNHCR Smoke and debris from a building in the Bashura neighbourhood of Beirut, Lebanon, after an airstrike.

MIDDLE EAST LIVE 6 April: Strikes persist across region as humanitarian needs rise

This article is published in association with United Nations. Strikes and counter-strikes continue across the Middle East, with dozens of casualties reported over the weekend in Lebanon following Israeli strikes targeting the south and the capital, Beirut. Meanwhile, humanitarian needs are rising, critical infrastructure remains under strain, and the wider economic and global impacts of the […]
This article is published in association with United Nations.

UN nuclear agency chief ‘deeply concerned’ by reports of latest attack on Iran power plant

This article is published in association with United Nations. Reports of yet another projectile strike near the Bushehr nuclear power plant prompted Rafael Grossi, head of the International Atomic Energy Agency (IAEA), to register his deep concern on Saturday. The IAEA was informed of the strike – the fourth such incident in recent weeks – by […]
This article is published in association with United Nations.

Guterres warns of ‘wider war’ as Middle East conflict enters second month

The Middle East crisis has lurched into its second month, prompting UN Secretary-General António Guterres to issue a stark warning on Thursday morning that the world is “on the edge of a wider war” with catastrophic global implications. Speaking to the press outside the Security Council in New York, the UN chief painted a grim picture of the rapidly […]
This article is published in association with United Nations.

Middle East war: Energy crunch hits vulnerable nations

The war in the Middle East and the near halt to shipping in the Strait of Hormuz has amplified the energy crunch facing developing nations in Africa and South Asia that rely heavily on imported liquid gas, food and fertilizers.  And with Brent Crude still trading at more than $100 per barrel, many workers and households have reverted to […]
© WHO UN officials in Cyprus oversee the loading of emergency humanitarian supplies for Gaza.

Breaking the Gaza aid bottleneck: 106-tonne delivery arrives via new sea route

This article is published in association with United Nations. The World Health Organization (WHO) has facilitated the delivery of some 106 metric tonnes of lifesaving nutrition supplies to the Gaza Strip – the first shipment via a mechanism to deliver aid by sea, in line with a UN Security Council resolution and amid the ongoing war […]
© IMO Crew members take a break on a ship. (file)

‘No precedent’ for seafarers caught in war zone in post-WW2 era

This article is published in association with United Nations. Some 20,000 seafarers remain stranded on ships in the Strait of Hormuz as the war in the Middle East continues, a situation which has been described as unprecedented in the post-Second World War era. The seafarers are working on some 2,000 ships including oil and gas tankers, […]
© UNIFIL UNIFIL peacekeepers on patrol along the Blue Line in southern Lebanon.

UN condemns killing of two more peacekeepers in Lebanon

This article is published in association with United Nations. The United Nations has condemned two consecutive days of deadly attacks on peacekeepers serving with the UN Interim Force in Lebanon (UNIFIL), amid rising hostilities between Israeli forces and Hezbollah militants.  Two Indonesian peacekeepers were killed on Monday, and two more were injured, in an explosion that hit a UNIFIL logistics convoy, destroying […]
© WFP/Arete/Ali Yunes A building in Beirut lies in ruins after airstrikes in Lebanon.

Middle East war: Attacks on vital healthcare, evacuation strike fears

This article is published in association with United Nations. Almost one month since Israeli and US airstrikes on Iran began, sparking a wider regional war, UN agencies and partners on Friday highlighted the terror among civilians fleeing bombardment, with “no safe space” to go. In a rare piece of good news, though, the UN World Health […]
UN News/Daniel Dickinson The closure of the Hormuz strait is impacting trade on a global scale.

Persian Gulf crisis impacting food security, FAO warns

This article is published in association with United Nations. The intensifying conflict in the Persian Gulf “has triggered one of the most rapid and severe disruptions to global commodity flows in recent times,” the Chief Economist with the UN Food and Agriculture Organization (FAO) said on Thursday.  The crisis is affecting agricultural production and food security worldwide, with impacts […]

Gulf war ‘out of control’, Guterres warns, as UN appoints envoy to push for peace

This article is published in association with United Nations. UN Secretary-General António Guterres has warned that the escalating Gulf war is “out of control”, urging all sides to step back from the brink and allow diplomacy to prevail, as he announced the appointment of a senior envoy to spearhead peace efforts. Speaking outside the UN Security Council in New York […]
This article is published in association with United Nations.

Gaza: Commitment to US-backed plan crucial to recovery, Security Council hears

This article is published in association with United Nations. As tensions escalate in the Middle East, the international community must not lose sight of the situation in Gaza, an official with US President Donald Trump’s Board of Peace across the shattered enclave said on Tuesday in his first appearance in the UN Security Council.  High Representative […]
© IMF/Stephen Jaffe The UN is warning of surging food and fuel prices driven by the escalation of the conflict in the Middle East.

Dire fertiliser shortage a lurking threat due to Hormuz crisis

This article is published in association with United Nations. Since the start of the Middle East conflict with Israeli and US strikes on Iran on 28 February, concerns have been growing over rising oil and commodity prices. At the centre of it lies the Strait of Hormuz – one of the world’s most critical maritime chokepoints […]
© WFP/Arete/Ali Yunes A building in Beirut lies in ruins after airstrikes in Lebanon.

War in the Middle East: Iran nuclear facility hit as equivalent of ‘one classroom of children’ killed, wounded daily in Lebanon

This article is published in association with United Nations. More than 1,000 people have been killed and 2,584 injured in Lebanon since the start of the US-Israel war on Iran, UN officials said Saturday. Key points “Recent escalation has killed or wounded the equivalent of one classroom of children every day,” said Ted Chaiban, deputy chief […]

Comments

  1. This article is brought to you in association with the European Commission. The Commission has today launched a targeted public consultation inviting all interested
    technology

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