The European Commission has published draft Broadband Guidelines (the Guidelines) on state aid for broadband and next generation access (NGA). A public consultation on the Guidelines has opened with Member States and stakeholders encouraged to submit their views on the proposed text by 22nd June 2009.
In relation to 'traditional broadband' networks, the Guidelines recap the Commission's favourable view on state measures for broadband deployment in rural and underserved areas and outlines its policy to help Member States channel increased public funding accordingly without breaching EU rules.
The Guidelines also address the public financing of high speed NGA (Next Generation Access) networks - with optical elements and capable of delivering broadband access services with enhanced characteristics (like higher throughput) as compared with 'traditional broadband'. They follow a series of recent Commission decisions which have clarified the grounds for accepting or prohibiting such measures.
In supporting the rapid deployment of NGA networks the Guidelines propose distinguishing between areas that lack broadband connectivity (white areas), areas where only one network infrastructure is deployed (grey areas) and areas where at least two competing broadband infrastructures are present (black areas). The Commission position regarding market intervention to foster the development of NGA networks varies between these white, grey and black areas. The Guidelines also set out the assessment conditions under Article 87.3(c) of the EC Treaty - "aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest".
Comments from Member States and stakeholders on the draft Broadband Guidelines are now invited.
