20101020 Broadband in Europe - Internet Hungary conference
1. European Commission,
DG Competition, State aid
1
Public funds, broadband networks
and digital strategies –
An EU perspective
Norbert GAAL
DG Competition – State Aid
Information, Communication and Media
European Commission
Internet Hungaria 2010
Siófok, 26/27 October 2010.
2. European Commission,
DG Competition, State aid
2
Agenda*
Introduction
Broadband Strategy
Role of State aid
Available funding
* This presentation reflects the personal opinion of the author and may not be regarded as stating an official
position of the European Commission or of its Competition Directorate-General. Responsibility for the
information and views expressed lies entirely with the author.
3. European Commission,
DG Competition, State aid
3
The broadband vision
“In a few years' time, broadband
access will be so cheap (and
ubiquitous) that we won't even know
if we're online or not.”
à la Gerd Leonhard – media futurist
4. European Commission,
DG Competition, State aid
Three main messages
• The utmost importance of a comprehensive
broadband strategy
• Clarification of the role of public funds for
broadband infrastructure development
• Secure EU funding to achieve the objectives of
the Digital Agenda
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6. European Commission,
DG Competition, State aid
EU strategy for infrastructure development
EU2020/ DIGITAL AGENDA
EU FUNDS (ERDF, ERDP, EAFRD, TEN, CIP,… )
NGA
Recommendation
Radio
Spectrum
Policy
Programme
Broadband
Guidelines
Broadband
Communication
Main targets
By 2013
• 100% bb coverage
By 2020
• 100% coverage of 30 Mbps
• 50% coverage of 100 Mbps
Main policy documents/
initiatives for broadband
infrastructure development
Available EU funds
• Direct grants
• Preferential loans
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7. European Commission,
DG Competition, State aid
Digital Agenda
• Develop and make operational national broadband plans by
2012 that meet the coverage and speed and take-up targets
defined in Europe 2020, using public financing in line with EU
competition and state aid rules;
• Take measures, including legal provisions, to facilitate
broadband investment, such as making sure that civil
engineering works systematically involve potential investors,
clearing rights of way, mapping available passive
infrastructure suitable for cabling and upgrading in-building
wiring;
• Use fully the Structural and Rural Development Funds that
are already earmarked for investment in ICT infrastructures
and services.
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8. European Commission,
DG Competition, State aid
Broadband strategies in the EU
Digital Britain
(UK)
• 2 Mbps for all by
2012
• 90% NGA
coverage by 2017
Plan Numerique
(FR)
• 512 Mbps for all
by 2012
• 100% NGA by
2025
Breitbandstrategie der
Bundesregierung (DE)
• 1 Mbps for all by
• 50 Mbps for 75% by 2014
and for 100% by 2018
National BB Strategy (S)
• 100 Mbps for 40% by 2015
• 100 Mbps for 90% by 2020
Plan of Action (SF)
• 1 Mbps for all by 2010
• 100 Mbps for 100% by 2015
National BB Strategy (EE)
• 100 Mbps for all by 2015
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9. European Commission,
DG Competition, State aid
Member States’ strategy
• Twin objectives are pursued:
1. To reach 100% basic broadband coverage
2. To support the rapid rollout of NGA networks
• Role of state aid
– Past: small, localized state aid projects from a few
Member States (e.g. UK, Italy)
– Now: national state aid schemes are part of
comprehensive broadband strategies
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10. European Commission,
DG Competition, State aid
Some announcements of state aid for
broadband deployment*
UK: €1000 million
Legend
Existing SA scheme
Ongoing discussions
No SA needed
No SA schemes
Non EU countries
France: €2000 million
Finland: €150 million
Estonia: €75 million
Germany:
€1000 million
Lithuania: €100 million
Poland: €1000 million
Portugal:
€100 million
No state aid used
Italy: €1400 million
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* Indicative amounts, as of September 2010
12. European Commission,
DG Competition, State aid
Why State aid is needed?
• The use of public funds are justified by the
socio-economic benefits that widespread
broadband coverage can bring to the
European citizens and companies
• Public funding will have crucial role in
infrastructure development
– to achieve universal broadband coverage
– to accelerate NGA deployment
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13. European Commission,
DG Competition, State aid
Role of state aid is increasing
• High investment needs of NGA networks
• “White NGA areas” will be most probably
larger than basic broadband “white areas”
• Strong political will to accelerate NGA
investments
• Increased EU funding is available to achieve
fast and wide roll-out
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14. European Commission,
DG Competition, State aid
EU State aid rules
• Not only the presence of infrastructure matters, but also
that effective competition takes place
• Aid only to areas where commercial operators unlikely to
invest in the near future
• Public funding has to be used carefully in the liberalised
telecoms markets to avoid unduly distorting competition
• The ultimate objective is to maximize consumer welfare
• The rules are stipulated in the Broadband Guidelines
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15. European Commission,
DG Competition, State aid
Smart use of public funds
In France, smart use of public funds resulted in
• Increased competition
• Wider broadband coverage
• More investments
• Better end-user prices
Report of ARCEP, France, 2009
L’intervention des collectivités territoriales dans le secteur des communications électroniques
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16. European Commission,
DG Competition, State aid
Policy decisions to make - examples
Ongoing debates:
• Sweden/ Germany: only passive infrastructure
elements for NGA support (ducts)
• France: separation of wholesale and retail
operation of aided projects + possible ban of VDSL
deployment
• Finland/Estonia/Lithuania: backhaul networks
with access points less then 2 kms from customer
premises – construction of last mile infrastructures
left for market operators
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18. European Commission,
DG Competition, State aid
Available EU funding
• Due to the over-stretched national budgets,
EU funds will have an increasing role
• Structural and regional funds (e.g. ERDF,
ERDP, EAFRD, TEN, CIP)
• Credit enhancement (backed by the EIB and
EU funds)
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19. European Commission,
DG Competition, State aid
Key success factors
• State aid should be part of an overall broadband strategy
• Active involvement of all stakeholders (private operators,
NRA, public authorities, …) in designing SA measures
1.Backhaul networks for basic broadband support
2.Passive infrastructure elements (ducts, manholes) for NGA
support
• Strong “open access” provisions
• High level of transparency of SA measures
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