The document summarizes proposed amendments to the European Union's state aid guidelines for broadband networks. It notes that the revised guidelines are generally positive and address earlier concerns raised in consultations. Specifically, it highlights the addition of "ultra fast" networks capable of 100 Mbps, which opens opportunities to extend the scope of state aid. However, it argues the guidelines could be improved by better defining targets and including upload speeds. It also presents estimates from the FTTH Council's cost model, finding the cost to deploy fiber optic broadband to all homes in the EU would be €202 billion, but aiming initially for "grey areas" could cost €73 billion, and infrastructure sharing and reuse could save an additional €50 billion.

1. State Aid & Next Generation Broadband – July 2012
Chris Holden, Chair P&R Committee, FTTH Council Europe

2. Proposed Amendments to State Aid Guidelines
FTTH Council believe the revised guidelines are generally positive
• A number of the issues/concerns raised in the earlier consultation have been
addressed
• Involvement of the NRA’s and therefore BEREC – greater cohesion
• More robust rules with the burden of proof on the challenger where requests
for Aid are challenged on the grounds of duplicate network.
• Most significant for the FTTH Council is the addition of “Ultra Fast”
Reference to FTTP and 100Mbps performance
• Opens up the opportunity to extend the scope of aid.
• However we would still like to see:
• improved definition of targets and the inclusion of upload capability
• To provide what’s promised – less of the “up to” as a requirement for aid.
• Public funds only available for building future proof networks capable of
meeting future demands (with the minimum of additional build/cost)

3. Reducing Cost of Roll-out – Making Aid go
further with FTTP
FTTH Council Cost Model
• Cost to achieving 100% of homes passed and 50% of homes with subscribers
is less than many of the estimates that have been expressed and our model
indicates €202bn
• Model assumes a completely new build and that no local fibre networks
exist (optical cables are overlaid)
• We have made an assumption that State Aid will be used initially within the
Grey Zones (35% of households) and estimate the cost to deploy FTTH in
these areas would be circa € 73 billion.
• Introducing modest levels of infrastructure sharing and re-use combined with
better use of existing technological advances and an element of co-investment
could provide additional savings of circa €50 billion.

4. Thank you for your attention!