Brussels, 01/06/2012 (Agence Europe) - On Friday 1 June, the European Commission opened a consultation exercise that will run until 3 September on the application of EU state aid rules to the public funding of broadband networks. The key issue for discussion is how to adapt the current guidelines to the objectives of the EU Digital Agenda. In line with the Commission's state aid modernisation package, the proposed changes aim to ensure that state aid policy in the broadband sector focuses on facilitating well-designed aid targeted at market failures and objectives of common European interest, streamlining rules and taking faster decisions. It is part of a general update of state aid rules, to be introduced by 2014.
The new state aid guidelines for broadband will cover public investment to deal with shortcomings in the market, introducing a dynamic framework for the application of EU state aid rules that fosters investment in this rapidly changing industry. To improve access in Europe to high speed broadband, it will be possible to provide state aid under certain conditions for connections faster than 100 Mbps, and for investment in infrastructure not directly connected with the transmission of services, such as ducts or dark fibre (passive infrastructure), which are very expensive. State aid might attract new commercial investors while preserving a competitive environment. (FG/transl.fl)