On Tuesday 6 June, the European Commission approved the new Croatian broadband plan, based around the new generation network (NGN) and with a budget of €101.4 million.
The plan aims to provide faster Internet in areas in which it is not currently available, particularly rural areas. The Croatian broadband market is characterised by low penetration levels. This broadband plan therefore aims to resolve the problem and help Croatia to increase its competitiveness and achieve the objectives laid down by the European Commission in the context of the digital single market.
The new generation network will be deployed in regions in which there is currently no NGN network, but also in regions in which the transmission network is insufficient.
The plan in question will be implemented over the period 2017-2023 and will be mainly financed by the European Regional Development Fund. Management of the plan will be entrusted to a public company, which will offer interested operators infrastructure leasing contracts and these operators will in turn provide connection services to local access providers.
The Commission made its decision in light of EU rules on State aid and the 2013 guidelines on broadband. These guidelines aim in particular to ensure that public funding does not take the place of private investment and that the infrastructure paid for out of public resources can be used by other service providers. This is to ensure lower prices for the benefit of consumers.
With regard to the project presented, the institution concluded that the positive effects of the plan on competition would outweigh any distortion effects on established operators. It therefore found that the plan complies with EU rules on State aid. (Original version in French by Lucas Tripoteau)