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Image header Agence Europe
Europe Daily Bulletin No. 9149
Contents Publication in full By article 22 / 33
GENERAL NEWS / (eu) eu/state aid

Go-ahead for programme to bridge broadband communications gap in Ireland

Brussels, 10/03/2006 (Agence Europe) - The European Commission has given the go-ahead to an Irish programme to finance a broadband network, creating open-access Metropolitan Area Networks (MANs) in over 120 towns. At a cost of 170 million euro, the programme will offer high-speed broadband services to businesses and citizens in those towns where such an infrastructure is not supplied by market players. The management and exploitation of the networks, which remain in public ownership, will be tendered out to a wholesale operator. This wholesale operator will then offer its services to telecommunications companies, who will provide high-speed electronic communications services to end users. In late 2005, only 5.3% of Irish households had broadband connection and investment by telecommunications operators is limited due to the high construction cost and likely low return on the investment, said the Commission. The Irish scheme was considered to be in line with Community rules on State aid which allow subsidies for the development of certain economic activities or certain economic areas (Article 87§3-c)

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