Brussels, 03/07/2008 (Agence Europe) - On Thursday 3 July, the European Commission approved two state aid schemes to help bring broadband to areas of Germany and Italy which are usually not commercially attractive for private operators because the low population density does not allow them to attract enough subscribers to justify their investment. Berlin will get a €141 million scheme to help bring broadband to Germany's rural areas, and Rome will get a €7 million grant to help bring broadband to the mountainous areas of Italy in Alto Adige. The Commission analysis illustrated that the projects respect the obligation of limiting aid to a necessary minimum and also include additional measures to safeguard open competition.
Italy - The Italian subsidy of €7 million aims to help bring broadband to areas of Italy in Alto Adige that currently do not have access. This measure complements previous support to broadband in Alto Adige worth €6.9 million which the Commission approved on 10 October 2007. It turned out that connecting rural communities with broadband services in the isolated areas of Alto Adige has proven commercially unattractive. With the support of regional public funding, the measure helps encourage operators to provide broadband services in the Alto Adige areas where they are currently unavailable. The Commission believes that this public aid is justified by the benefits brought to consumers and the guarantees in place for safeguarding competition.
Germany - The German authorities intend to invest in a €141 million scheme to help bring broadband to rural areas of Germany. Competition Commissioner Neelie Kroes explained that this measure would help reduce the digital divide between rural and urban areas in Germany, which “is currently one of the highest among the EU member states”. Some of the funding may come through the European Fund for Rural Development. Similarly to the Italian case, the Commission believes that the aid serves a general interest, is limited to a minimum and contains measures to guarantee competition. (C.D./ transl./rh)