EU member states’ spending on broadband subsidies has increased to billions of Euro, following new financing available from the EU Recovery and Resilience Facility (RRF) to support the digital transition.
In the EU, the use of public funding for private sector projects is always subject to state aid rules, which aim to ensure that competition is not unduly distorted.
We are pleased to present 4 selected case summaries from Cullen International’s new State Aid & Subsidies service, highlighting how the European Commission’s approach to enforcing these state aid rules is evolving together with the EU’s broadband policy objectives.
Case 1: Aid to increase the availability of fixed broadband networks
Our first highlighted case is a 2022 Italian measure which, apart from its very large budget, shows how VHCN deployments can be supported even in areas where relatively fast networks are already available.
This measure targets areas where no network providing at least 300 Mbps (download) is present or planned by 2026.
Case 2: Aid to increase the availability of mobile broadband networks
Our second highlighted case covers the 2021 €2.1bn German aid scheme to support the rollout of passive mobile infrastructure for high-performance 4G, or more advanced mobile voice and data services in the underserved areas of the country.
This was the first large nationwide mobile broadband deployment measure notified to the European Commission.
Case 3: Connectivity vouchers to increase the take-up of broadband services
Our third highlighted case covers the 2019 €50m Greek connectivity voucher scheme to support the take-up of 100 Mbps fixed broadband access services that are readily upgradable to 1 Gbps.
In its approval decision, the Commission for the first time shed light on its approach to demand-side measures that aim to stimulate broadband take-up, which is now being further elaborated in the ongoing review of the Broadband State Aid Guidelines.
Case 4: Social vouchers to increase the take-up of broadband services
Our fourth and final highlighted case is a 2020 €200m Italian social voucher measure helping low-income families to subscribe to high-speed broadband services and to lease a PC or tablet.
This was the first notified broadband state aid measure which the EU member state justified based on a social, rather than economic, objective.
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