The EU is looking to update its rules on government funding of broadband networks. The latest regulations on state aid for broadband date from 2013, but the market has changed since then, with new demands and technological innovations. As part of its 'Better Regulation' initiative, the European Commission launched a public consultation to gather input for a possible update of the broadband state aid regulations. Comments can be submitted until 05 January 2021.
The EU states provided EUR 30 billion in public funding in 2014-2019 to close gaps in broadband coverage and help reach their connectivity goals. The 2013 Broadband State aid Guidelines set the conditions for public funding of broadband networks. Public funding is expected to focus on areas that would otherwise be left behind due to no commercial interest to invest and on networks that support “state of the art” technologies. No public intervention is allowed where private operators have invested or credibly plan to invest, and competitive selection procedures must be used to award public subsidies. Technological neutrality and open access networks are further requirements.
The purpose of the public consultation is to assess whether the existing regulations have met their objectives for supporting broadband access, what effect they have had on the market and competition, and whether they need to be updated in light of recent technological and market developments and the new EU connectivity goals for 2025. Since the adoption of the guidelines in 2013, broadband technologies have significantly improved and users' needs have increased, requiring larger bandwidth as well as an improvement in network parameters such as latency, availability and reliability, the Commission noted.
In addition to the public consultation, the evaluation will involve internal analyses by the Commission as well as the conclusions of a study prepared by an external consultant. The Commission will summarise the results of the exercise in a Staff Working Document, which will be made public. The evaluation will provide the basis for a future Commission decision on whether an update of the current rules is necessary.
