The Austrian federal government has unveiled plans for subsidizing the roll-out of broadband networks to ensure a 100 percent coverage of 100 Mbps or higher by 2010. The plans were presented by federal minister for economics and infrastructure Alois Stoeger and include investments up to EUR 1 billion that will be spent on broadband roll-out. The funds for the subsidies come from the LTE frequency auction in December 2013 that yielded more than EUR 2 billion. The minister said that each euro of subsidy has to be matched by a euro investment from operators to ensure a level playing field and cooperation. For 2015, EUR 300 million is available, in 2016, 2017, 2018 and 2019, EUR 200 million per year is available, and in 2020, another EUR 100 million will complete the goal of 100 Mbps for all by 2020.
The first round of subsidies will start in May with EUR 85 million for communities to insert empty cable pipes in the ground when digging for other purposes. These empty pipes can than later be used for broadband networks. Another EUR 15 million has been earmarked for research and education initiatives, and EUR 200 million will be used to subsidise expansion and enhancement of existing networks or deployment of new networks to ensure coverage in currently forgotten communities following approval of the European Union. The subsidy will be awarded without prejudice to network technology, so fibre network operators, cable operators and mobile operators have an equal chance.
The operators have reacted positively to the plans, with the alternative operator’s association VAT president saying that important recommendations by VAT have been included. At the same time, Internetoffensive Oesterreich, set up by the mobile operators after the frequency auction, is content with the ambition to reach full coverage of 30 Mbps in 2019, one year ahead of the official EU goals.
